Debt Recovery Agencies in Dubai were created to pursue debts on behalf of clients by employing techniques to extract debt. These agencies try to recover the debt without the involvement of legal action and court orders, but if required an attorney may also take legal action to recover the debt.
Functions of debt collection agencies include:
- Tracing creditor: Debt collection agencies in UAE will work with the creditors to obtain necessary information before seeking out the debtor. Creditors typically have access to a computer database made available by credit bureaus. The information available in the database can be used to find debtors. They can also conduct searches on debtors’ assets to determine a debtor’ capability to repay debt.
- Negotiating: Most debt collection agencies spend the majority of their time on negotiating with an aim to recover debts. They also provide solutions to debtors who are financial difficulties to pay outstanding debts. Debt collecting agencies may negotiate payments and settlements on behalf of creditors. They can develop and recommend payment plans to eliminate debt which are manageable for the customer, preventing the account from falling into delinquency again.
- Systematic follow-up: They also provide debtors with methods of repaying debt using installment plans and educate them about how to avoid making debt and manage it.
- Maintaining records: Debt collection agencies in UAE keep records of all communications including agreed settlement and payment plans made through phone. Many collection agencies use proprietary software to manage customer records and ensure that records entered are accurate throughout the collection process.
Methods of debt collection agencies to recover the debt
- Freezing accounts: if a debtor has savings account in any financial institutions a debt collection agency can serve the bank with a notice to freeze the account of the debtor. Once the account is frozen, the debtor is given limited time to justify the debt. If a proper justification is not received then the money starts to get deducted from the account until the debts are not paid.
- Property as security: In case the debtor has property, it can be used as a security until the debt is fully paid. However, there are stricter regulations for selling personal assets to repay debt.
- Wage garnishment: The most common method to recover debt this can be applied when the debtor has a job. Collection directly contacts the employer and the money is deducted from the paycheck of the debtor.
Reliefs provided to debtors by the debt collection agency
Below mentioned reliefs are offered by debt collection agencies while negotiating the payment settlement with the debtors
- Extended payment terms
- Offering Discounts
- Reduction of the debt amount
Debt collection agency in UAE:
A debt collection agency offers company and individual professionals in collecting outstanding debts. HHS lawyers advise debtors on debt collection settlement We at making deliberate attempts to obtain amount past due. If you are facing any debt collection contact us.