All about the amicable debt collection procedure

What are the advantages of such a procedure?

In a collection procedure, the amicable approach is the first obligatory step. Its objective is to remind the debtor of the existence, the nature and the importance of his debt by telephone, electronic or mail reminders. What are the advantages of the amicable preliminary collection procedure and the conditions of its efficiency?

Amicable debt collection is a process that gives the creditor the opportunity to use all legal procedures in order to obtain from the debtor the payment of his debt. Thus, any creditor who is unable to obtain payment of his debt, whether he is a borrower, an economic operator, a lessor or a merchant, can initiate an amicable collection procedure to achieve voluntary repayment.

The creditor can choose to carry out these actions internally or to mandate an amicable debt collection agency. If the amicable collection attempt fails, the creditor can initiate a seizure procedure or a judicial collection procedure. It should also be noted that by using a specialized company, the creditor can take advantage of all the advantages of amicable collection, which is a prerequisite for any legal action.

Amicable collection: a simple and effective process

The amicable collection procedure starts with the sending of a reminder letter to the debtor, often accompanied by a telephone call and an email. It is either a simple letter or directly a formal notice addressed to the debtor and which gives him a fifteen days deadline to pay his debts without any other procedure being engaged against him. The formal notice can also be sent by other means (SMS, e-mail, fax, etc.).

It should be noted that the amicable collection by mail from a company specialized in the field has a formal and solemn character with an authentic value that gives a superior weight and legitimacy to the reminder.

Amicable collection also promotes better relations between the creditor and his client. When the amount is justified, the creditor can propose a schedule to his client in order to allow him to progressively repay his debts.

Why entrust the collection of your debts to a specialized firm?

It is often wise to outsource debt collection procedures to a specialized structure. Prior to any legal proceedings, the latter will effectively accompany you in the process of amicable collection of all your debts. The use of its services has real advantages.

1/ Maintaining good customer relations

A company specialized in debt collection offers strategic advantages necessary to maintain a better business relationship. The use of a firm specialized in debt collection gives seriousness and neutrality (the intercession of a third party in the arrangements) to your amicable collection process.

2/ Fast and low cost recovery

In its collection approach, a specialized firm implements important financial, material and human means in order to allow you to focus on your job. According to the amounts to be recovered in the arrangements with the customers, the cabinet can implement various methods and procedures whose combination is sometimes necessary in order to gradually increase the constraint at the debtor. This improves the collection in terms of efficiency and rate.

Firms specializing in debt collection thus apply a more dynamic management approach to bring the debtor to repay the amounts due. Before reaching the legal notice of default, they contact the defaulting debtor several times through progressive procedures (mail, telephone, email, written notice of default etc.).

2/ Your rights preserved

It should also be noted that the use of a firm specialized in debt collection ensures the guarantee of your rights. For this purpose, protective measures are opened on the assets of your defaulting payer. In addition, you will not be charged any fees in case of insolvency of your debtor or failure to collect your debt.

Finally, it is important to remember that legal proceedings should only be used as a last resort if you want to protect the image of your business.

Find out more about our out-of-court collection service here

Going further:

Practical files by economie.gouv : https://www.economie.gouv.fr/dgccrf/Publications/Vie-pratique/Fiches-pratiques/recouvrement-creances

Article on amicable collection: https://www.economie.gouv.fr/dgccrf/recouvrement-amiable-des-creances