Debt recovery SolutionS

International debt collection laws

Primarily, we should note that there are no international laws that regulate debt collection. In other words, none of the countries has adopted special documents that establish rules for international debt collection activities and prohibit actions against the debtors.

So, are there any legislative acts that regulate the international debt recovery?
Yes, the laws of the country, where the debtor is located, are applied for activities of international debt collection agencies. This is the reason why most international companies choose local representatives for entrustment of debt collection claims.

Not only substantive law but also the procedures of the debt collection regulates by domestic legislation. For example, laws of each particular country set particular requirements to the document that serves as proof of the debt collector's authority to collect the outstanding amount.

However, you should remember that generally there are common rules on how the debtor must be treated in every country. Such actions like threats of violence, late and weekend calls are strictly prohibited and may cause even criminal prosecution for such agencies.

Belgium Debt Collection Laws

Debt Collection in Belgium can be a challenge for international debt recovery. In order to collect the debt, you must be registered with the FPS Economy, which means that it is impossible to act without the registration.

Doing business and collecting in Flanders, Belgium's Dutch-language province is somewhat like doing business and collecting in the Netherlands. Similar situation with the business and collection activity in Wallonia, Belgium's French-language province – payment culture can be compared to France's one.

As in other European countries, in Belgium the procedure is similar, first of all, you send two demand letters. If there is no response from the debtor, there will then be a follow-up telephone call to see why payment is not being made. This telephone call also serves to work out a payment schedule with the debtor. If the debtor still does not pay, then sends an advisory letter. This informs the client about possible legal measures, the costs involved, litigation risk, and makes a recommendation.

The attention has to be paid to the privacy of the debtors. Data protection laws do not aim specifically at debt collection, far from that. But this set of regulation ensures that personal data is treated with respect for the citizen's privacy; also, when the citizen is the debtor.

Netherlands Debt Collection Laws

The process of debt collection in the Netherlands goes through two phases: the extra-judicial and the judicial. The main difference between the two phases is that the latter involves the court, which may result in rising costs.

International debt collection in the Netherlands generally involves issuing written demands and follow up correspondences through phone, fax, and emails with the debtor. This phase attempts to pressure the debtor into yielding and making the payment(s) required to satisfy your claim. As this process does not involve the courts, it is the cheapest and the quickest way to resolve issues of debt, and the majority of debt recovery claims in the Netherlands are resolved during this stage.

Ireland Debt Collection Laws

The international debt collection procedure in Ireland is strictly regulated so that it ensures a fair result for both the creditor and the debtor. In Ireland, outstanding amounts of money can be collected by private agencies, but also by financial institutions. However, most of the times, private agencies will complete such activities.
The regulations, which need to be respected by debt collection agencies in Ireland, are very well defined, while the actions they can take to recover debts are subject to concrete steps.

Norway Debt Collection Laws

International debt collection may only be conducted by business entities that are in the register of business and are licensed. Obtaining reliable financial information on domestic companies is easy as transparency over information, companies, stakeholders and financial records is generalized. Amicable settlement opportunities always ought to be considered as an alternative to formal proceedings.
Norway is a part of the European Economic Area Agreement, therefore, most EU regulations are now implemented in Norwegian law.

Portugal Debt Collection Laws

Portugal has settled several rulings for international debt collection that brought several rules that should guide creditors in exercising their legitimate right to recover the debts without harming the debtor's integrity.




The Portuguese debt collector is trying to receive payment from the party by "out of court" actions. Typical actions in the amicable stage are sending "letters of demand", calling or visiting the debtor. Ordinary Portuguese collection agency on in this stage only threatening the debtor with legal action.

Cyprus Debt Collection Laws

Before forwarding the issue to an authorized court, collection agency attempts to resolve the debt recovery in Cyprus through out-of-court negotiations.

There are some forbidden practices in the international debt collection procedure in Cyprus for a collection agency or lawyer to use in his attempt to determine a debtor to pay its dues. It is forbidden for a collector to use abusive language, to make public a list with the debtors (even though he can provide this information to other agencies) or to harass the debtor with numerous phone calls.

Also, the international debt recovery agency cannot use false statements in its attempts to recover the dues or using another identity. Accusations of any kind cannot be addressed to the debtor. The creditors cannot send a notification that looks like official documents, cannot give false information regarding the debtor to other international collection agency or use a false company name.

