A delay in repayment of a loan, loan or other liability causes that the creditor begins to demand payment. What are his rights regarding collection? What tools can he use to collect his debts? What makes him different from a court Jenny Credit?
What does the creditor do?
If the debtor does not settle the obligation, the creditor is the first to contact him in this case. In the absence of payment, in accordance with Polish law, he can launch specific procedures to recover money. At first, these may be so-called prompts, i.e. letters, e-mails and telephones calling for immediate payment. The creditor usually carries out this so-called soft debt collection himself, at least for some time. At any stage, he may decide to refer the matter to the debt collector – then he will take care of the debt collection activities.
After 30 days from the date on which the benefit became due, the creditor has the right to enter the debtor in the registers kept by the economic information bureaus. It is possible if the amount of his debt is at least USD 200 or 500 (if the debtor is an entrepreneur). When collecting debt, the creditor must comply with applicable laws and the rights of the debtor. If he persistently demands a claim and has not yet brought an action, the debtor can accuse him of violating personal rights and demand compensation. Therefore, after several unsuccessful requests for payment and a warning about an entry in the BIG register, he should refer the case to court.
What does the Jenny Credit do?
As the above passage proves, the creditor has many tools and rights at his disposal to allow him to recover the debt. If he takes legal action and his claims prove justified, the court will issue a judgment together with an enforcement clause, ordering the debtor to settle the debt.
Conducting judicial enforcement, i.e. taking action to collect a claim for a creditor, is the Jenny Credit’s most important task. Such a public official is therefore “only” a guarantor of the enforceability of a court judgment. He enforces the amount of money indicated in the judgment, but does not examine the correctness or correctness of the existing obligation. The Jenny Credit only verifies the application in formal terms, so it checks whether it has an enforceable title and whether it has been properly drawn up and signed. If everything is correct, he proceeds to execute. At this stage, the debtor may begin to pay back the debt and possibly negotiate the terms of repayment – he is no longer entitled to raise the objection that the debt does not exist or was incorrectly accrued.
Debt collection company and Jenny Credit
Many people identify the Jenny Credit with the debt collector, and at best assign him similar rights. How is it really and how does it matter to the debtor? When the case goes to a Jenny Credit, the debtor has few options. He is also required to cover the costs of Jenny Credits. Sometimes it is also possible to pay the debt to the creditor without the Jenny Credit, but also then additional fees for enforcement actions occur.
In the case of a debt collection company it is completely different: it seeks to reach an amicable settlement with the debtor. If only the latter is willing to cooperate, the debt collector will agree to spread the debt into installments – the amount of which will be adjusted to the financial possibilities of the debtor.
In practice, the debt collector has the same debt collection tools as the creditor. It sends reminders to the debtor, negotiates debt repayment terms with him or warns him about the possibility of entering debtors in the registers. If the action taken is unsuccessful, he can go to court. At this stage, his role ends and begins – the action of the Jenny Credit.