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Debt Collection India

April 3, 2011 By mccolrul Leave a Comment

Until the emergence of debt collection business, debt collection in India, was never treated as a specialized job and was always treated as one of the jobs that legal departments of the banks and financial institutions were required to undertake. A typical legal department of an organization would approach the collection job strictly as a legal issue rather than as a revenue collection measure. Litigation would be the only tool used for recoveries and no other tool was either known or used by the industry. Litigation as a recovery measure always had its own limitations due to long and winding court procedures the Indian legal system is always criticized for. On the other hand, foreign banking firms introduced the concept of specialized debt collection services. Debt collection services became one of the many services that began to be outsourced to specialized agencies. The collection business had a very humble beginning and it barely qualified as a specialized service.

However over a period of time with the emergence of India as a global outsourcing destination the domestic businesses also adopted the outsourcing as an efficient business tool. With the result today, the third-party debt collection industry plays an important role in the Indian economy. The industry employs hundreds of thousands of Indians as collection professionals, who are servicing several industries ranging from banks, to telecom service providers to insurance companies. Typically, only small recoveries arising from periodic billing defaults by the customers are outsourced to the collection agencies. Not only the collection business has become a direct source of employment to thousands but its contribution to the economy is more pronounced because it helps infuse money back in the economy that otherwise would have remained uncollected. The economic benefits of third-party debt collection are significant. Citibank is the pioneer in introducing third party collection techniques in India.

The debt collection industry in India also has grown sharply this year as higher borrowing costs; rising inflation and the general slowdown in the economy force more companies and individuals into difficulties. Underlying debt has gone through the roof and lenders and organizations increasingly want to move any bad debt off their books. Whether it is a high street bank, a credit card lender or a mobile phone company, growing numbers are turning to professional debt collectors in a more difficult environment.

The debt collection industry in India is growing at a faster pace and is surely poised for growth. The credit card outstanding have shot up by a whopping 87% at USD 6114 Million during this year, from USD 2844 Million in the period year ago. The Reserve Bank of India (RBI) which regulates the banking industry in the country encourages banks to shift bad loans off their books more quickly because they will be required to hold more capital against risky assets that may default.

COLLECTION INDUSTRY – UNREGULATED SCENARIO

The collection business has its own inherent shortcomings due to unregulated and primitive nature of this business in this country. The persons employed in the industry are untrained both in soft skills and legal skills. Being unregulated, the procedures are not standardized and there are no industry specific checks and balances. Still litigation is used as the last resort tool for recoveries. However the industry has been accused of manipulating the legal system to their advantage by using courts as their agents of recovery. It is seen that big corporations with large volumes of recoveries have unwritten understanding with the local courts at the lowest level. With the patronage of minuscule minority of pliable judges simple civil defaults are registered as criminal cases thus pressurizing the debtors into paying the dues. Slow and long civil recovery court process has no takers in this age of instant results where revenue targets are the most sacrosanct. Under such strict and cut throat environment, there is pressure on the banks to keep their account books healthy therefore such aggressive and extra-legal methods are employed for quick recoveries.

GOVERNMENT / RBI INTERVENTION

Debt collectors in the past had a lot of leeway and it wasn’t uncommon for collectors to embarrass, harass or humiliate debtors by adopting extra-legal measures. In the absence of any regulatory regime the courts had to step in by laying down guidelines for the industry to follow. After the intervention of judiciary, the RBI woke up to the need of regulating the unruly collection agencies and laid down its own guidelines for the banking industry to follow.

The guidelines prescribed by RBI are enforced against the banks that have contractually employed collection agencies. The banks in turn via their contracts with the collection agencies ensure that the RBI guidelines are followed. Now, under the RBI guidelines it is illegal to threaten violence or cause harm to debtor, use obscene language, or repeatedly use the phone to harass debtors. In addition, collection agents cannot seize or garnish a consumer’s property or wages without recourse to court procedure.

The following are few of the core underpinnings of the collection process. These are the norms formalized by the top bank in India – RBI.

