International Debt Collection Laws

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International Debt Collection Laws

Are you in a situation where you are owed money by someone that lives outside of your country? Do you feel hesitant to collect your debt due to the distance and the various laws and regulations that apply to collecting overseas debts?

Do not fear, as you are not alone in this. Over our long history, we have worked on behalf of a large number of clients who have shown hesitation when met with International Debts.

In this article, our team of expert overseas debt collectors have put together some guidance on the various International Debt Collection Laws and how they may impact the collection process.

Firstly, however, it is important to understand the process of International Debt Collection.

It is always recommended to try to contact your overseas debtor first before attempting to collect the debt on your own terms.

There are various things that could hinder the communication process with an international debtor, such as time differences and language barriers. This is something to bare in mind if you have not received payment or have not been emailed back.

Although, if it comes to the point where your client is showing no intentions of paying, this is the time to get in contact with a professional International Debt Collection Agency.

Industry specialists, such as ourselves, are experts at dealing with debts on an international scale. Not only this, but throughout years of demonstrated experienced, we have all the knowledge and tools available to overcome any hindrances during the collection process.

When it becomes clear that you need to instruct an International Debt Collection Agency, the collection process will start as soon as all correct information is passed over to the team. Following a full assessment of the information, we will then tell you whether or not the debt is recoverable.

International Debt Collection Laws have been known to cause a variety of challenges to those that are not familiar with dealing with them. This usually results in the unnecessary wasting of both money and valuable time, one more reason to use the professionals.

International Debt Collection Laws – What You Should Know

For debts that need to be recovered internationally, there are, like all aspects of business, going to be different laws and regulations that are applicable in every country.

These rules may come in different forms such as how the debt collection process may be carried out, how the debtor should be treated and so on.

It is worth noting that there is no such thing as “International Debt Collection Law” as a whole, as these are regulated on a national level.

For example, in most European countries, permission is required for a third-party organisation to collect a debt on behalf of someone who is owed money.

This is to protect the debtor from unlawful practices that may be used by the “cowboys” of the industry.

These laws and regulations may change the way that common legal proceedings are carried out in various countries, meaning more time may be spent on this if the debt recovery process turns to the courts.

The most important thing to remember when it comes to International Debt Collection Laws is that, depending on the country, this may affect the timescale in which the debt can be recovered. Legal proceedings overseas may take a lot longer than you are used to, so this is something to bear in mind.

International Debt Collection Law – Statute Barred Debt

The one regulation that is statutory, regardless of where the debtor is located, is known as a “Statute Barred” Debt.

In the United Kingdom, the term ‘Statute Barred’ refers to a debt that has been left for a long period of time and is now unrecoverable. The time in which a debt can still be recovered is six years.

This is outlined under the Limitation Act 1980, and the six-year period starts from the last known payment or acknowledgement of the debt. However, there are exceptions to the six-year rule.

The exception come into play when ANY acknowledgement of the debt is made within the time frame by either party. This will reset the six-years, and the acknowledgement can be anything from a letter to an email.

Internationally, however, there are various parameters that will change depending on the country the Statute Barred Debt originates from. For example, in places like California, debts have a recovery period of 4 years (if it is written) and 2 years (if it is verbal).

This is why it is imperative to not hesitate with or prolong the chasing and recovery of an International Debt. If you leave it too long you may end up never getting your money back and valuable resources will be wasted along the way.

International Debt Recovery Agency – What To Do Next

If you are suffering with problem debtors that are based overseas, the only true solution to getting your debt collected is to go through the professionals.

At FM International, we have a long and demonstrated history collecting International Debts for our large portfolio of clients.

Our team of highly-efficient and pro-active International Debt Collectors provide a truly cost-effective service that is unrivalled across the globe. With partners all over the world, we are able to carry out the most effective International Debt Collection solution for our clients.

Some of the major benefits to instructing us to recover your debts are:

• We allow you to grow your organisation and maintain cashflow.
• It is our job to collect International Debts – we are the experts!
• Industry-high recovery rates and low commission rates.
• We will ensure to keep customer relationships intact.

Do not hesitate to get in contact with our team today as to not prolong the recovery of your debt.

For Commercial Debts that are based in the UK, visit our Commercial Debt Collection website.