What Are International Debt Collection Laws?
There Are NO International laws, Every Country has Its own Rules and Regulations For Debt Collection. There are No Specific Laws for International Debt Collections.
Debt is not the term of this era but its dates back since the beginning of time. It was more commonly known as the barter system, where the people used to exchange their services and goods with one another.
So what happens when one party fails to give back a promised good or service within a time limit? At that time, the need for claiming their belonging arose among the population. When you owe someone something, it is a debt.
Debt Through The Ages
Ever since the currency was established, people have been borrowing and lending money. When you lend money to someone, that person owes you your money back. That is why a system for legal debt collection was needed to keep a track record of the debt taken and trace the debtor.
Like all over the world, U.A.E and its seven states Abu Dhabi, Dubai, Sharjah, Umm al-Qaiwain, Fujairah, Ajman, and Ra’s al-Khaimah, have law firms and companies and agencies that regulate the collection and distribution of debt among their clients.
The whole process of collecting debt once it has been given away is extensive. That is why it is tried that debt collection is regulated as per the laws and regulations of the U.A.E. That is why the legal consultants of the U.A.E try their best to make debt collection effortless for their clients.
Legal debt collection involves:
- Chasing a debtor down to return payments
- Tracing a company for producing the lent money
There are debt collection laws related to health, insurance, banks, real estate, construction, and business. The debt collection involved in business laws is much more common in Dubai as people from all over the world borrow and lend money.
An individual takes a loan to start up a business or a small company of his own. In such situations, money is required. Similarly, the big-scale companies lend money to the smaller ones so that they can progress.
However, if the debt is not paid within a time limit, this stirs up commotion in a lender’s mind. The lender then prefers to hire a lawyer for tracing down his money. Attorneys are hired to reclaim money via a legal process. Specific strategies are employed while recovering money:
- Determining Credibility
The first and foremost step is to check the credibility of the creditor in the market. To secure your debt, you need to verify the credibility of the creditor in the market. You must also carry out a background check to know about past business relationships to secure your debt.
You may also go as far as demanding a police clearance certificate to check if the creditor has any pending cases in history or not.
- Keeping proper documentation
Whatever the statements of a debtor or lender are, one must have proper documentation of all the payments for presenting a good case in front of a lawyer. Sometimes, a written contract or any acknowledgment of the debt is also sufficient.
Documents are needed to verify your statements in front of the law. If there is pending debt, it should be in the record. Also, a bank statement should be there for claiming the transfer and receiving of money.
- Issuance of a Security Cheque
Legal debt collection is also regulated by the presence of security cheques which ensures the safety level of a particular payment. To seek an outstanding balance, one can en-cash a security cheque. However, in cases where a cheque has been dishonored, it is straightforward to report a:
- Criminal complaint
- Civil complaint
Business debt collection laws are applied in collecting pending debt money. A debtor can contact many companies or agencies that can help collect outstanding debt. An attorney may also serve a warning or a legal notice in settling a matter outside court. Failing to do this will result in a civil or criminal proceeding.
- Know your legal options
Legal debt collection requires that an amicable settlement be sought at first. However, if that is not possible, then legal complaints can be filed against a debtor who has a non-serious attitude towards paying back the money or has no intention of doing it in the future.
- Civil Case Filing
If there is no response from the debtor for a very long time, a civil case can be filed for claiming a debt. Doing this transfers the case and all of its details into the hands of a court. Now the entire proceedings will be looked over by the court itself.
Summarizing Things Up
Business debt collection laws are regulated by legal debt collection that is done through agencies and their lawyers. If debt collection is handled through the law, it is very methodological and saves the client a lot of worry and timeless efforts.