Bank customers often think that if they borrow small amounts, they are not in danger of being late or having no repayments at all. In reality, however, it looks different, so it’s worth knowing what steps a loan company can take.
- I do not pay back payday loans – what threatens me?
- What can the payday debt collector do?
- What actions cannot a debt collection company take?
I do not pay back payday loans – what threatens me?
Both the advantage and the disadvantage of payday loans are that they are easily accessible. Why? Virtually anyone can get them – even indebted and unemployed people. Money is usually gained on the same day, which can be a rescue in case of emergency. But due to the fact that loan companies usually do not verify anything more than an ID card when granting payday loans, this option is used by people who do not intend to settle their debt.
There is often a belief that they are safe. In practice, however, it is different – a Bank may even one day after the repayment date, initiate a procedure to recover funds. The internal debt collection department can take care of it or it can be outsourced to an external company. And the costs of starting debt collection are charged to the customer.
However, to know your rights, find out what can and should not be the debt collector.
What can the payday debt collector do?
At the beginning it should be noted that the bailiff and debt collector are not the same professions. The bailiff is a government official who only begins enforcement proceedings when he receives a court order. On the other hand, the debt collector is an employee of a private company whose task is to recover the debt. Unlike the bailiff, he does not have legal means to achieve this goal.
In the first stage, the debt collection process is “mild” for the debtor. What does it mean? Contact by letter, phone or email with a client of a Bank, an attempt to persuade him to voluntarily pay off the liability. He may also visit him at his place of residence, although whether the debtor must let him in, we will write in a moment.
When this does not help, the customer is usually entered in the register of debtors, which can have more serious consequences for him – it will make it difficult to purchase equipment in installments, even a mobile phone from the operator. As a last resort, the debt collector may institute legal proceedings, although it should be noted here that further enforcement actions are already carried out by the bailiff.
What actions cannot a debt collection company take?
And this actually ends with the entitlements of the debt collector. It should be noted that companies dealing with this type of activity often exceed the scope of their rights, often violating the law. Therefore, the debtor should know what the debt collection company cannot do.
Although the local debt collector can visit the debtor at his place of residence, he cannot enter the property without his consent – even with the police. He must not be threatened in any way (including threatening to start legal proceedings).
In addition, few people know that the debt collector is not entitled to seize a bank account, eviction from premises or seizure of any property of a person who does not pay payday pay – if it is committed, it is treated as a crime. He must also not disclose information about the state of his property, debt to unauthorized persons,