Debt collection is a vast domain in the law sector of the U.A.E and its seven states of Abu Dhabi, Dubai, Sharjah, Umm al-Qaiwain, Fujairah, Ajman, and Ra’s al-Khaimah. Dubai also has company debt recovery and debt recovery solutions for its clients.
To this date, more than 50,000 cases have been resolved successfully by Dubai and its debt collection agencies. Dubai does not only provide services to its natives but also clients across the globe. Dubai takes pride in dealing with clients in about 200 countries.
Famous Motto
The expert teams on company debt recovery take pride in their motto: “No win, no fee” policy. This means that if the attorneys working on the case cannot win the case for you, you will not be charged a fee. This is the level of confidence Dubai has in its lawyers.
The lawyers have the relevant experience regarding their fields and have the most appropriate educational background in dealing with their client’s cases. The lawyers also guide their customers about the most suitable legal procedures.
Attorneys in Dubai also keep it in mind to elaborate on the implications related to a case. This includes all the advantages and disadvantages that are mostly linked with the scenario of each assigned patient. This enables their clients to make an informed decision about their cases.
The extensive worker of Dubai lawyers makes them highly successful throughout the world in recovering debt. All this success is due to:
1) Dedication
2) Professionalism
3) Relevant experience
4) Hard work
5) Sincerity towards work & worthy customers
Debt recovery solutions
They are the methods and means by which a debt recovery process is carried out for successfully collecting the amount, invoices, and bad debts. Bad debt is the amount of money that has been written off as an uncollectible amount by the original creditor himself.
Debt recovery solutions utilize various recovery tools to represent an approach towards debt collection. The answers are part of the whole debt collection methodology and the services provided by a recovery agent.
If these solutions turn out to be successful, they can offer:
1) Great profit margins to the lender
2) Increase the cash flow of a company
Since this money has been marked as extremely hard to recover, it is treated as a loss. Collection of this money can be highly beneficial for the original person who has lent money. Any company’s debt recovery can be through recovery solutions.
Methods of collection in company debt recovery
A debt collection agency is responsible for implementing debt recovery solutions. This can involve:
- Tracing techniques
- Communication techniques
- Pre-legal and legal code of conduct
All these steps can result in a successful debt collection strategy. Depending on the debt collection agency’s policy, the service for providing methods and solutions requires payment by either the debtor or the creditor.
The first recovery solution is as follows:
- A collection agency uses a tracing and tracking method to find and contact the subject of debt. This is also called a “consumer”.
- Once the debtor is located, the agency contacts the consumer.
- Phone calls, official letters, and voice messages are sent.
This type of methodology is called “multichannel”. They are also referred to as multichannel debt recovery solutions. When a debtor cannot be traced or located, former employers are the contact, or the family is called.
For a company’s debt recovery, the matters are much formal:
- From the beginning of the collection process, formal letters are dispatched
- General reminders are also sent using a multichannel system
- Letters of demand are sent if there is no response from the debtor
- Final warnings are issued if still there is no response
- Letter before action is dispatched. The court issues this if the deadlines have been crossed.
Various other debt collection solutions can be adopted for company debt recovery. This includes:
- In-home visits by the collecting agents
- Collection solicitors can also be involved
- Recovery lawyers are given a permit for seizing possessions and belongings
- The assets of the debtor are auctioned
- The debt amount is recovered.
The debt collector agent tries his best not to use forceful actions. They prefer to arrange another payment from the debtor to make up for the lost time. This is called debt negotiation.
Debt Negotiations
In such negotiations, a suitable payment plan is laid out for the debtor by the collection agent. This is also part of the company’s recovery solutions. The payment can be in the form of:
- One total large amount in the given period
- Paying on installments
Before the court proceedings can begin, a final letter of warning is issued to the debtor. This is done to inform the debtor about a legal action that will take place and its exact date. Such strong measures are taken at the end when the court has no choice but to seize assets.
At this point, the case is handed over to court, and the debtor is no longer contacted by collecting agents. Instead, court representatives take over the issue entirely.
Conclusion
Debt recovery solutions are provided by all debt collection companies. Failure to return debt can result in adverse consequences and the issuance of court orders.