10 prohibited practices of debt recovery

Contrary to what one might think,debt recoveryis a real discipline that is subject tonumerous rules. Thecollection companiesare legally obliged to respect them. It is also important to stress that these rules and theseprohibited practicesapply not to thecollection agenciesbut also, quite simply, to any person urging a debtor to settle hisunpaid debtsamicably.       They therefore apply to:

• the creditor himself
• to any intermediary (e.g.:collection company, lawyer, bailiff,…)

TCM lists and describes for you10 prohibited practicesinamicable debt recovery.

1. Creating a confusion

Thecollectormay notcreate the least confusionand must therefore be completely transparent as regards its capacity ofcollector of debts. More specifically, this means that any behaviour or written communication that might give the wrong impression of its being a document from an official or legal institution or from a lawyer is strictly forbidden. Thecollectormust therefore give sign of recognition in its interactions with adebtor.  

2. Visits or telephone calls between 20:00 and 08:00 hrs.

Nuisance practicessuch as visits to the debtor’s home andtelephone callsmade between 20:00 and 08:00 hrs. are strictly prohibited.  

3. Harassing a debtor who challenges the debt

If a debtor has expressly made it known that he challenges the debt claimed from him (for reasons of proof we advise you to do this by registered letter) and has stated his reasons, he may not be harassed and the only solution of forrecoverywould then belegal recovery. For this it is of course necessary that the reasons given are well-founded and admissible in court.  

4. Mentioning the debt on the envelope

In order, among other things, torespect the debtor’s privacyit is also prohibited for a collection company to mention on the envelope sent to the debtor that the correspondence relates to recovery of a debt.  

5. Attempted recovery in the presence of a third party

Thecreditororany person assigned to recover the debtmay not confront the debtor with his debt in the presence of a third party without his prior consent.  

6. Approaching persons close to the debtor (neighbours, family, friends, employer, …)

Thecollectoralso does not have the right to approach the family, neighbours or employer of the debtor to communicate or obtain information concerning the debtor’s solvency or recovery of the debt concerning him.  

7. Attempted recovery from a person other than the debtor

This might appear obviousbut the collector is prohibited from attempting to recover an amount from a third partyhimself owing money to the debtor in question. For example, the creditor or the agent may not attempt to recover its debtor’s debts through his employer.  

8. Collection of amounts not provided for

In arecovery of a debt, the amounts claimed by thecollectormust have been initially agreed in the contract binding thecreditorto hisdebtoror provided for by the law. By way of example, the amounts claimed must be precisely specified and clearly determinable on simple reading of the contract of general sales conditions and accepted by the debtor.  

9. Use of inaccurate legal threats

Any person urging thedebtorto settle his unpaid debtsamicably, or out of courtdoes not have the right to use legal threats that he may not lawfully apply. By way of example, ifa collection companythreatens to seize the debtor’s furniture while only abailiffin possession of awrit of executioncould be authorized, it potentially exposes itself to heavy penalties.  

10. Demanding transfer of debt or recognition of debt

Thecollectordoes not have the right to demand that the debtor should sign atransfer of debtor arecognition of debt. Nor may he slyly camouflage it by linking it to a payment system.   You understand thatrecoveryis a closely regulated discipline inBelgium. Thecreditoror itsagentmay not engage in “just any old practice” to collect the amount that the debtor owes him. The debtor’sprivacyand personal information are protected by law. It must however be said that this strict regulation has a positive impact ondebt recovery in Belgium, since the supervisory Authority has recorded only a negligible number of complaints in relation to the number of current files.

10 prohibited practices of debt recovery

Contrary to what one might think,debt recoveryis a real discipline that is subject tonumerous rules. Thecollection companiesare legally obliged to respect them. It is also important to stress that these rules and theseprohibited practicesapply not to thecollection agenciesbut also, quite simply, to any person urging a debtor to settle hisunpaid debtsamicably.       They therefore apply to:

• the creditor himself
• to any intermediary (e.g.:collection company, lawyer, bailiff,…)

TCM lists and describes for you10 prohibited practicesinamicable debt recovery.

1. Creating a confusion

Thecollectormay notcreate the least confusionand must therefore be completely transparent as regards its capacity ofcollector of debts. More specifically, this means that any behaviour or written communication that might give the wrong impression of its being a document from an official or legal institution or from a lawyer is strictly forbidden. Thecollectormust therefore give sign of recognition in its interactions with adebtor.  

2. Visits or telephone calls between 20:00 and 08:00 hrs.

Nuisance practicessuch as visits to the debtor’s home andtelephone callsmade between 20:00 and 08:00 hrs. are strictly prohibited.  

3. Harassing a debtor who challenges the debt

If a debtor has expressly made it known that he challenges the debt claimed from him (for reasons of proof we advise you to do this by registered letter) and has stated his reasons, he may not be harassed and the only solution of forrecoverywould then belegal recovery. For this it is of course necessary that the reasons given are well-founded and admissible in court.  

4. Mentioning the debt on the envelope

In order, among other things, torespect the debtor’s privacyit is also prohibited for a collection company to mention on the envelope sent to the debtor that the correspondence relates to recovery of a debt.  

5. Attempted recovery in the presence of a third party

Thecreditororany person assigned to recover the debtmay not confront the debtor with his debt in the presence of a third party without his prior consent.  

6. Approaching persons close to the debtor (neighbours, family, friends, employer, …)

Thecollectoralso does not have the right to approach the family, neighbours or employer of the debtor to communicate or obtain information concerning the debtor’s solvency or recovery of the debt concerning him.  

7. Attempted recovery from a person other than the debtor

This might appear obviousbut the collector is prohibited from attempting to recover an amount from a third partyhimself owing money to the debtor in question. For example, the creditor or the agent may not attempt to recover its debtor’s debts through his employer.  

8. Collection of amounts not provided for

In arecovery of a debt, the amounts claimed by thecollectormust have been initially agreed in the contract binding thecreditorto hisdebtoror provided for by the law. By way of example, the amounts claimed must be precisely specified and clearly determinable on simple reading of the contract of general sales conditions and accepted by the debtor.  

9. Use of inaccurate legal threats

Any person urging thedebtorto settle his unpaid debtsamicably, or out of courtdoes not have the right to use legal threats that he may not lawfully apply. By way of example, ifa collection companythreatens to seize the debtor’s furniture while only abailiffin possession of awrit of executioncould be authorized, it potentially exposes itself to heavy penalties.  

10. Demanding transfer of debt or recognition of debt

Thecollectordoes not have the right to demand that the debtor should sign atransfer of debtor arecognition of debt. Nor may he slyly camouflage it by linking it to a payment system.   You understand thatrecoveryis a closely regulated discipline inBelgium. Thecreditoror itsagentmay not engage in “just any old practice” to collect the amount that the debtor owes him. The debtor’sprivacyand personal information are protected by law. It must however be said that this strict regulation has a positive impact ondebt recovery in Belgium, since the supervisory Authority has recorded only a negligible number of complaints in relation to the number of current files.