1. DSAs/DMAs/Recovery agents to get minimum 100 hours of training.

2. Recovery agents should call borrowers only from telephone numbers notified to the borrower.

3. Each bank should have a mechanism whereby borrowers’ grievances with regard to the recovery process can be addressed.

4. Banks are advised to ensure that contracts with recovery agents do not
induce adoption of uncivilized, unlawful and questionable behavior or recovery process.

5. Banks are required to strictly abide by the codes pertaining to collection of dues.

RBI in the draft guidelines issued for banks engaging recovery agents, has asked banks to inform borrowers the details of recovery agents engaged for the purpose while forwarding default cases to the recovery agents.

The Reserve Bank of India has also considered imposing a temporary ban (or even a permanent ban in case of persistent abusive practices) for engaging recovery agents on those banks where penalties have been imposed by a High Court/Supreme Court or against its directors/officers with regard to the abusive practices followed by their recovery agents. An operational circular in this regard has been issued in November 15, 2007.

Other Laws

Still the non banking debts collection business is outside the purview of any regulator. There are no licenses or registrations to be obtained from any regulator to pursue collection business in India. The extant guidelines applicable to banking industry are found inadequate as they address only the problem of debtors’ harassment and the guidelines do not regulate the industry as such. The Government is well aware of the need of having a specialized legal mechanism for recovery of institutional debts which has become a huge problem for the entire banking industry.

Every bank is grappling with the non-paying accounts, known as Non Performing Accounts (NPA) in the Indian banking parlance. The problem has taken enormous proportion and threatened the economy. Creation of Debt Recovery Tribunals in the year 1993 was a step in the direction of facilitating fast recoveries by the banks . The intention behind creation of such Tribunal was to ensure that banking industry was provided with its own recovery mechanism that was part of the legal system but at the same time exclusive to the banking industry. Bank debts above USD 22,727 could be recovered through the Tribunals.

However, over a period of time it was realized that this new mechanism did not yield the desired result since the recoveries were still slow and due to shear volume of work, the Tribunal became like any other court. The whole objective of having a fast track and efficient recovery mechanism was therefore defeated. Bank debts still remained a major problem to be solved since it affected the entire economy of the country. The Government felt the need of having a mechanism that was minimally dependent on the courts for effecting recoveries since the legal system could not be reformed overnight. Therefore instead of reforming the court procedure the government did some clever thinking and came up with a legislation that minimized the intervention of court and empowered the banks with special powers using which the recoveries could be affected.

The government thus came up with a new law Scrutinization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) where under the banks are allowed to liquidate security given by the borrower for recovery of their dues. This law also paved the way for creation of asset reconstruction companies that take over the security interest of the debtors. These agencies are thus another form of debt collection agencies that have been institutionalized.

The need to share credit information among the banking industry was also felt in order for the industry to benefit from each other. Thus Credit Information Companies (Regulation) Act was enacted in the year 2005.

INDIAN LEGAL SYSTEM AND COLLECTION PROCESSES

The Indian legal system is absolutely fair and assures justice to the party involved. There are remedies available under the law to collect the debt, if the debtor does not agree to pay under normal circumstances. The creditor may file a suit for his recovery. Debts based on written contracts could be recovered by following fast track procedure. If the debtor is a company, creditor / his lawyers may apply in the ‘Company Court’ for winding up of the company due to non-payment of substantial amount of debt. Summary trial is another way. The process may take time-1 to 2 years. Evidences are recorded appropriately and produced in the court of law, whenever required. There is also the arrangement of appeal to be filed at later stage.
US OUTSOURCING SCENARIO

India has attracted many technology jobs in recent years from Western nations, particularly the United States. Now, it is on its way to becoming a hub in another offshore outsourcing area – debt collection. According to the industry report, units of General Electric, Citigroup, HSBC Holdings and American Express have used their India-based staff to pursue credit card debt and mortgage payment by calling defaulters.

US debt collection agencies are the newest to start outsourcing their work to India and are satisfied with the results produced by the polite but persistent Indian experts. After insurance claims and credit card sales, debt collection is a growing business for outsourcing companies at a time of downturn in the US economy when consumers struggle to pay for their purchases.

