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How should an amicable debt recovery procedure be conducted?

When a private individual or a credit company is confronted with the non-payment of one or more invoices, that person or company will initially seek to recover what is due through an amicable debt recovery procedure. In this article you can discover the different steps likely to be involved in an amicable debt recovery procedure.

1. Letter of reminder, Formal notice

The first step of an amicable recovery is the sending of a letter of reminder, a final notice addressed to the debtor, before any subsequent action that might be taken.

Such service of final notice must always contain all information concerning the debt:

  • The identity, enterprise number, address, telephone number and professional capacity of the creditor;
  • The name, designation, address and contact details of the supervisory body in FPS Economy, SMEs, Middle Classes and Energy;
  • The clear description of the obligation from which the debt has arisen;
  • The clear description and justification of the amounts claimed, including claimed damages and damages for late or overdue payment (moratory interest);
  • The warning that, failing reaction within a certain period of time, the creditor may proceed to other means of recovery. That period is not less than two clear weeks, commencing as of the date of dispatch of the formal notice. Before the end of that period recourse may also be taken to other techniques of recovery falling within the amicable phase.

For more information do not hesitate to consult our article on model letter of reminder for payment.

 

2. Reminder by telephone

If the letter of reminder, the formal notice does not elicit any useful reaction on the part of the debtor, the reminder by telephone often proves to be an efficient way to enter into direct contact with the latter.

Generally speaking, the main purpose of the reminder by telephone is to allow you to identify the reasons for non-payment of the invoice by your debtor. However, the telephone reminder must at all times respect certain codes so as to be relevant and effective.

To find out more you can read our article on good practices for successful telephone reminders.

 

3. The home visit

If all at-distance efforts to recover a debt, such as sending reminders and telephone messages are unproductive, the visit to the debtor’s home is often the final amicable attempt before suggesting legal proceedings.

Contrary to received wisdom, the home visit is often perceived by the debtor as the opportunity to explain himself in the matter of the unpaid invoice. Many of them will even use this last chance to settle the amount that is demanded from them.

Home visits at best allow collection of the unpaid invoice and at least allow assessment of the chances of obtaining such payment in future.

4. Conclusion

It can be seen that there are numerous procedures for seeking to obtain the amicable recovery of a debt. In TCM Belgium we always favour amicable solutions. Also, and by way of example, only 1% of cases assigned to us actually require the introduction of legal recovery proceedings. This is clear proof that amicable procedures are quite effective and are indispensable remedies when confronted with an unpaid invoice situation.

How should an amicable debt recovery procedure be conducted?

When a private individual or a credit company is confronted with the non-payment of one or more invoices, that person or company will initially seek to recover what is due through an amicable debt recovery procedure. In this article you can discover the different steps likely to be involved in an amicable debt recovery procedure.

1. Letter of reminder, Formal notice

The first step of an amicable recovery is the sending of a letter of reminder, a final notice addressed to the debtor, before any subsequent action that might be taken.

Such service of final notice must always contain all information concerning the debt:

  • The identity, enterprise number, address, telephone number and professional capacity of the creditor;
  • The name, designation, address and contact details of the supervisory body in FPS Economy, SMEs, Middle Classes and Energy;
  • The clear description of the obligation from which the debt has arisen;
  • The clear description and justification of the amounts claimed, including claimed damages and damages for late or overdue payment (moratory interest);
  • The warning that, failing reaction within a certain period of time, the creditor may proceed to other means of recovery. That period is not less than two clear weeks, commencing as of the date of dispatch of the formal notice. Before the end of that period recourse may also be taken to other techniques of recovery falling within the amicable phase.

For more information do not hesitate to consult our article on model letter of reminder for payment.

 

2. Reminder by telephone

If the letter of reminder, the formal notice does not elicit any useful reaction on the part of the debtor, the reminder by telephone often proves to be an efficient way to enter into direct contact with the latter.

Generally speaking, the main purpose of the reminder by telephone is to allow you to identify the reasons for non-payment of the invoice by your debtor. However, the telephone reminder must at all times respect certain codes so as to be relevant and effective.

To find out more you can read our article on good practices for successful telephone reminders.

 

3. The home visit

If all at-distance efforts to recover a debt, such as sending reminders and telephone messages are unproductive, the visit to the debtor’s home is often the final amicable attempt before suggesting legal proceedings.

Contrary to received wisdom, the home visit is often perceived by the debtor as the opportunity to explain himself in the matter of the unpaid invoice. Many of them will even use this last chance to settle the amount that is demanded from them.

Home visits at best allow collection of the unpaid invoice and at least allow assessment of the chances of obtaining such payment in future.

4. Conclusion

It can be seen that there are numerous procedures for seeking to obtain the amicable recovery of a debt. In TCM Belgium we always favour amicable solutions. Also, and by way of example, only 1% of cases assigned to us actually require the introduction of legal recovery proceedings. This is clear proof that amicable procedures are quite effective and are indispensable remedies when confronted with an unpaid invoice situation.

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