| "Out of court" Collection |
Creditreform puts all efforts to collect your outstanding amounts through a network of offices and partners in the country and abroad.
For the bad debt recovery Creditreform Romania applies Creditreform Germany's know-how, methods checked over a 120 years practice period, by which the debtors are convinced to fulfil their duties on amiable way.
Among the advantages of the debt recovery on amiable way are to be mentioned the followings:
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Avoiding the legal way that is extremely long lasting and involves high costs for taxes and lawyers. |
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Low case processing costs |
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The success commission is due only for the recovered amount. |
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Flexibility in establishing the recovery ways: payment terms or phasing agreed by both parties, return of the goods (if possible), a.s.o. |
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Shorter period for the recovery of the debt compared to the legal way. |
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The cases are accepted only after a detailed analyze of the debtor to see if the debtor still exists (it is not under liquidation or bankruptcy procedures) and which are the real recovery possibilities on amiable way. For the Romanian debtors this analyse is performed free of charge by Creditreform Romania.
If after this analyse we consider that the amiable way will not bring any results, we recommend to our customer to go on the legal way. Before starting the suing proceedings, Creditreform will supply to its customer an evaluation of the costs involved by the legal way.
In keeping with the Creditreform Association's principles, we are not taking over the cases where the debtors were already sued and we are not interfering in the money circuit meaning that the debtor will pay directly to his creditor.
The rate of the success-solved cases on amiable way is approx. 45% of the total number of cases handled.
The costs involved by our collection services in Romania are:
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Handling fee - to be paid after the signing of the collection order and the "Terms for debt collection". This fee depends on the amount to be recovered, is negotiable and is paid one time for a case. |
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Success commission - to be paid after the recovery of the debt, for the recovered amounts |
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If the out-of-court collection proves impossible, Creditreform offers lawyers, working for the organisation or its partners. Clients enjoy preferential lawyer’s fees. During the course of court collection, Creditreform co-ordinates and controls all steps undertaken by the lawyers, duly informing the customers for the development of the cases.