Debt collection is a vital and growing component of US economy. There is more than .5 trillion in outstanding consumer debt. As a result, the third-party collection industry makes more than one billion contacts with consumers each year. Recently this year, more than .3 billion in debt was returned to creditors.

Indians have the advantage of lower salaries and other expenses, which cut drastically costs of collecting debts. Debt collectors in India cost as little as one-quarter the price of their US and European counterparts and are often better at the job. Many such Indian firms run 24-hour services. Indian debt-collection companies comply with strict regulations on operations in the American and / or European markets.
SUMMARY

India has a long way to go in establishing a mature collection services industry. The collection business needs to be regulated and empowered with legal powers to become an effective tool. Already, there is a realization in the country that court dependant recovery is an inefficient way of way of debt collection. Creation of Assets Reconstruction and Securitization Companies under the SARFARESI Act is a step in the right direction of recognizing debt collection as an independent and specialized business function. While some progress is made for the bank debts but still for a large volume of unrealized non bank debt there are no professionally managed and regulated third party collection service providers. Non bank debts are largely unsecured that makes it even more difficult to realize. No big corporations and business houses are interested in acting as collection agents without there being an attraction of valuable security asset. Lawyers can fill this gap by providing collection services for non bank debts. Indian law does not permit contingency fee that makes the business less lucrative. India is therefore ready to benefit from foreign experience, expertise and ideas to create an efficient debt collection industry of its own at par with global status. This need is more felt now by India due to its global ambitions wherein India must adopt globally recognized practices and models. Transnational businesses need a uniform operating system for seamless transactions. Efficient debt collection industry will only instill confidence in companies doing business with Indian companies. Collection professionals have this challenge facing them of creating an efficient system that reduces people’s dependence on court supported recoveries.

Trustman & Co – A Law Firm at Delhi India for patent, prior art search, patentability search, validity search, real estate, Intellectual property right, corporate law, company formation/ incorporation/ registration, international trade, trademark, real estate, debt collection, credit report, due diligence, legal risk, business law, foreign direct investment, approval / permission to set up business/ company, legal outsourcing LPO
www.trustman.org
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Finding a Collection Agency

April 3, 2011 By mccolrul Leave a Comment

As a possible account ages, the likelihood of collecting in it lower substantially. It’s expensive to hold accounts that you won’t be able to collect making use of the strategies for your use. It occasionally gets a greater use of your company’s serious amounts of resources to focus on other aspects of the business. You may do that by finding a credit manager, to complete the collection operate you have been performing, but as the business grows, you could then have to location the accounts using an outside collection agency. Using a collection agency can be worthwhile for the business and allow you to develop. Some collection agencies charge additional for older accounts; this is certainly since they are considerably harder to collect.

A professional collection service can help you in collecting accounts that stay delinquent. Collectors possess a good understanding of collection techniques, technology and compliance problems. Employing an expert collection service will save you skill and most likely yield greater final results than you can attain in your personal.

When accounts reach 90 to 4 months overdue, it’s time to think about placing them having a collection agency. Some folks location accounts at Two months; some wait over a year-it is fully as much as you. If you ever wait more than per year it truly is unlikely you’ll get paid, but attainable. In the event you are letting one thing sit in your books and grow older devoid of actively pursuing it, it is more than worth it to provide it to a collection agency. It’s not going to obtain collected in the event you maintain it, as well as the percentage you’ll spend the money for agency shall be well worth the money.

Signs which you should hire a collection aagency:

* A brand new consumer doesn’t respond towards the initially letter. For those unknown reason, the client won’t or can’t pay. Possible losses could be kept low by prompt referral towards a collection agency.
* Payment terms fail. In a few scenarios irresponsible consumers pay when when they wish to. This group is responsible for 25 to 50 % of the price of collections. Price and potential losses are reduced by speedy action.

