AW Holding
Legal debt collection companies in Qatar serve as a bridge between creditor and debtor, offering a more robust approach to outstanding debt management than traditional collection agencies.
Unlike standard agencies, the legal debt collector possesses the authority to initiate legal proceedings, making them a formidable option for creditors facing persistent non-payment and late payment issues.
Their unique position allows them to navigate complex legal landscapes, ensuring compliance whilst pursuing collection process through various means, including formal demand letters, court orders and enforcement actions.
What is the debt collection law in Qatar?
The legal system in Qatar is divided into two parts, the criminal law and the civil law which is underpinned by commercial law, that regulates and rules on commercial debt collection cases, whether between individuals or companies.
Key Legislation Impacting Legal Debt Collection in Qatar:
Civil and Commercial Procedure Law:
Addresses the laws surrounding debt enforcement, particularly focusing on the use of imprisonment as a penalty for not following court orders.
Qatar Financial Center Law:
Creates a legal system for financial matters, permitting court proceedings in English or Arabic, and promoting solutions outside traditional litigation.
Consumer Protection Law:
Protects consumers from unfair debt collection practices by regulating business-to-consumer interactions.
Legal Framework for Debt Collection in Qatar:
Legal debt collector starts with pre-litigation efforts including negotiations, retrying amicable solution to reach a settlement or even go to mediation centers if both parties agreed, if no resolution occurs, we move to legal proceedings promoting dispute resolution with the following matters:
Acquiring a Court Order for Unpaid Debt:
Legal debt collector negotiates payment timeline on behalf of creditors, calling court proceedings if this fails.
Small Claim Amount Procedures:
The QICDRC provides a simplified, low-cost legal process for handling debts of QAR 100,000 or less.
Court Fees and Timeline:
The cost and length of legal proceedings significantly impact the decision to pursue debt collection.
Legal Awareness:
To successfully recover debts, one must understand the local legal system, cultural sensitivities, and regulatory environment, that’s why we recommend taking the journey of your legal debt recovery with a legal debt collector.
How long is available for a debt to be legally claimed in Qatar?
The length of time a debt can be collected or claimed in court in Qatar varies depending on the type of debt. the general statute of limitations for most contractual claims in Qatar is 15 years.
This means you typically have 15 years from the date the debt was incurred to initiate legal action and settle by a legal debt collector. but there are some exceptions:
- Cheques: Claims related to cheques have a shorter limitation period of 3 years.
- Merchants’ claims: These claims have a limitation period of 10 years.
- Employment claims: For claims related to employment, the limitation period is 1 year.
Do unpaid collections go away?
Not necessarily, while there’s a common misconception that debts simply disappear after a certain period, the reality is more complex. Why?
- Statute of Limitations: This is a legal timeframe after which a creditor can no longer sue the debtor to collect the debt as the length varies by type of debt as mentioned above, also if even the statute of limitations has passed, the debtor still owes the money.
- Credit Report: Unpaid debts can stay on your credit report for up to 7 years from the date of first delinquency, this can impact your credit score and ability to get loans or open credit lines for your company.
- Selling the Debt: Debt can be sold to a collection agency, a debt purchaser or a factoring company, these parties are persistent and can use legal means or a legal debt collector to settle the debt.
AW Qatar Legal Debt Settlement:
Due to the increasing demand on legal collection, AW Qatar created a business model that implement a reliable, transparent and effective legal service for debt collection cases aligned with legal system in Qatar through the Legal Debt Settlement Service.
AW Qatar offers this service by business oriented Legal Debt Collectors with an extensive record of success rates from 85% to 93% in all legal debt settlement cases over the past 27 years of experience.