How do debt collection companies advertise? Watch out for catchy ads.

A debt collection company will reward you for repayment in installments, 

A debt collection company will reward you for repayment in installments, 

The Polish debt market is growing every year. At the end of 2016, the total outstanding debt amounted to USD 53.69 billion. Creditors, mainly banks, loan companies, including payday loans, are increasingly selling receivables by passing them on to debt collection companies.

On debt collection, limitation of claims and court cases.

On debt collection, limitation of claims and court cases.

Debt collection companies will soon have to face the plans of the Ministry of Finance, which assume shortening the basic period of limitation of claims from 10 to 6 years. This is also reflected in the courts, which have been flooded with tens of thousands of new claims for a long time. It is worth knowing that several million lawsuits are submitted to the electronic court itself each year !

You can see that this is an escape from the new regulations. From the first signals in the media, associated with shortening the limitation period and changing the formula for taking this into account ex officio, the courts are feeling the increased impact of lawsuits. Some companies come to clients with the option of signing a settlement to confirm the debt.

What is debt marketing and how does it work on potential debtors?

What is debt marketing and how does it work on potential debtors?

The strategy of a good marketer is to change the customer’s attitude to the debt collection company. Then precise and quick access to the debtor as a result of paying off the liability. How do they do that The human psyche responds positively to the slogans of debt collection companies: we postpone, convenient repayment in installments, get rid of debts, etc., so that the debtor himself shows willingness to pay the debt, using the right tools.

Internet, TV and social media advertisements (Facebook, Instagram, Twitter) are designed to guide the debtor through the entire debt repayment process – from arousing the desire to repay the debt on their own, contacting a debt collection company, by making a decision to sign a settlement agreement, until repayment debt.

To make it before the new regulations, companies are pushing as many cases regarding old debts as possible to the courts. Each signed settlement with a debt collection company is associated with the acceptance of the debt. Why are debt collection companies so willing to “postpone”? ?

About the number of payment orders already issued.

The Ministry of Justice announced its ideas regarding the limitation period for debts in February 2017. In the first half of 2017. courts issued 0.5 million more orders than a year ago (53% increase) in civil cases. In economic cases, the number of issued orders increased by 75 thousand. (increase by 42%).

If we compare the data for the entire 2016 and 2017, there is an increase of 726 thousand. (34%) in civil matters and about 140,000 (42%) in business matters. Of course, not all payment orders relate to expired claims, but it seems natural to correlate changes in law and the transfer of claims to the judicial stage.

Why debt collection marketing? Some debtors are aware of the debt, but are also aware of the frequent dishonesty of debt collection companies, ways of debt collectors, their rights and obligations. Most cases handled by investment funds and debt collection companies are not supported by relevant documents, contracts and legal provisions. Many clients complain about payment orders issued by courts in response to objections or charges against the order for payment.

Marketers from all sides are trying to warm up the image of a debt collection company. On the internet, they create a company that is exceptionally friendly, pleasant and always willing to settle. We already know why.

TV commercials show interviews with satisfied debtors, who managed to “get rid of” ? thanks to the debt-spreading arrangement (sic!). As on the basis of non-existent or incomplete documents, we are supposed to pay overdue, repaid and artificially created debts.

What rights do I have as a debtor? Why should you think twice before signing a settlement with a debt collector or debt collection company?

The purpose of the debt collection company is to make the debtor willing to repay the debt and is only part of the process. The next step is to quickly provide documents to sign a settlement that is unilateral.

You do not have to agree to the conditions of the debt collector and debt collection – in principle, often the best solution is to bring cases to the judicial stage. Many popular debt collection companies send settlement proposals to the debtor. The debtor leaning against the wall with a dozen or so telephones a day, often from different phone numbers, emails, sms about the visit of debt collectors at home or in the workplace, often decides on unfavorable solutions.

Why debt collection on TV and the Internet?

Because, as a rule, original creditors do not assert claims that have expired, they only sell them to debt collection companies, putting the loss in costs. The companies that bought them for a fraction of the value may therefore have a problem.

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