* The consumer makes repetitious, unfounded complaints. Such people are regularly far better handled using a collection agency. You’ve got to come to a decision if this is worth some time or can you rather pay an agency a compact percentage to the time and still get money.
* The consumer completely denies responsibility. Devoid of professional assist, these accounts are typically wiped off as complete losses. At this stage , it really is very good to have a signed credit application or contract as well as, if doable, proof your order and who placed it.
* Delinquency coexists with serious marital difficulties. These also require professional collection help, using the added urgency of obtaining payments ahead of the disappearance of one or both within the responsible parties. If divorced consumers say the other is responsible, get a copy of the divorce decree, that should state who is responsible.
* Repeated delinquencies take place together with frequent modifications of address or jobs. This group is responsible for 90 % of most “skips.” A skip is really a client that has moved with out informing creditors or leaving a forwarding address. The chance of finding a client and collecting a debt will reduce over time, so speedy action is essential. Most agencies supply a skip-tracing service.
* Apparent financial irresponsibility is obvious. In such instances, little hope exists for voluntary payments and a rapid settlement.
* There is an unauthorized transfer or disposal of goods delivered within a conditional sales contract.

The way to Pick The proper Collection Agency Available for you Or Your Business

Look for the agency that’s familiar together with your sort of business. Strong-arm tactics that could possibly function in a single market may perhaps fail miserably together with your market. Acquire an agency that has customers inside your distinct function. Check their reputation and references.
Discover how they collect outstanding debts. When they mostly mail letters, review them initially to see if the clients will probably be receptive directly to them. When they use telephone calls, evaluation their telephone collection scripts. Guarantee they are expert but not harassing.
Ensure the collection agency carriers insurance. Unhappy debtors could really feel it really is their proper to sue annoying collection agencies. An agency with Errors and Omissions insurance can guard you as well as the agency from frivolous suits.
Be aware of the type of debtors you’ve got. If your debtors are primarily individuals, hire a collection agency that are experts in men and women. Or else, look for any collection agency with commercial experience.
Know your debtors’ geographic places. Collection agency licensing is different from state to state. Should you know your debtors are situated in several states, learn when the collection agency can cover a number of states, or if they’ll contract out-of-state debtors to a different collection agency. Ask how that impacts your fees.
Ask how the agency handles skip tracing. In the event the debtor has moved without any forwarding address and disconnected their telephone that usually would end the approach. Skip tracing uses various databases to look for the debtor. Discover that this collection agency utilizes this practice.
Evaluate expenses. Collection agencies either charge for a contingency basis (which signifies they retain a percentage in the amount collected) or over a set fee that may be paid monthly or quarterly. To evaluate expenses, ascertain the quantity of outstanding debt and multiply it by collection agency’s success rate. If the agency provides a 75-percent good results rate and also you turn more than 0,000 in financial trouble, the agency would theoretically gather ,000. One bit of agency is looking for a 22 percent contingency fee, may well obtain ,500. Check in case the contingency fee of 22 percent on the 70 % success ratio is more affordable when compared to a set annual fee.

Operating With a Collection Agency

As soon as you choose using a collection agency, use their types to deliniate accounts or their format to upload accounts electronically. Give as a great deal details as possible-accurate information and facts about the account will improve collections.

Overall instances, the minimum data will need to consist of:

* The appropriate name, address and telephone number of the debtor
* Name on the debtor’s spouse, if applicable
* Whether or not mail has been returned
* Debtor’s and/or spouse’s occupation or last acknowledged occupation and phone quantity
* Names of relatives, pals, neighbors and references
* Summary of any disputes
* Date of final transaction, order or payment
* Cellular telephone, fax, e-mail address
* Nicknames or aliases, maiden name

How It will Influence Your Business

If you choose to change your delinquent accounts more than with a collection agency, be ready with the buyer to contact you. This doesn’t continually occur, however it have been my experience that they will call the business owner to attempt to operate some thing out as soon as the account has long been placed by having an agency. Once you spot the account with an agency, all contacts ought to be referred back towards the agency. If the debtor calls you, show them the account is with a collection agency and they have to give them a call. You possibly can constantly brush heli-copter flight discomfort with the call by saying, “My bookkeeper, accountant, (any individual but you) is handling my accounts plus the policy is anything more than 60 days is placed for collections.” Once you say goodbye, e-mail or call your collection agency and tell them the debtor contacted you. In case you get mail or payments from the debtor, forward them to the agency.

