Why does the creditor enforce my debts out-of-court?

You borrowed money from a lender and used them to buy useful or even less useful things. The money has been spent, the purchased items may no longer exist or do not work, but now the money needs to be returned. There is no other way. At this point, it is necessary to fight and do everything so that the costs do not increase more than necessary.

The object of your creditor's business is not debt collection, it is not something he wants to do and devote his time to it. However, the creditor also needs his money back, e.g. to provide additional loans, mortgages, or to improve its services to all customers.

If you get into a delay, the creditor tries to contact you, call you, sends you SMS, letters, emails. Often unsuccessfully. Why? One of the possibilities is that you did not inform him of your new permanent address or the address where he can contact you, a new telephone number or email. It is very important for you to be reachable.

After the failure of the recovery by the creditors, the contact is usually transferred to an out-of-court agency. The creditor does not want to address this situation further, as he has to focus on his business. Therefore, it uses specialists for this activity. Out-of-court agencies are experienced companies with a lot of experience in various areas of collection. They are controlled by creditors regarding the handling of personal data, bank secrecy, etc. You do not need to worry about your personal data, with out-of-court agencies it is safe. After collection, they will return your data to the creditor and delete it from their systems.

An important feature of out-of-court collection is that the process of collection costs you nothing as a debtor. In the case of court collection though, there may be a significant increase in the amount due to court fees, law firm costs, costs of execution, etc. However, this does not occur in the case of out-of-court collection. The costs of an out-of-court agency are borne by the creditor, despite the number of acts that the out-of-court agency has to perform. Yes, for example, find a contact to you. Always in legal ways, through social networks, phone books, etc. Remember - being in touch is always a win for both parties.

If you are not in contact with the creditor or the out-of-court agency, you will not have a chance to agree on a repayment schedule, convince the creditor to defer the repayments nor receive advice on how to proceed in your situation. You will probably find out that you are enforced only after the executor blocks your account, etc.

Thus, by using an out-of-court agency, the creditor follows only your good and, by spending his own funds, tries not to increase your costs and the amount owed.