How should an amicable debt recovery procedure be conducted?

When aprivate individual or a credit companyis confronted with thenon-paymentof one or moreinvoices, that person or company will initially seek to recover what is due through anamicable debt recoveryprocedure. In this article you can discover the different steps likely to be involved in anamicable debt recoveryprocedure.

1. Letter of reminder, Formal notice

The first step of anamicable recoveryis the sending of aletter of reminder, a final noticeaddressed to the debtor, before any subsequent action that might be taken. Such service of final notice must always contain all information concerning the debt:

• The identity, enterprise number, address, telephone number and professional capacity of the creditor;
• The name, designation, address and contact details of the supervisory body in FPS Economy, SMEs, Middle Classes and Energy;
• The clear description of the obligation from which the debt has arisen;
• The clear description and justification of the amounts claimed, including claimed damages and damages for late or overdue payment (moratory interest);
• The warning that, failing reaction within a certain period of time, the creditor may proceed to other means of recovery. That period is not less than two clear weeks, commencing as of the date of dispatch of the formal notice. Before the end of that period recourse may also be taken to other techniques of recovery falling within the amicable phase.

For more information do not hesitate to consult our article onmodel letter of reminder for payment.  

2. Reminder by telephone

If theletter of reminder, theformal noticedoes not elicit any useful reaction on the part of the debtor, thereminder by telephoneoften proves to be an efficient way to enter into direct contact with the latter. Generally speaking, the main purpose of thereminder by telephoneis to allow you to identify thereasons for non-payment of the invoiceby your debtor. However, the telephone reminder must at all times respect certain codes so as to be relevant and effective. To find out more you can read our article ongood practices for successful telephone reminders. 

3. The home visit

If all at-distance efforts to recover a debt, such as sending reminders and telephone messages are unproductive, thevisit to the debtor’s homeis often thefinal amicable attemptbefore suggesting legal proceedings. Contrary to received wisdom, thehome visitis often perceived by the debtor as the opportunity to explain himself in the matter of the unpaid invoice. Many of them will even use this last chance to settle the amount that is demanded from them. Home visits at best allow collection of the unpaid invoice and at least allow assessment of the chances of obtaining such payment in future.

4. Conclusion

It can be seen that there are numerous procedures for seeking to obtain theamicable recoveryof a debt. InTCM Belgiumwe always favour amicable solutions. Also, and by way of example, only1%of cases assigned to us actually require the introduction oflegal recovery proceedings. This is clear proof thatamicableprocedures are quite effective and are indispensable remedies when confronted with an unpaid invoice situation.

When aprivate individual or a credit companyis confronted with thenon-paymentof one or moreinvoices, that person or company will initially seek to recover what is due through anamicable debt recoveryprocedure. In this article you can discover the different steps likely to be involved in anamicable debt recoveryprocedure.

1. Letter of reminder, Formal notice

The first step of anamicable recoveryis the sending of aletter of reminder, a final noticeaddressed to the debtor, before any subsequent action that might be taken. Such service of final notice must always contain all information concerning the debt:

• The identity, enterprise number, address, telephone number and professional capacity of the creditor;
• The name, designation, address and contact details of the supervisory body in FPS Economy, SMEs, Middle Classes and Energy;
• The clear description of the obligation from which the debt has arisen;
• The clear description and justification of the amounts claimed, including claimed damages and damages for late or overdue payment (moratory interest);
• The warning that, failing reaction within a certain period of time, the creditor may proceed to other means of recovery. That period is not less than two clear weeks, commencing as of the date of dispatch of the formal notice. Before the end of that period recourse may also be taken to other techniques of recovery falling within the amicable phase.

For more information do not hesitate to consult our article onmodel letter of reminder for payment.  

2. Reminder by telephone

If theletter of reminder, theformal noticedoes not elicit any useful reaction on the part of the debtor, thereminder by telephoneoften proves to be an efficient way to enter into direct contact with the latter. Generally speaking, the main purpose of thereminder by telephoneis to allow you to identify thereasons for non-payment of the invoiceby your debtor. However, the telephone reminder must at all times respect certain codes so as to be relevant and effective. To find out more you can read our article ongood practices for successful telephone reminders. 

3. The home visit

If all at-distance efforts to recover a debt, such as sending reminders and telephone messages are unproductive, thevisit to the debtor’s homeis often thefinal amicable attemptbefore suggesting legal proceedings. Contrary to received wisdom, thehome visitis often perceived by the debtor as the opportunity to explain himself in the matter of the unpaid invoice. Many of them will even use this last chance to settle the amount that is demanded from them. Home visits at best allow collection of the unpaid invoice and at least allow assessment of the chances of obtaining such payment in future.

4. Conclusion

It can be seen that there are numerous procedures for seeking to obtain theamicable recoveryof a debt. InTCM Belgiumwe always favour amicable solutions. Also, and by way of example, only1%of cases assigned to us actually require the introduction oflegal recovery proceedings. This is clear proof thatamicableprocedures are quite effective and are indispensable remedies when confronted with an unpaid invoice situation.