At times a consumer will return back for services or products following they have paid a collection agency. Do not extend credit to this particular client. As soon as you place an account with a collection agency, only accept cash payments up front. That buyer expense you money when they did not pay their bill; if he or she still purchase from you and must pay cash, you might possibly recoup your losses.

How Collection Agencies Receives a commission

Most collection agencies charge a commission or percentage depending on the numerous variables with the accounts they are wanting to collect. Some agencies charge a set monthly fee, and some charge per letter or call.

One bit of agency charges a commission, it’s going to typically certainly be a percentage for “standard” accounts. That will be accounts which are possibly 60 days old, have a fantastic address and phone quantity, and the debt is probably collectible. My collection rate was 25 % once i owned my agency. Which was for everyday accounts my customers placed. Should they had your free account that had been below or more than one year old, I charged a 50-percent commission. As i had a big client putting numerous accounts weekly or monthly, We’d allow them to have a particular flat rate of 18 percent on all accounts overall.

Some agencies charge you a flat bill every month according to the number of accounts you location, how often you location them, the dollar amounts, and age. Additionally they may charge per letter or per phone call and allow you to determine how often of every. Collection agencies may possibly also supply other paid services in the flat rate. Verify out their internet sites and compare to see just what typical fee structure is and what matches your needs plus your business.

If you need more information on financial collection or if you would like to hire a collectiom agency visit Williams, Cohen and Gray Collection Agency


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Global debt collection in Israel / GCS Israel

April 3, 2011 By mccolrul Leave a Comment

Introduction:

 

v  Debt collection around the world

v  Global Credit Solutions (GCS)

v  The Globe as a small global village.

 

During this article I will discuss the debt collection possibilities in every corner of the world, excluding only countries like Somalia, Zimbabwe and other countries in the third world.

 

Link to the original article “Global debt collection in Israel”

Link to the Global debt collection section in Bar el  & Co, attorneys at law, web site.

 

 

The GCS corporation, of which our office is the Israeli partner, specializes, among other things, in debt collection around the world and employs over 3,000 staff in more than 85 countries around the world. Among GCS clients are governments, banks, insurance companies and leading global corporations.

 

In fact there is almost no leading firm in the world, from banking through electronics to agriculture, who doesn’t make use of GCS debt collection capabilities somewhere in the world.

 

Difficulties in collecting worldwide debts:

v  Time, calls and manpower cost

v  Locating a reliable debt collection agency or a law firm

v  Very high costs for Legal Services

v  Differences in language and culture make it difficult to reach an agreement

v  Compromising  relationships with the client abroad

v  Political problems between countries

 

The difficulties in collecting debts outside of one’s own country are apparent. Many country exporters are frequently faced with the problematic unavoidable need to collect debts in another country. We discovered that in many cases a lot of them simply quit the debt collection procedures and declare the debt as lost, even when the debts amount to a substantial amount of money.

 

The time spent on collection calls, for E-mail correspondence and other actions against the debtor is exhausting and frustrating, especially when you examine the manpower costs and the waste of time and nothing appears to happen – the debt is still outstanding.

 

From our experience, and this is true for any company in the world, when the debtor company is still solvent, many times the debt, outside the debtor country, is simply the last priority in the payment order – frequently at the end of the list.

 

The difficulties intensify when the creditor company has no choice but to use legal consultation abroad. Then there are two critical difficulties: the first is to even locate a local collection agency or a law firm that you can depend on. The second problem, no less significant, are the costs. Our experience shows that a foreign company pays, almost always, in average 50% (at least) more, in addition to the ongoing expenses.

 

Frequently, a difference in language and culture will create misunderstandings and not understanding the basic legal procedures in the debtor’s country, prevents reaching a settlement even when the differences are quite simple. Sometimes, a mere misinterpretation or a simple disagreement will prevent reaching a settlement and a successful debt collection.

