Out of court collection
Purpose: to recover the entire sum due to the client in the shortest possible time and using the most effective collection tools for the given debt category.
Out-of-court collection is a service composed of a comprehensive set of activities performed and debt collection tools used. Through out-of-court collection, KRUK International handles debts at every stage of delinquency and with various status:
- before litigation
- with a writ of execution
- after ineffective enforcement by a bailiff,
- previously handled by other debt collection companies.
Each receivables portfolio accepted for collection is subjected to an analysis ending in the selection of appropriate collection tools and in the establishment of a suitable collection process, taking into account the following:
- type of product submitted for collection (e.g. loan, bank account, invoice),
- debtor profile,
- stage of delinquency,
- account status (e.g. before litigation, following ineffective collection by a bailiff),
- amount of the receivable,
- client’s requirements.
KRUK’s fees depend exclusively on the effectiveness of its collection activities and on the value of amounts recovered. KRUK International does not charge any upfront fees for accepting a debt for collection. For each debtor category, a unique cycle of debt collection activities is prepared. For each cycle, the number of telephone calls to be made is determined, the number of letters to be sent as well as the number of visits to be paid by field collectors.
Additionally, when we start services for a new client, we jointly agree the detailed principles concerning the manner and frequency of exchanging information (including updates on payments from debtors, reporting, providing security for the submitted data as well as the scope of collection activities to be carried out).