:

LEGALCITY shows you the pitfalls to avoid in debt collection:

LEGALCITY shows you the pitfalls to avoid in debt collection:

Beware of the absence of written proof!

Written proof is essential to quickly and easily validate the existence and creation of a claim.

Without written proof, collecting your debt becomes considerably more complicated, and Legalcity's agents will have to work with you to find ways of drafting an application for an injunction to pay that will not be rejected. This is why it is essential to avoid the debtor's contestation at all costs.

Example: if a debtor disputes a claim or invoice, the absence of written proof of the debtor's claim will complicate the validity of the unpaid claim.

In accordance with the provisions of article 1341 of the French Civil Code1, you must provide proof of the completion of an order or service in order to claim payment.

What are the associated risks and how can they be countered?

The absence of written proof necessarily leads to legal complications for the creditor.

There are bound to be delays in processing payment claims.

It is therefore advisable to keep all documents and exchanges (e-mails, Whatsapp, SMS, etc.), as well as signed contracts, signed quotations, agreements and delivery notes.

Remember to get your customers to confirm their orders or requests by any means! Even for the most loyal customers...

Beware of limitation periods!

If you don't follow up quickly, your unpaid bill will become statute-barred!

Article 2224 of the French Civil Code stipulates that the limitation period is five years for BTOB claims and 2 years for BTOC claims.

The simplest solutions for dealing with limitation periods!

The consequences of prescription are quite simply the extinction of the claim and the impossibility of taking legal action.

So it's vital to analyze your customer's ageing balance to avoid this situation.

Don't let your unpaid receivables drag on until the statute of limitations has expired.

Sending a letter of formal notice can help, but it's best to be accompanied by an amicable or judicial collection agency and an agent whose day-to-day job it is.

LEGALCITY is a recognized out-of-court and in-court collection agency and a benchmark in this sector.

Avoid mistakes when sending your letter of formal notice.

LEGALCITY is a debt collection agency that complies with all legal requirements for collecting debts on behalf of third parties.

Debt collection is a regulated business.

So, if you entrust your collection to our firm, the formal notice, which is a crucial stage in the collection process, will be secure and will enable you to safeguard your rights.

It will comply with all the legal texts in force, avoiding you the failure of a legal collection procedure.

The Letter of Formal Notice contains a number of essential elements.

Your formal notice letter must meet the requirements of article L111-1 of the French Consumer Code.

Forgetting one of the requirements, or drafting it incorrectly, can have unfortunate consequences.

Don't systematically rely on sample letters downloaded from the Internet or taken from reminder software.

A debt collection agency such as LEGALCITY is covered by civil liability insurance, and our debt collectors guarantee strict compliance with the requirements and guidelines of the French Consumer Code.

Beware of abusive collection fees!

It is possible to engage in the process of collecting unpaid invoices yourself.

However, it should be noted, for example, that collection costs cannot be charged to the debtor.

What's more, it's not uncommon for the courts to penalize creditors who charge and demand abusive fees.

Assistance from a collection agency is necessary to ensure that the procedure is not terminated due to non-compliance with collection rules.

Possible sanctions and legal limits.

Article L111-8 of the French Code of Civil Enforcement Procedures sets out the framework for collection costs.

Failure to comply with this text may also result in the creditor being penalized.

When legal proceedings are involved, professional assistance should be strongly considered.

Why not neglect the follow-up?

A 100% digitized law firm like LEGALCITY offers you a client space that enables you to follow the progress of your cases live, and also gives you access to all the documents resulting from the proceedings.

Everything is digitized, so you can talk to an agent and find out at any time how your file is progressing.

Make sure that the professional you use allows you to consult your collection file at any time.

Rigorous organization and follow-up of your collection files.

Only a regular, rigorous and organized follow-up of your files can enable you to understand the progress and chances of success of your collections.

Your LEGALCITY customer area is 100% digitized and connected to your billing and accounting tools.

LEGALCITY's partner Commissaires de Justices also have access to your file and regularly update all actions in progress.

The same applies to out-of-court collections, since you have access to the entire procedure, as well as to the status of your debt collector's actions.

Conclusion

In short, debt collection is a complex process that requires careful attention to a number of legal and administrative aspects.

The absence of written proof, non-compliance with the statute of limitations, errors in the formal notice of default, abusive collection fees and negligent follow-up are all pitfalls to be avoided to guarantee effective collection... By adopting a rigorous and organized management approach, and complying with the legal provisions in force, companies can improve their chances of collecting their receivables efficiently and in compliance with the law.