 

Sometimes, and I must say that this is typical not only for for Israeli exporters there are political problems between the creditor and the debtor company. When Israel had political disputes with Turkey for example, there was a significant rise in debts not paid by Turkish companies to Israeli exporters.

 

GCS Concept of global debt collection:

Before we will present the solution for global debt collection problems, and since GCS is actually one of the world’s largest debt collection companies, we will try explain the debt collection potential in the world with the systemic approach, developed by GCS over the years.

 

The global marketplace is divided into seven (7) collecting areas, North America, South America, Asia Pacific, Western Europe, Eastern Europe, Africa and the Middle East. There are now 85 countries represented by GCS partners worldwide with several more under consideration and undergoing due diligence

 

All cases are entered into and managed by the unique GCS Global Case Management System (GMS) The collecting data arrives and is managed in real-time. As a matter of fact, this data enables GCS to assess, in a relatively accurate way and with combining other relevant information, determine what is the debt collection state in the countries serviced.

 

It is no secret that in the world today changes in the economy of one country, small like the default monetary planning of the Greek government, or large like the Subprime crisis in the USA, directly effects the entire world and as occurred during 2009 resulted in a worldwide financial crises – which is usually followed by many debt collection problems.

 

If we consider only the narrow area of debt collection possibilities in a chosen country, the risk analysis is relatively clear. We should take into consideration a few key factors. Among them are the overall payments morality and the debt collection system in the country we are interested in. China for example has no specific laws that regulate debt collection, the lawyers and the debt collection agencies use different “basket” laws to help them in collecting debts there.

 

The government type is also a factor to consider, Venezuela under the leadership of Hugo Chaves makes it very difficult for citizens and companies to purchase US Dollars and transferring them out of the country is even more difficult. Obviously there are other factors to consider like the country culture, awareness to the importance of export etc.

 

The solution for international debt collection problems

 

v  Use a debt collection agency or lawyer with a proven reputation and years of experience in debt collection problems, in almost in every country in the world.

v  The Debt is “close” – the demand to pay is from a domestic lawyer within the country of the debtor.

v  No restriction on the debt amount to collect. No costs at all – No collect No fee.

v  Debt collection with no risk or damage to business relationships between the client and the debtor.

v  Saves the client time, manpower and costs.

 

The solution for all international debt collection problems is simple and easy.

 

In fact when we present it, we always encounter a surprised reaction resulting usually from a lack of knowledge.

 

As mentioned above GCS operates threw 100 partners in more than 85 countriesworldwide, employing more than 3,000 employees. Debt collection agencies or the lawyer that operates as a GCS partner, has an impeccable reputation and years of experience in debt collection problems in their own countries.

 

One of the great advantages is that there is no minimum debt for GCS to collect and we operate on a No collect No fee basis.

 

The strict ethics and best work place practices adopted by GCS partners are to ensure the collection process, at least until the court gates, is not too aggressive, and maintains a professional and courteous relationship and image.. The partners do all they can to insure that the relationships between the client and the debtor is not damaged, nevertheless the collection process is strict and professional.

 

All GCS partners live, feel and breath the collection procedures and problems in their own country. From our experience an approach from a domestic lawyer, or collection agency, completely changes the debtor state of mind about the debt. Suddenly the debt is “close” and the priority of paying it increases.

 

The collection process usually includes a notice letter, conversation with the debtor and meetings to conclude terms payment.

 

When some kind of an offer is on the table the GCS partner informs the client and asks for his approval or input.

 

After the settlement is agreed by both the client and the debtor, an agreement is signed and the debt amount is paid to the client.

 

When there is no agreement, or when the collecting process is stuck, the domestic GCS partner presents the client with all the legal possibilities, for him to decide, if he prefers to take legal procedures against the debtor.  The GCS partner provides the client with all the costs, legal probabilities and the possibilities for collecting the debt after a court sentence is reached. After the decision is made, the law suit is usually filed in a matter of few days.

