Debt collection services in Poland

Unfortunately, in this day and age, we often encounter a situation when our debts are not recoverable. Often, attempts to negotiate with the debtor, appeals or payment appeals are ineffective and remain unanswered.

In such cases, the creditor may use the services of debt collection companies who will take care of the collection of receivables due to us. Involvement of the debt collection company is largely dependent on the expected remuneration, usually the remuneration of the debt collector is set as a percentage of the amount recovered. In Poland, the remuneration of the debt collection company is set at 5-25%. The rate is set individually and depends on the type and amount of debt. In the case of large amounts whose payment period has expired, while the debtor’s assets are dubious – the debt collection company will set a higher rate.

Collectors in their actions use different methods, ranging from telephone conversations, personal meetings with the debtor. Send payment reminders and requests for payment. There are situations in which debt collectors use the services of detective companies. The basis for conducting debt collection proceedings is determining the debtor’s assets from which enforcement can be carried out (eg savings on bank accounts, deposits, movables or real estate). The collector should know the basics of the psychology of human behavior. Debtors often shy away from conducting conversations, avoid receiving correspondence or make a promise to repay the debt, which remains unpaid. A professional debt collector should anticipate the potential behavior of the debtor and select appropriate negotiation methods so that the debt collection becomes effective.

Debt collection consists of three stages:

– friendly proceedings,

– court proceedings,

– enforcement proceedings.

Negotiations and talks are held in the first stage. If the parties agree at this stage, an agreement may be reached regarding the debtor’s repayment in the installment plan.

If the amicable proceeding does not bring results, the debt collection company or the binding bureau may, on our behalf, submit an application to the common court to issue a payment order. Such a request should include specifying the amount of arrears with the due date (the debtor may indicate that he is demanding payment of interest). The application should specify that the creditor requests that the debtor be ordered to pay the court costs and the costs of legal representation. The application should be accompanied by the collected documentation – sent to the debtor, requests. The District Court or District Court to which the application has been submitted gives the debtor a payment order obliging him to pay the amount due within 14 days or to lodge charges within this period. If the charges are not brought, the payment order becomes valid.

A valid order for payment is the basis for referring the case to the enforcement proceedings conducted by the bailiff. The bailiff is the body that can carry out debt collection from the debtor’s assets – by taking his funds on bank accounts, deposits or in the absence of funds, he or she is able to collect debts from the movable or immovable property of the debtor while conducting a bailiff’s bid.

Although the collection process is sometimes time-consuming, every creditor should try to recover the amounts due.