Tunisia Debt Collection Laws

In Tunisia, during the debt collection (amicable) phase, it is prohibited to transfer any amount of interest or costs that do not correspond to those mentioned in the contractual documents, even if both parties agree. The only transferable sums are limited to the value of the goods indicated on the invoices. Consequently, interest and costs are not transferable to the creditor, even if agreed by both parties. It only becomes possible to transfer the interest and contractual indemnities resulting from the agreement of the parties in the frame of legal proceedings.

Czech Republic Debt Collection Laws



The international debt collection process starts with the reminders to make the payment, which are usually sent to the debtor before the court proceedings start but are not necessary according to the law.

However, without sending the reminders, the creditor is not entitled to obtain legal costs from the debtor.

Reminders also increase the chance of collecting money in an amicable way. If the claim is not settled, legal action may be issued.

Greece Debt Collection Laws

The international debt collection is regulated by local law in Greece. The interesting fact that the local law allows creditors to charge an automatic interest rate of approximately 7% - 8%. During the extrajudicial stage, a letter of demand will be sent to the debtor by a collection agency. In this letter, a detailed analysis of the total amount outstanding (including the interest and all the additional costs) has to be displayed.

Spain Debt Collection Laws

There are two possibilities for international debt recovery in Spain: the out-of-court or extrajudicial procedure or the court procedure. From a cultural point of view, Spanish debtors are not used to paying late payment interest or international debt collection costs at the amicable phase, and the actual amount of the interest payment is considered as a matter of negotiations.

Turkey Debt Collection Laws

Only the lawyers shall provide pre-legal and legal international debt recovery services in Turkey. Nevertheless, there is no such authority or institution in Turkey that provides a certificate or license for so-called international debt recovery agencies/debt collectors.

Morocco Debt Collection Laws

In Morocco charged interest to debtors is calculated from the base rate set at 6% by the Bank Al-Maghrib, plus two points.

Moroccan debtors are used to paying late payment interest, though often the actual amount of the interest payment is considered as a matter of negotiations between debtors and international collection agency.

International debt collection costs are chargeable to debtors, provided that the creditor has entered into a special contractual agreement.This can be taken into account as long as the debtor actually agreed to the terms.

South Africa Debt Collection Laws

In South Africa, in order to conduct debt collection activity, the company should be registered. The South African prescription period (statute of limitation) is normally three years from the date, upon which the debt becomes due and payable (in case of dishonored cheques, it would be six years).

Interest can be charged according to the National Credit Act, which defines invoices as an 'incidental credit' because the charged interest becomes due only if the debtor fails to pay for the goods and services after a certain period. In accordance with the prevailing act, the interest allowed is 2% per month.

Germany Debt Collection Laws




In the international debt collection procedure in Germany, the first extra-judicial attempt to recover debts is the amicable procedure, in which the creditor notifies the debtor about the unpaid debts, the deadline to fulfill the payment and the consequences for not obeying to the claim in the specified time and situation.


It is important to note that the debt collection procedure in Germany can be completed only by an international collection agency or a law firm.

Poland Debt Collection Laws

In Poland, the law establishes that a pre-trial procedure is mandatory, which mainly consists of the amicable settlement between the parties. In this sense, the creditor has to inform the debtor several times and by multiple means (letters, e-mails, and faxes) about the debt.
It is established by the local legislation that it is compulsory to inform the debtor about the existence of the debt, even if the activity is performed by the international debt collection agency, before the trial.

Romania Debt Collection Laws



In Romania, international debt recovery procedures depend on the specifics of each case.

It may be conducted via a prejudicial manner regardless of the value of the sum being sought.

But most cases require the court proceeding for international debt collection. There are no debt collection regulative rules in Romanian law.

Georgia Debt Collection Laws





In Georgia, most international debt recovery matters are resolved during the prejudicial phase, without court intervention.

However, the international debt collection process is not regulated by some specific legislative acts.

Switzerland Debt Collection Laws

The procedure for international debt recovery of finances under the Swiss law is unusual in that forced execution is possible based simply on claims from the alleged creditor, without the need to present documentary evidence.
Consequently, the alleged creditor does not need to be in possession of any specific title to begin the international debt collection procedure.

Mauritius Debt Collection Laws

In Mauritius no special requirements to the international debt recovery activity by the local laws.

However, recovery of the state debts is regulated by the particular law, prescribing the procedure and special aspects.

The most unique for the debt recovery in Mauritius is an opportunity to use the services of the private investigators (detectives) in order to find information about the debtor, it is movable and immovable property and monetary assets.

