Read the reminding letter carefully and check who it was sent from. If you are aware of the existence of the obligation, pay it according to the instructions in the letter. If you have any questions, contact the collection agency at the contact details given in the letter.
The collecting agencies receive the information from the creditors about payments by debtors with some delay. It is possible that the payment has not yet been submitted to the collecting agency at the time when the letter or SMS is generated. In any case, you can contact the agency to check if the amount you have transferred is reported to them and to inform them that you have payed out your debt.
If you do not have the financial resources to settle your debt at the moment, you can contact the agency that collects it in order to agree a new repayment plan that is in line with your capabilities. The collecting agency will coordinate it with your creditor; however, in some cases, may advise you to negotiate directly with your creditor’s employees.
By law all collecting agencies should be registered as a Personal Data Protection Administrator at the Personal Data Protection Commission so that employees can request your three names or the first 6 digits of your PIN to verify that they are talking to the holder of the obligation. This is done to ensure that communication is conducted with the true debtor, and that no information about your obligations will be shared with a third party.
If you pay your debt in time, you can save yourself a lot of expenses like additional interest, fees and other costs. Frequently, in court proceedings, legal costs increase over time and may reach amounts higher than the obligation itself.
We advise you to contact the collecting agency immediately and let them know that you receive letters to a person who does not live there. This may cost you little effort, but it is the fastest way to remove your address from the agency’s list of clients with obligations.
Cession is a contract whereby the creditor of one obligation sells it to a third party. After the conclusion of the contract, the buyer of the obligation has the same rights to the debt that the original lender previously had.
Usually, your contract with the original creditor has a clause that allows the creditor to sell your debt and transfer the related personal data to a third party. By signing the agreement with your creditor, you have agreed to this condition, thus making possible and lawful the sale of your obligation and respective providing of your personal data to the new creditor.
The price for the transfer of the obligation is a business secrecy. If, however, the obligation is redeemed at a price lower than the amount due, this does not mean that the amount due is reduced. Advantage for you however, could be that the new creditor would often provide more flexible payment plans to meet your current capacity.
The expiration of the prescription period of the obligation deprives the creditor of part of the instruments for its collection, but by no means does it mean that the obligation ceases to exist. Imagine giving your good friend Ivan a loan of 1000 leva. Ivan goes abroad and you see hum again in a few years, when the prescription period for your taking has long since expired. Will you look for the money from Ivan or will you agree that he is already outside the prescription period?
When the obligation is not paid on time, the creditor proceeds to apply different collection methods, usually starting with sending sms reminders, phone calls, and reminding letters for a specified period. If within this period there is no dialogue with the client and good will to repay the debt, the creditor may proceed to a legal action. The legal actions usually take time and are associated with extra costs such as fees and charges, which this additional time accumulates on the debt and are subsequently to be paid by the client; in contrast to the initial, extra-judicial collection actions, that are still at the expense of the creditor.