What is the debt collection process? The debt collection process or process of debt recovery in UAE varies depending on your creditor, however in all cases, you will generally expect the following to take place: You receive a written notice from your debtor that your account is past due. Then, your creditor prepares a formal letter for you to sign to request that your debt is removed from your credit report. Your creditor then transfers your account to a collection agency.

How long does the debt collection or legal recovery process last?

Depending on how long your outstanding debts remain unpaid, it could as little as a week or as long as ninety days. After ninety days has passed, the creditor’s letter must be sent. If you do not respond to the letter, then the collection agency is allowed to contact you. If you do respond and pay your outstanding debt, then the collection process is extended until the debt is paid in full.

Who are the collectors?

The debt collection process is administered by individual creditors. However, in some states, all collectors are state employees. Still, most reputable collectors are private individuals working for a debt collection agency. The good news is that creditors usually work only for profit, so they are typically very discriminating when choosing to pursue people for outstanding debts.

Why would a debt collection agency to take action against you?

When a creditor files a complaint against you for non-payment of a debt, he is typically trying to collect at least a part of the remaining debt. This is generally at a discount to the original creditor. If no settlement agreement is reached between the two sides, then the debt collection process begins.

How can you protect yourself during the debt collection process?

Because the process is managed by the lender, a lender has the right to review all communication that you have with him or her, including letters and phone calls. The lender may also choose to go to court and get a temporary restraining order (TRO).

Can you be sued for being late on a payment?

Yes, – when a debtor files a complaint against you, he or she is generally suing you on the basis that you have failed to make payment of a debt. The Fair Debt Collection Practices Act gives the debt recovery agency the right to sue even if you are not sure that the money is legally owed.