RIGHTS OF DEBT COLLECTOR

“Debt collector” (or the person with the right to request the completion of the debt obligation) has the right to apply measures to protect his or her financial rights, but should be careful to comply with the provisions of law. So what do the rights of debt collector include?

1. The debt collector has the right to request the other party to properly execute the contract

Compelling performance of the contract is one of the rights of debt collector to request the debtor (or, respectively, the aggrieved party and the violating party, based on the relationship in the contract) to comply with the mutual agreement in the contract. The agreement in the contract may include rights and obligations directly related to the debt recovered, other measures to ensure the above obligations are fulfilled, and additional costs that the violating party must comply with.

In particular, the costs incurred by the debtor must be compensation for damages and penalties for breach of contract as specifically presented in the section below this article. Depending on the parties’ agreement, rights of debt collector may include requiring the debtor to comply with:

– Bearing penalties for violations and compensation for damages;

– Paying only compensation for damages without bearing penalty for violations.

Through sending notices, emails or other forms specified in the contract, one party can force the other party to seriously perform the contract in accordance with the previous agreement of the parties.

2. The rights of debt collector to impose penalties for violation of contract

Regulations in the 2015 Civil Code, a penalty for violation is an agreement between the parties in the contract, according to which the violating party must pay an amount of money to the violated party. In the 2005 Commercial Law, a penalty for violation is defined as the aggrieved party’s request for the violating party to pay a fine for breach of contract if agreed in the contract, except for cases of exemption from liability as prescribed.

Regarding penalty according to the 2005 Commercial Law, unless specifically stated otherwise, the fines for violations of contractual obligations or the total penalties for multiple violations are agreed upon by the parties in the contract, but not more than 8% of the value of the violated contractual obligations.

However, it should be noted that the rights of debt collector to request this penalty can only be applied if it is recorded in the contract. In other words, sanctions for violation of contract are not sanctions that arise automatically but must be based on the initial agreement of the parties.

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3. The rights of debt collector to claim for damages compensation

Compensation is the act of the violating party compensating for the losses caused by the breach of contract to the violated party. The value of compensation for damages includes the value of the actual, direct loss that the aggrieved party has suffered due to the violating party and the direct benefit that the aggrieved party would have enjoyed if there had been no violation.

Noted that, to exercise the rights of debt collector to claim for damages compensation, the debt collector is obliged to prove its damages, the level of loss caused by the violation and the direct profits that would have been entitled to if there had been no violation, then the violating party can be required to pay damages.

According to the Civil Code 2015, the obligee can request compensation for damages for the benefits he or she would have enjoyed as a result of the contract. The obligee can also request the obligor to pay costs arising from failure to fulfill contractual obligations that do not overlap with the compensation for damages for the benefits brought by the contract. In addition, at the request of the right holder, the Court can force the obligee to compensate for mental damage to the right holder.