 

The efficiency of legal procedures changes from country to country. Naturally, the legal procedures in Western Europe are far more efficient and therefore effective then countries in South America or Africa for example.

 

Transferring debts for collection with a “click”

 

v  Starting to collect any amount, anywhere in the world in minutes.

v  Work on the case starts within 24 hours.

v  Getting regular updates and reports on the collecting progress.

 

How things actually work:

 

In most of the cases, the minimum information needed for starting the collection process anywhere in the world is: details about the client, details about the debtor including name, address and telephone, the amount of the debt and some supporting documentation regarding the debt (such as purchase order and copy communications with the debtor) together with an invoice, judgment etc. Obviously the more data there is on the debt, the better and it will be easier to locate the debtor and confront him with the debt.

 

As I mentioned before GCS partners operate on No collection No fee basis. The collecting rates are agreed upon before working on the case so there are no surprises, and a Letter of Authority is countersigned by b oth parties to protect the client’s interest.

 

All the data can be transferred by email, and usually there is no need for the original documents.

 

The case is immediately transferred to a global secure internet system and the collecting partner can view the case and start the collecting procedure without delay. GCS protocol demands that the partner accept or reject the case within 24 hours.

 

After accepting the case the client receives updates from the partner handling the case, and sometimes there may be a need for additional information or documents like POA etc.

 

The communication between GCS partners is direct and immediate and on any given time or place partners can communicate from the GCMS collecting system or via the phone to receive updates on the case.

 

Global debt collection system

 

v  The GCMS system – secure global internet debt collection system used by more than 100 GCS partners all over the world.

v  Complete transparent history of the case debt collection process with record maintained for all time.

v  Regular updates to the client – management reports available as required.

v  Storage of all the information regarding the case in one place.

v  Financial records in any currency.

 

GCS is the first and only company which has developed and operates a global collection system that connects all the GCS partners around the world – The GCMS is a web based, fully secured site that provides an automatic environment for management of any debt, anywhere in the world.

 

The GCMS system enables GCS partners to manage the collection cases without any need for a separate internal system. The partners feed in to the system all the information about the case, including all the details of the client and the debtor, money transfers, documents, full history and collection processes, etc. the system can provide reports on demand, which can be sent to the client.

 

Being a browser based technology process, the system can be accessed from anywhere in the world. It is transparent to the partners and GCS management.

 

GCS developers are now working on a possibility for clients to enter their cases directly from the system.

 

The collection process worldwide:

 

v  Locating the debtor including solvency check.

v  Notice letter and conversation with the debtor.

v  Finding out the reason for not paying the debt.

v  Trying to avoid legal procedures and get to an agreement.

v  Drafting an agreement with the client and the debtor.

v  If the collecting process is stuck, starting a legal procedure after the clients’ approval.

 

The debt collection procedures are developed and run by the GCS partners according to the specific country’s laws and culture, but the overall protocol is similar.

 

Whereas usually companies do not want to “burn the bridges”, and they are interested in continuing the business relations with the debtor in spite of the problems. The collecting procedures, at least until the court gates, are not too aggressive and the approach, although they use a firm professional legal language, takes into consideration the gentle delicate fabric of business relations that needs to be preserved.

 

Nevertheless and to remove any doubt, when the collecting process is stuck or when the debtor is refusing to pay, there is no choice other than to commence legal procedures and the approach changes to aggressive and swift legal actions in order to collect the debt as fast as possible.

 

When the debtor has left their last known address there is always a possibility to locate him – the procedure is simple and usually in a short while the partner has all the debtor contact information.

 

The initial contact with the debtor is made by the partner with a notice letter and/or telephone conversation. Usually the partner or his employee will meet with the debtor in an effort to resolve all problems that arise. The aim is to find out the reason for not paying the debt and try to reach an agreement, which will be acceptable by the client.

