LAWFUL DEBT RECOVERY VIA PHONE BY FINANCE COMPANIES

Nowadays, the situation of financial companies to collect debts through terrorist forms, threatening customers is rampant. Especially the form of continuous phone calls or calling at 1-2 am for the debtor. To better understand on the method of lawful debt recovery via phone for financial companies, please refer to the article below.

Provisions on methods of lawful debt recovery by finance companies 

The Circular 18/2019/TT-NHNN has tightened regulations for finance companies in urging debt collection from customers.

Specifically, a finance company is only allowed to apply measures to urge and recover debts suitable to customers’ characteristics, legal regulations and does not include measures to threaten customers, in which:

– Maximum number of reminder times is 05 (five) times/01 (one) day;

– Debt reminder form, debt reminder time agreed by the parties in the consumer loan contract but must be between 7 (seven) hours and 21 (twenty one) hours;

– Not reminding debt, collecting debt, sending information about debt collection of customers to organizations and individuals that are not obliged to repay debts to finance companies, unless requested by state agencies. competence in accordance with the law;

– Secure customer information in accordance with the law.

Procedure of lawful debt recovery

Reference on procedure:

i- Identify the correct debtor to negotiate;

ii- Introduce yourself;

iii- Clearly state where the payment came from;

iv- Proactively propose to offer a payment plan;

v- Stop and listen;

vi- Identify the problem that has arisen and how to solve it

– If debtor is committed to repay the debt: Ask them when to pay 100% of the debt and give the most recent payment schedule. In case the debtor agrees to pay but has conditions => If you cannot meet the conditions, you should not immediately negate or deny their conditions, you should ask them to answer later;

– If the debtor applies for an extension: Find out the reason for the extension. If they are really financially difficult, you should agree. It is important to consider how much they can pay in stages (Usually debtor will offer a payment plan from small to large. However, we have to propose payment in reverse direction. again);

– If the debtor does not agree to the payment because there are still problems that need to be resolved: Discuss clearly what problems they need to solve. If the problem is reasonable, help expedite to solve the problem as quickly as possible. If the problem is just an excuse, select another debt collection solution that cannot be collected by phone;

– The debtor does not agree to pay but does not state the reason: Report to your superiors or coordinate with a professional debt collector to handle.

vii- End the negotiation

– Before closing the negotiation, agree with the debtor about the amount, time and method of payment;

– After hanging up, take a note of the entire contents of this debt collection call.

>> RIGHTS OF DEBT COLLECTOR https://linconlaw.vn/rights-of-debt-collector/

>> BASIS OF DEBT RECOVERY FROM CONSTRUCTION CONTRACTS https://linconlaw.vn/basis-of-debt-recovery-from-construction-contracts/