What can't you do when collecting a debt?
Posted: Sun Jan 19, 2025 10:58 am
Defaulting on payments is a very common occurrence in our country, especially in times of financial crisis. This is a delicate matter and, therefore, many people end up taking measures that may not be in accordance with the law when collecting a debt. An incorrect method of collection can generate innumerable losses for your company .
To help you avoid getting into trouble with the law, we have listed below some points that you should be aware of. Check them out!
What not to do when collecting a debt
1. Disregard the time
Calling to make a collection outside of business hours is self employed database an abusive practice according to the Consumer Protection Code (CDC) .
Therefore, charging is prohibited on weekends, holidays, before 8 am and after 6 pm. Sending cell phone messages on these days and times, or at any other times that are considered inappropriate, can also be seen as an abusive practice.
Similarly, calling the place of work may be considered inappropriate, depending on the situation. This should only be done if the creditor is unable to contact you by other means and if it does not expose the debtor to embarrassment.
2. Leave a message with third parties
Under no circumstances may the creditor coerce the debtor when collecting a debt . Therefore, constantly visiting the debtor's home or workplace may be considered an abusive practice.
Many creditors, when they cannot find the person, end up leaving a message with third parties, such as co-workers, neighbors, family members and others. This can be seen as a violation of privacy and is covered by article 71 of the Consumer Protection Code, which refers to the exposure of the debtor to moral embarrassment.
3. Threatening or stalking
Again, Article 71 of the CDC makes it very clear that this practice can be penalized. Coercing the individual, threatening them or giving the impression of persecution, contacting them several times a day, at home, at work, calling family members, among other situations, can generate problems for you and your company.
Another example of an attitude that can have consequences is waiting for someone at the door of their workplace or home, waiting for them to leave so you can go to your establishment to make the payment.
How to collect a debt
With so many limitations regarding collection , you might think that this is almost impossible to do, but that is not the case. There are legal means, such as sending out-of-court notices, blacklisting the consumer or even going through the courts. Article 42 of the CDC clarifies this point and indicates the guidelines to be followed.
Penalties that may be imposed on the creditor
There are several penalties that can be imposed on the creditor. The most serious of these is detention from 3 months to 1 year, depending on the case.
Furthermore, the consumer can even take the case to court and sue the creditor for moral damages. They can also ask for their name to be removed from credit protection services and if the judge finds that this is necessary to end the embarrassment, he will do so.
To help you avoid getting into trouble with the law, we have listed below some points that you should be aware of. Check them out!
What not to do when collecting a debt
1. Disregard the time
Calling to make a collection outside of business hours is self employed database an abusive practice according to the Consumer Protection Code (CDC) .
Therefore, charging is prohibited on weekends, holidays, before 8 am and after 6 pm. Sending cell phone messages on these days and times, or at any other times that are considered inappropriate, can also be seen as an abusive practice.
Similarly, calling the place of work may be considered inappropriate, depending on the situation. This should only be done if the creditor is unable to contact you by other means and if it does not expose the debtor to embarrassment.
2. Leave a message with third parties
Under no circumstances may the creditor coerce the debtor when collecting a debt . Therefore, constantly visiting the debtor's home or workplace may be considered an abusive practice.
Many creditors, when they cannot find the person, end up leaving a message with third parties, such as co-workers, neighbors, family members and others. This can be seen as a violation of privacy and is covered by article 71 of the Consumer Protection Code, which refers to the exposure of the debtor to moral embarrassment.
3. Threatening or stalking
Again, Article 71 of the CDC makes it very clear that this practice can be penalized. Coercing the individual, threatening them or giving the impression of persecution, contacting them several times a day, at home, at work, calling family members, among other situations, can generate problems for you and your company.
Another example of an attitude that can have consequences is waiting for someone at the door of their workplace or home, waiting for them to leave so you can go to your establishment to make the payment.
How to collect a debt
With so many limitations regarding collection , you might think that this is almost impossible to do, but that is not the case. There are legal means, such as sending out-of-court notices, blacklisting the consumer or even going through the courts. Article 42 of the CDC clarifies this point and indicates the guidelines to be followed.
Penalties that may be imposed on the creditor
There are several penalties that can be imposed on the creditor. The most serious of these is detention from 3 months to 1 year, depending on the case.
Furthermore, the consumer can even take the case to court and sue the creditor for moral damages. They can also ask for their name to be removed from credit protection services and if the judge finds that this is necessary to end the embarrassment, he will do so.