Debt Collection Agencies in France
Updated on Thursday 30th May 2019
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Debt collection agencies in France specialize in recovering outstanding debts for their clients. Nevertheless, the services offered by these businesses are not comprised solely of collecting money and assets once the debt is overdue. They can provide a number of other services, tailored to the need of those clients who are looking for solutions in averting outstanding debts or consulting in the credit management scheme
Many debt collection companies specialize both in domestic and international debt collection and will treat each case according to its particularities.
Debt recovery in France is a process that takes place by observing a number of steps and commences with a pre-litigation phase or an amicable phase during which the role of the agency can be to prevent the client from having to go to court. By choosing to work with a team of specialists, like our agents who specialize in debt collection matters, individuals and businesses can recover their due debts much faster and benefit from a number of consulting services in the process.
What are some examples of debt collection services?
We list some of these services below:
- Collection of debts: the core of the activity consists of collecting outstanding debts both in national and international cases.
- Debtor tracking: an agency can provide a comprehensive solution for tracking debtors and maximize the chances of recovery.
- Legal debt collection: when the debt remains unpaid because the debtor is unable or unwilling to, an agent can commence the legal proceedings, when these are the suitable solution.
- Seizure of assets: an agent can oversee the process of attachment that is ordered by a court.
- Consulting services: these are aimed at improving the collection strategy of the client and the credit management scheme.
How does a debt collection agency treat the recovery of outstanding debts?
The debt collection process includes a set of steps that apply in all cases. However, adequate solutions may not be the same in all situations, depending on the debt amount and the situation of the debtor, for example, whether or not the company is insolvent.
In general, dent collection starts with an amicable phase and the debt collection agency assigns an employee who will commence the process starting with sending out the first notification letter. If the debtor responds, the agent can then propose a payment schedule that will fit both the needs of the debtor and those of the creditor. Tracking services are available in those cases in which the debtor can no longer be contacted via the initial contact information or when he has changed the address.
The aim of a debt collection agency in France is, in most cases, to recover the debt out of court. This is preferable not only because the process is faster, but also because it is in the advantage of both the creditor (who will recover his debt faster) and the creditor (who will thus avoid prolonging the debt and increasing its value).
The fees practices by agencies in France can vary and some of them collect their fees after the amounts are collected. When the case is taken to court, the process also includes the legal costs. Most agencies will provide quotas ahead of commencing the process.
Is the use of a lawyer mandatory for debt collection in France?
Legal expertise can be useful both in the pre-litigation phase as well as if or when the case is taken to court and the creditors receive enforcement for a judgment. Having good knowledge of French and EU framework for recovering assets can be essential in many cases, especially those that involve corporate clients and international clients.
Our team of specialists also consists of debt collection lawyers in France, this is why our clients will benefit from the highest degree of expertise and professionalism when requesting our services. When the client/the creditor obtains an enforcement order from a French court or an EU court, a lawyer can help the client follow through with the steps that will allow him to commence the asset collection process. Having legal assistance is important because there are a number of limitations on the seizure of assets. For example, the creditor cannot seize all of the debtor’s assets (such as the goods needed for everyday life and maintenance). In the event in which the debtor appeals the attachment, the aid of a lawyer from our team can be helpful to the creditor.
Working with a team of specialists for debt collection in France is recommended for creditors, whether they are natural or legal persons.
Contact us for more information about the debt recovery services offered by our team.