What is a debt collector?
When banks and other agencies find that they are no longer able to follow up for payment with people who owe them money, they may turn to a private debt collection agency.
Some agencies are tactful in their dealings with debtors, peaceably using tele-collection methods where officers will call, remind, and prompt debtors for payment. They may also send debt statements, repayment notices, demand letters and the like.
Some agents may even be deployed to meet the debtors in person to negotiate repayment only with their permission of course – and this should be the extent of their duties. However, not all agencies operate with the same level of diplomacy. Since the field is only loosely regulated, the actions of some debt collectors can at times border on harassment, some even escalating to intimidating threats.
What is the fastest way in debt recovery against a company?
Onsite debt collection.
How fast is debt recovery?
Depends, fastest 2 weeks.
What best practice or guidelines do licensed debt collectors adhere to?
Here’s a list of actions that debt collectors are not allowed to engage in when dealing with borrowers:
  • Call debtors more than three times per week.
  • Block access to their residence or trespass on private property.
  • Intimidate, use abusive language or attempt to humiliate debtors.
  • Contact neighbours, co-workers, friends, or family members of debtors to demand for payment.
  • Provide misleading information to scare debt i.e. threaten to bankrupt them, send them to jail or file criminal action against debtors.
  • Misrepresenting themselves or the documents they present to debtors.
What can I do if my debt collector cannot recover my debts?
No payment will be incurred if debt collector unable to recover debts.
What is the role of Bank Negara with the debt collectors?
Those who are tasked with ‘chasing’ loans and credit card payments are not allowed to“exert undue pressure or influence, harassment, or coercion as provided in the circular on Fair Debt Collection Practices. These guidelines were set forth by BNM to control how banks and financial institutions manage debt collection activities.
Can creditor recover cost of collection?
Depends, if there’s clauses mentioned cost of collection will be imposed to the debtor.
What documents are required by debt collection agency?
Agreements, contract, invoice, statement of account, delivery order/ purchase order with company chop and authorized signature.
Do I need to issue a letter of demand before initiating legal proceedings to recover the debt?
Yes. Letter of demand is a letter stating a legal claim (usually drafted by a lawyer) which makes a demand for restitution or performance of some obligation, owing to the recipients' alleged breach of contract, or for a legal wrong.
What’s the minimum amount owed before i can commence legal proceedings against the debtor?
Individual – min. RM50,000 , Company – min. RM500
Can I still take legal action if I can’t locate the debtor anymore?
Yes, but please consult a lawyer for better decision.
Is there a time limit to commence legal action against the debtor?
Yes, within 7 years.
Can I sue the debtor without having to go through trial?
Is a must to go through trial before taking any legal action.
How long does the process take to obtain a judgment (without a trial) against the debtor?
Minimum 6 months
Do you handle stock return?
No, this is considered dispute cases
Besides pricing, what makes Orion different from others?
Professionalism in service quality.
Contact Us On WhatsApp