When it comes to debt collection, many people think that a debt collection company always creates a tough situation for a debtor to collect money. They seal their assets or throw their family down to the street because the rent is overdue, and trying to portray that these debtors are like villains or thieves.
But the fact is the lender are the ones who offer a credit line, rent home, sell their product and give the debtor a greed to owe.
The creditors do have a right to their money, and a debt collector is simply trying to reclaim what is legally and ethically owed by you.
Debt Collection vs Legal Debt Collection
1. Debt Collection
In this phase the debt collection company work internally between debtor and creditor. The company collects all necessary information about debtor, his contacts and assets. They do skip tracing if the debtor is disappeared. The collection company team contacts the debtor through email, cold calls, and sometime visits personally. Guide the debtor, tell him the consequences and do necessary negotiations.
a. If the debtor is not in the same country then the company assign the case to outside a third party and share the overall commission,
b. It is also possible that that a debt collection company buy the debt and the creditor has no involvement. It is call write-off.
If a debt collection company has violated your rights under the FDCPA through repeated contact, abuse, threats, misleading information or false representation, you can sue them in state court.
2. Legal Debt Collection
If the debtor refuses to pay then there is another level where company files a civil lawsuit in UAE / Global courts against the debtors, claiming the due amount plus legal interest. Where legal notice have been already placed. The debt collection company provides all the required documents to a lawyer to implement the judgment through the court by all means necessary. The debtor can face travel Ban, selling mortgaged assets or provisional seizure. The debtor can also face imprisonment or life ban if he/she works in UAE.