Get things on the right track

This is how debt collection works

When a claim falls into default, there is a high likelihood that the creditor will seek to recover the amount owed. There are two primary stages of collection: primary and intermediate collection at the earlier stages, and legal collection at the later stages.

During the primary and intermediate stages, a collection warning is sent, most often followed by three additional letters. These letters incur costs, which are added to the claim, along with late payment interest, in accordance with the Collection Act No. 95/2008.

If a claim goes through the entire interim collection process without being settled, the creditor is often forced to pursue legal debt collection, which incurs significant costs. Therefore, it is advisable to settle the claim or negotiate a payment plan before it reaches this stage.

Legal debt collection cases are recorded in Creditinfo’s delinquency register if they meet the necessary criteria. This can affect the calculation of your credit score.

In some cases, claims are placed under monitoring, where they are tracked until the statute of limitations expires. This may impact the calculation of the individual’s credit rating by Creditinfo.

Further information

→ Cost of collection, Motus
→ To obtain information regarding your credit status or any outstanding delinquencies, please contact Creditinfo.