Whether due to lack of liquidity, a bad decision or for any other reason, anyone can get into debt having difficulty paying. If an agreement is not reached, it can even become part of a delinquent file until this situation is resolved: paying it or requesting a review or appeal because the affected party considers it unfair.
In this process, the company that has not received the payment can make the decision to sell the debt to a third entity, which from that moment will be the one in charge of the collection. This practice is completely legal And, in fact, there are companies specialized in investing in debts that will later collect on their own.
What do companies that sell debt gain?
Although they will not recover all the unpaid money, since the entity that buys it you only pay a percentage of it, they get rid of the collection management, a process that entails associated expenses. In addition, it is a fast way to recover liquidity and to avoid the follow-up of invoices, which can become a real headache that also ends up being unproductive.
And what do the companies that buy it gain?
In this case we are talking about organizations that are specialized in the collection of defaults by individuals and business entities. They generally have teams prepared for any contingency that appears, so that they manage to recover that money on a high percentage of occasions. It is, therefore, an investment from which they will profit because they have the legal knowledge and the appropriate personnel to ensure that the debtor fulfills his obligation.
What types are sold?
Companies can sell any debt, as long as they have not expired (they prescribe after five years) or are in a judicial process to determine their validity. However, there are many and increasingly common examples. Recently, Bankia (@Bankia) has pierced a portfolio of consumer and SME loans with a gross value of 246 million euros to the Kruk group (@kruk_espana), which is specialized in these matters. As published in Information, the price of the operation ranged between 37 and 49 million euros.
Another example has been carried out by the Banco de Santander (@Santander Bank), which has sold 30,000 loans from Santander Consumer Finance for a gross value of 90 million euros to B2Holding, another group specialized in the management of collections.
How does it affect the debtor?
“The assignment and recovery of the debt by the company designated by the new creditor may be, despite appearances, good news. Give us the opportunity to reach an agreement with the new creditor and to avoid the judicial route. There are companies that allow us to pay the debt in installments adapted to the debtor’s possibilities «, they explain on the Kruk website, where they also point out that» although it is not necessary to obtain the debtor’s consent to sell the debt, a official communication”.
“Normally, the previous creditor will send a letter informing about the assignment or it will arrive in the same envelope containing the request for payment from the new creditor. Subsequent payments should be made to the new creditor and all contact with the old creditor should be stopped. Any agreement or negotiation on the debt must be made with the new creditor and the payment must be made to your account. Together with the assignment of the debt, the previous creditor will communicate all the rights, duties and information to the new creditor, who will have become the only entity with the power to decide on the debt ”, they add.
The OCU denounces illegal practices
In this scenario, there are also situations that can be harmful to the consumer. From the OCU they assure that they have verified that “they are common, by these companies, the constraints, the deceptions, hiding and masking reality, the threatening, contemptuous and even violent tone and, above all, the threats, and if necessary with intimidating shouts included of the type: Either you pay 300 euros this week, or the next one will be 900 and in the Courts! «.
“For most of these companies, almost always goes for everything. In any case, to receive threats from collection managers, must always be reported”, They advise. And they even point out that these practices have had convictions: “The Alicante Provincial Court sentenced in 2012 an employee of a company specialized in collecting debts from defaulters, who used ‘intimidating techniques’ in 2008, for coercion. the Court as a measure «outside the legal channels».
However, the OCU also affects the fact that we are talking about a legal practice. «In most bank contracts and credit, financing and service contracts there is an agreement between the entity and the client that allows the creditor to sell the debt without any authorization from the debtor. Thus, a person from whom a debt is claimed refuses to pay it on the grounds that he has not authorized the sale of said debt, it will not do him any good. The assignment of credits modifies their ownership. The obligation continues and the new creditor has the same guarantees that the previous system had, as provided for in article 1,209 and following of the Civil Code ”.