United Kingdom Debt Collection Laws

In the UK, a third-party international debt collection agency that pursues debts regulated by the Consumer Credit Act must be approved and regulated by the Financial Conduct Authority.

The FCA sets guidelines on how debt collection agencies can operate and lists examples of unfair practices. It should be noted that creditors are given a fixed period of six years to chase their debtors, and after this time, it is no longer possible to pursue their debts.

The first stage of legal action is the issuing of a letter before claim. This is a letter sent to the debtor from the solicitor, informing them that should they do not make payment in full, legal proceedings will be commenced.

Italy Debt Collection Laws

According to the Civil Code, the prescription period of credit is ten years, which can be interrupted by the creditor or by the international debt collection agency, which represent the interests of the client, notifying the debtor about the interruption of the prescription and asking for payment.

For contracts of carriage, the prescription period is one year, and for transport contracts from a non-European country, the prescription period is 18 months. It should be mentioned that Italy does not have any requirements for conducting an international debt collection activity.

France Debt Collection Laws


In France, the prescription period is five years, which may be interrupted by the undertaking of a legal proceeding.

If the amicable phase of international debt recovery process fails to bring results, there are two types of legal procedures: the regular lawsuit procedure and the legal dunning procedure, which is used when the amount of the debt is fairly modest and not disputed - it allows to obtain an injunction against the debtor without the presence of the debtor before the court.

It should be noted that this country does not require any licenses in order to conduct debt collection activity.

Croatia Debt Collection Laws

Croatia does not have any requirement, such an obtaining of a license, for conduction international debt recovery business. It has to be mentioned that you are not obliged to warn the debtor in prior the legal proceedings. It is provided by the national legislation of the country.

Bulgaria Debt Collection Laws

An international debt collection agency does not have to warn the debtor prior in order to enter into legal proceedings on behalf of the client. It should be noted that the statute of limitation in commercial claims is five years, calculated from the next day after the due dates of the invoices.
The creditor with the claims concerning late payment has two options to initiate legal proceedings against the debtor – via an ordinary court procedure or through simplified legal proceedings by submitting an application (proposal) for enforcement by the court.

The national legislation does not provide the obtaining of the license in order to conduct international debt collection activity.

Ukraine Debt Collection Laws

There is no special legislation in Ukraine that regulates the activities of an international debt collection agency. Thus, any company can engage in debt collection activities and special authorization is not required. However, there are a number of restrictions in interaction with the debtor.
For example, it is forbidden to disclose information about the debt to third parties (the safety of personal data), to threaten the debtor or to carry out any other actions that may be perceived as extortion in accordance with the local law.

Russia Debt Collection Laws

The activities of an international debt collection agency in Russia have been strictly regulated since 2016.

All collection agencies must be included in the state register and should have a license. In addition, the law establishes restrictions on work with debtors.

For example, the employees of agencies may call the debtor only once a day. And no more than twice a week and eight times a month.

On workdays, the debtor can only be disturbed from 8 a.m. to 10 p.m., and on weekends and holidays - from 9 a.m. to 8 p.m. Personal meetings - once a week, and not more often.

Uzbekistan Debt Collection Laws



The activities of the debt recovery agency in Uzbekistan are not strictly regulated in any way, special authorization is not required, but at the same time, agencies do not have special powers or duties.

In the process of debt collection activities, the agencies should only adhere to local legislation with regard to the safety of personal data and interference with personal life.

Lithuania Debt Collection Laws

There is no special restrictions or legislation in Lithuania with regard to international debt collection activities or agencies. They must comply with common requirements and may have any legal form. In addition, there are also no prohibited actions against the debtor, with the exception of the laws of Lithuania.

Latvia Debt Collection Laws


There is a special authorization for debt collection agency on the territory of the Republic of Latvia. It is necessary to go through the registration procedure and obtain a license beforehand.



The law also establishes strict restrictions on communication with debtors, for example, the law prohibits aggressive communication, visiting the debtor at his place of work or place of residence without prior consent, providing false information about the consequences of defaulting on debt, and also contains a prohibition on communication on holidays, in evening and night time.

Azerbaijan Debt Collection Laws

The legislation of Azerbaijan does not contain any special rules or restrictions with respect to the organization of work of debt recovery agency. In this regard, communicating with debtors should be guided by general legislation without any special prohibited actions.

At the same time, as a result of numerous scandals related to the activities of bank collectors in the field of consumer lending in the past few years, it should be taken into account beforehand that collection agencies in their usual sense have a negative reputation in Azerbaijan among the population and small business.

Azerbaijan Debt Collection Laws
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