Are you facing issues of late debt payment or the debt you gave to another organization is unpaid and even the deadline has passed away? It’s time you look forward to a debt collection agency. Running a business or giving individual loan in Indonesia has now become even easier as the collection agencies are now functional as a backup for your loan system.

Debt collection – the ultimate way to receive the unpaid debt payments:

The word ‘debt’ and ‘collection’ makes it simple to understand what this phrase actually means. Anyone who is facing the issue of unpaid payments of debts can refer to those who perform the service of debt collection.

Who collects the debt?

The debt collectors are hired by the business enterprise itself or the third-party debt collection agency for the purpose of collecting the loan from the debtor. Only the skilled and experienced debt collectors are hired to make sure that they succeed in doing the job.

Payment of the debt collector:

The payment of the debt collector in Indonesia depends on the system according to which the agency works. Usually, the creditor is expected to pay around 25 to 45% of the amount collected by the debt collector. The agreement is done before the collector proceeds and is signed by both the parties.

Types of debt collection:

This refers to the ways through which the process of debt collection can be carried out. The three simple ways are:

• By the first-party agencies

• Third-party debt collection

• Debt buyers

Brief description for each is given below:

First-party collection agencies:

Most of the times, the business enterprise which gives away the loan also have its own debt collector. He is paid according to the decision made while he was appointed and provides his personal services only to the business firm. At times, there is a whole department allocated for this purpose and all the records are kept and maintained by them.

Third-party collection agencies:

These agencies are not the part of the organization which needs its debt to be collected. Thus, any creditor who is looking for a place in Indonesia which can help him claim his debt back needs to visit the best agencies in town. The few prominent ones in Indonesia include Euler Hermes, De Incassokamer, Jakarta collection agency and Indonesia Attorney collection agency.

Debt buyers:

This is also known as the sale of debts. The purchase of the debt from the creditor is made by the debt buyer keeping in view the percentage of the value of debt in mind. Now it’s the job of the debtor to collect the debt. He has the freedom to add interest in the amount and carry out the proceedings as he wants.

What debt collectors do?

The debt collectors have two approaches in mind according to which they do this job:

• They contact the delinquent borrowers personally by calling them, sending them a letter, an e-mail or visiting their place to make a contract.

• If the debtor does not respond to the personal effort made by the collector then an official notice by the court is sent.

Further details are available here Debt Collection Indonesia