What must I do if I receive a payment demand?
Read the letter carefully to check if there is a legal relationship of any kind (e.g. subscription, public utility contract etc.) between you and the creditor. If there is, review all invoices/payment orders you have received from the creditor to verify that you paid all your liabilities in due time. If your records show that the debt specified in the payment notice has already been paid, forward the corresponding certificate (e.g. registration slip, bank order slip etc.) to the creditor or the accounts receivable manager. If your records confirm that your liability is overdue indeed, pay your debt by the deadline indicated in the notice or contact your creditor/accounts receivable manager to arrange a repayment scheme, if necessary.
What is accounts receivable management?
The scope of workout management covers all activities carried out by creditors or their commissioned agents (such as specialised accounts receivable management companies) in order to collect overdue debts. After reviewing the payment capacity and willingness of the debtor, a payment scheme will be worked out, if necessary, and the debt will be collected out of court using the means allowed by applicable legislation. A significant benefit of such a collection for the debtor is that he or she may reach an agreement with the creditor without any considerable legal costs being added to the original debt.
What can happen during accounts receivable management?
The accounts receivable management company will contact you, as debtor, via letter, phone, or in person, with a view to the smooth and prompt settlement of your debt. The company will always strive to find a solution to the matter that is optimal for the Parties. The company performs its cooperation obligation by providing accurate and professional information, offering payment easement, or agreeing to a payment scheme.
How did the accounts receivable management company learn of your debt?
Remember that your creditor is the holder of a claim against you. Consequently, your creditor may decide to handle this claim personally or commission a third party to do so. The creditor may also decide to assign the claim to a third party, so that the third party becomes entitled to enforce the assigned claim as the new holder.
Are the data processing activities and other operations of the accounts receivable management company legal?
In fact, the accounts receivable management company has numerous titles to process personal data. First, personal data may be processed with the consent of the person concerned. Second, there are situations where data processing is authorised by law (e.g. Article 157 paragraph (9)(a) of Act C of 2003) even without the consent of the person concerned. Such situations include where data processing is necessary to enforce the lawful interests of a third party (see Articles 5(1) and 6(1) of Act CXII of 2011). The accounts receivable management company processes personal data with the approval and consent of the National Authority for Data Protection and Freedom of Information.
Why were you served a payment notice?
A payment notice may be sent if you have an overdue debt toward a creditor. The payment notice serves as a reminder for you that you have a payment obligation under a legal relationship with the creditor and that you have failed to perform this payment obligation in due time. The creditor also informs you in the notice about the possible legal consequences of non-payment.
Why is it important for you to contact the accounts receivable manager after receipt of a payment notice?
At one point or another in life, anyone may have to face temporary or permanent difficulties, even without it being anyone’s fault. The best thing you can do is to face the problem and take action right away. Your cooperation is the key to the solution. It is of utmost importance for you to contact the accounts receivable manager as soon as possible with a view to collecting accurate information on the title and amount of the debt, to learning about your options regarding the smooth settlement of the debt (workout), and to raising your objections or payment difficulties, if any, in order to find a solution that suits you the best.
How to settle your debt?
You may pay your debt in one sum or, under a separate agreement, in instalments to the creditor or the accounts receivable management company. The payment may be made in cash at their customer service department, through the post by using the transfer order attached to the payment notice, or via bank transfer. Please note that if you pay your debt in instalments, any failure on your part to make a payment in due time may result in the entire amount of the debt becoming due and payable in one sum. Please adhere to the terms and conditions of your payment scheme to the letter in order to avoid any such difficulty.
What happens if you don’t pay your debt?
If you do not pay your debt, the creditor becomes entitled to punish your breach of contract (e.g. to restrict your outbound calls or turn off the heating) as the first step. If your debt remains unpaid, the creditor becomes entitled to cancel your contract with immediate effect. This also means that all your debts become due and payable in one sum and immediately. If even the workout process fails to deliver results, the creditor becomes entitled to take legal action and has recourse to the power of the state to enforce its claim.
What procedures may be launched against you by the creditor?
The method most frequently used by creditors against non-paying debtors is a payment order procedure. This procedure falls within the competence of public notaries. If the debtor does not raise any objection against the claim specified in the payment order by the applicable deadline, the order becomes final and – just like court judgements – may be enforced by the power of the state. Please remember that having recourse to such measures may increase the amount of your debt significantly, as – depending on the outcome of the proceeding – you may be obliged to pay all procedural duties, late interest, and attorneys’ fees. In the course of a judicial enforcement procedure, the bailiff may – among others – seize your regular income, collect from your bank accounts, foreclose your vehicles and other movables in your apartment, or even sell your property by auction. Without prejudice to the above options, a company may also have to face liquidation proceedings. The competent court may order the liquidation of an indebted company after establishing its insolvency. If you are the representative of a business association, please note that the Court of Registration will terminate the company and delete it from the register after the completion of the liquidation proceedings.
What should I do if I have any complaint?
If your debt has already been paid, please send us a copy of the payment slip or transfer confirmation to any of the contact points indicated in our letter, with reference to our file number. Please also provide your phone number so we can inform you about any progress in your case, if necessary. If you need any information concerning the debt, do not hesitate to call our collection centre to speak with a designated and competent administrator.