 

The great advantage of notice letters, conversation and meetings with a domestic law firm or collecting agency is in, that on the one hand the partner knows exactly how to approach the debtor, and in the other hand, suddenly the debt is “close”. The client is no longer distance creditor that may or may not reach the debtor, now there is a domestic lawyer that immediately can start legal actions. The debt is now higher in the debtor priorities then it was before.

 

In conclusion:

 

To sum up’ we can say that the global village we live in is getting smaller and smaller, and contrary to what you may think, the global debt collection possibilities are simple effective and with very small costs – as simple and effective as domestic debt collection. From our experience the success chances are not much different.

 

When a company is outsourcing global debt collection to an experienced professional debt collection agency all the problems and difficulties are being handled by professionals and your problems simply disappear. There are no costly lawyer fees, not to mention having to try and locate a domestic law office or collection agency that you can depend on.

 

As GCS partners have great experience in debt collection procedures in their own country ensuring the debt collection procedures are much faster and hassle free.

The fact that there is no minimum debt amount and that you can transfer any debt for collection, anywhere in the world in one email and get regular updates, makes the global debt collection procedures just as simple as collecting debts in your own country.

 

As court procedures are usually very expensive, GCS partners are instructed to try do all they can to settle debts outside of court, Usually convenient payments or forfeiting some of the interest (with the client consent) can help incentivize the debtor to sign an agreement and pay the debt. If there is no other way the partners are ready to go to court, within a few days.

 

As we see it is absolutely amazing that you can access a global network of thousands of employees, global internet systems, years of global debt collection experience and credibility and so much more All of that with no costs or any risk.

 

If the debt is not collected – NO FEE

 

If the debt is collected the fee is usually not much more then you are paying for domestic debt collection fees

 

 

Bar el Yaron, advocate

Bar el & Co, attorneys at law

Global Credit Solutions, Israel


 

Our office is located in the diamond exchange bourse district in the City of Ramat Gan. We are committed to provide a high quality, reliable and professional legal counseling, as well as offer our clients a personal and unique service focusing on the special needs and, requirements of each and every client. Our firm provides legal counseling and representation in the fields of Israeli law, Commercial law, Joint Ventures and investments, Investment’s relationships, Real-Estate transactions, Assets management, Contracts and agreements, Simple and complex civil claims, debt consolidation, bankruptcy and creditor arrangements.


Article from articlesbase.com

Follow me on Twitter twitter.com Dvd Collection update for June 10th 2009 showing the dvds Ive gotten over the last 2 weeks. In the update I talk about and give my reviews of the dvds and the movies themselves. The Dvds I got and Review in this update are: * Rugrats the complete 1st season : Featuring the voice talents of Melanie Chartoff, Michael Bell, Kath Soucie, Christine Cavanaugh, Elizabeth Daily, Cheryl Chase and Jack Riley * Spring Breakdown : Directed by Ryan Shiraki – Starring Amy Poehler, Parker Posey, Rachel Dratch, Amber Tamblyn, Seth Meyers, Sophie Monk, Jonathan Sadowski, Missi Pyle and Jane Lynch * Seems like old times : Directed by Jay Sandrich – Starring Goldie Hawn, Chevy Chase and Charles Grodin and Judd Omen * Canadian Bacon : Directed by Michael Moore – Starring John Candy, Alan Alda, Rhea Perlman, Kevin Pollak, Rip Torn, Kevin J. O’Connor, Bill Nunn, GD Spradlin, Steven Wright, James Belushi, Brad Sullivan and Wallace Shawn * Mum and Dad ( Mun & Dad ) : Directed by Steven Sheil – Starring Perry Benson, Dido Miles, Olga Fedori, Ainsley Howard, Toby Alexander and Micaiah Dring * The X files season 1 and 2 dvd set – Starring Gillian Anderson and David Duchovny * Star Trek the Orginal Series best of set : Starring Leonard Nimoy, William Shatner, DeForest Kelley, Nichelle Nichols, James Doohan, Eddie Paskey, Bill Blackburn and George Takei * Star Trek The next Generation best of set – Starring Patrick Stewart, Jonathan Frakes, LeVar Burton, Marina Sirtis …
Video Rating: 4 / 5

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