Debt collection is a process of collection of debts by individuals or businesses. It’s a very normal process in world of business (from smaller to larger ones). Many a times, debt collection can be a critical task for an individual or company. Nowadays we have debt collection agencies who help us in managing our debts following proper legal terms.
Steps for debt collection in UAE
In a debt collection process, our initial course of action is to gather every possible information about your debtor. First you should enquire about their market image and responsiveness as an individual and also as a business. Do check their previous records of other business dealings and also enquire about any legal history or any pending disputes.
If you are planning to have a meeting, then be prepared with all necessary documents and other essential information that may help you to have a professional yet friendly communication.
In debt collection issues, you need to be very particular about the documentation process because every bit of a business paper could be vital for filing a case. While having business conversations about the debt, maintain a record of everything that is discussed during the meeting. It’s very important to maintain files which includes contract, money receipts of transactions, bank statements, various business letters, emails and other essential paperwork that can strengthen the legal front. Also, you could even save the details in tracking softwares for future reference in case of any dispute. Always keep yourself updated about every bit of information you get about the debtor.
A Security Cheque is issued to a drawee as a security if the drawer fails to meet the future commitments in business dealings. Security cheque is useful in the debt collection process if the debtor is a defaulter in repayment of debts.
In case the security cheque bounces, the debt collector can hire lawyers who can guide them to take appropriate legal actions against the defaulter. Both parties could have lawful discussions to find out negotiable means resolving the case.
We can try out some of the pleasant methods to collect our debt amounts. Try to know the real situation of the debtor and also find out if their reasons of being a defaulter is legitimate. Have some friendly and constructive conversations that might result in some positive response. Discuss the details of a contract again and give them a recap of the vital terms and conditions. Also provide them other amicable options which would be preferable for both the parties and the case could be settled without any legal interference.
When the debtor rejects the negotiable settlement options and the case worsen, there comes the role debt collecting agency. These agencies provide us with expert lawyers who guide us in filing case against the debtor. Letter of demand is sent by the legal authority to the debtor and should be responded by the defaulter in a stipulated time frame to settle the case. If they do not respond, then they have to face the legal consequences. The lawyers examine the case in detail and suggest innovative ideas to recover the debt amount.
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