Phone Collection vs Home Collection: the most effective recovery

Phone Collection vs Home Collection: the most effective recovery

One thing is certain with regard to debt collection: what matters most to the creditor is to recover his credit as effectively as possible, without incurring extra expense.

In Italy, there are about 1500 Credit Recovery Agencies (source infoimprese – code ATECO 82.91.1), between individual companies and companies (of people and capital) usually more structured.

The majority of companies, which operate in the delicate Credit Recovery sector in Italy, would prefer the recovery of credits related to the financial sector, utilities and telecommunications, mainly characterized by low values ​​and lower seniority, compared to commercial ones.

Only 10% of the Credit Recovery Agencies operating in Italy would be specialized in the recovery of commercial credits, deriving from economic relations between companies and usually characterized by values ​​and seniority greater than credits of different nature.

Entrepreneurs know full well that not applying for the recovery of corporate debts, in Italy, can constitute a crime.

The failed attempt to collect its own credits, in fact, can constitute the crime of distraction, punishable by the bankruptcy laws, which also provide for an accessory penalty of disqualification from the exercise of management offices for ten years (see Judgment 32469 of 25 / 07/2013 of the Court of Cassation which confirms the sentence pronounced by the Court of Appeal of Milan against three entrepreneurs accused of having significant responsibilities in relation to a huge corporate collapse).

It is in this scenario that, sometimes, the creditor is forced to choose between phone collection and home collection.

The phone collection, the telephone solicitation, a genuine attempt at amicable resolution, is usually among the first operational phases, together with a first epistolary solicitation, to be carried out, as an essential action in an extrajudicial collection process. As a rule, the phone collection activity is sufficient for low value and relatively recent credits.

The home collection, or home collection, usually carried out door to door, is instead an activity in which the professional figure of the debt collector comes into play, often a real negotiator of problem loans and is carried out, as a last resort, in the case in which the value of the credit justifies the higher costs and the longer times of extrajudicial recovery. It is never advisable to attempt a home recovery, without having first updated the information for the debtor.

For more information call EUROCREDIT BUSINESS INFORMATION at +39 02 36707160 or fill out the contact form that you find by clicking here