Collection agencies are companies that specialize in professional collection of overdue debts. Collectors return old debts from both individuals and legal entities, based on the laws of the Russian Federation. The services of collection agencies are paid in advance by a specified percentage of the amount of debt owed or by agency fees.
Origin in Russia
The first collection agencies began to appear in Russia in 2000-2004. A debt agency is an intermediary between a creditor and a debtor. Through the use of various legal methods, collectors make the debtor pay off overdue debts.
Collectors work with the lender in two ways: buy debt or work on the basis of an agreement
Repurchase of debt from a bank under an assignment agreement.
Collectors redeem the borrower's overdue debt from the bank (by the way, for 5-7% of its value), and then they themselves act as the new lender. Banks sell “dead” debts, which they cannot recover from debtors for various reasons.
When selling debt, the difference between the amount for which it was sold to collectors and the amount that the debtor still owes is written off as a loss by the bank. Now all rights of the creditor belong to the collectors and from now on they will demand repayment of the debt. In addition to the amount of the main debt, collectors will also charge interest and penalties for late repayment to the debtor.
Agency contract
The bank transfers the debtor of the borrower for a certain time to the collection agency. Collectors begin to actively work with the debtor, forcing the latter to pay the debt. If collectors fail to get the borrower to cooperate with them, they return his case back to the bank. Then the bank has the right to apply to another collection agency or to the court.
Sequoia Collection Agency
This collection agency appeared on the Russian financial market in 2004. Today the company operates in 95 branches and divisions. The company works not only with banks: microfinance organizations, housing and communal services, as well as individuals, turn to it to solve the problem of eliminating financial debt.
The activity of Sequoia Credit Consolidation is regulated by the Law on Consumer Lending, which entered into force in July 2014, which gives collectors not only rights, but also obligations.
The rights
Collectors can call the debtor, send SMS messages and letters, as well as come to his home. But at a certain time:
- on working days from 8 am to 10 pm;
- on weekends and holidays from 9am to 8pm.
Duties
Sequoia collection agency is obliged to keep information about the debtor, which constitute bank secrecy, as well as to ensure the confidentiality of personal data.
It is forbidden to abuse their rights, namely to make uncontrolled calls to the debtor, to exert pressure on his psyche. In addition, it is forbidden to use actions that can harm the debtor.
But this is all a theory. In practice, representatives of this agency do not just make constant calls. The debtor is threatened with reprisals against him and his relatives, accusations of the debtor that he is a fraudster, since he does not want to pay the debt, transfer the case to court. The Sequoia collection agency is engaged in extortion and intimidating its debtors.
Stages of work with debtors in Sequoia
Collectors work with debtors at certain stages. There are only three of them.
Soft is the first stage of the work of collectors.It reveals everything about the debtor by making him phone calls. His real place of residence is established, and it is also checked whether he is a fraudster. At the first stage, the sequoia collection agency applies soft arguments and beliefs, motivating the debtor to pay the debt. If the application of these measures does not lead to anything, then go to the next step.
Hard - the second stage of work with the debtor, but not so peaceful. The depth of the hard depends on the debtor himself: the amount of his loan, plus legal literacy, plus behavior when making calls. This stage is characterized by multiple calls with threats, letters (sometimes with outright slander against the debtor and lies), as well as the appearance in the entrance of the debtor of information about his duty.
Legal is the final stage. Having realized that nothing can be achieved by threats and extortion, Sequoia Credit Consolidation either returns the debt back to the creditor or sends a statement of claim to the court against the debtor. The non-payer needs to attend the meeting, because while the debt was with the collectors, interest and fines continued to be charged to him. And in court with the help of Art. 333 of the Civil Code of the Russian Federation, the accrued interest can be partially reduced.
Collector Reviews
About the collection agency Sequoia reviews can be safely divided into two votes: the creditor and the debtor. And of course, there are a lot of feedback from debtors, and all are negative. Agency representatives speak rude, rude and threatening.
Sequoia collection agency may seek a debtor in social services. networks. Having found the page of the non-payer, messages about the borrower's debt can be placed under his photo using explanations of what will happen to him if he is not paid. Or relatives and friends of the non-payer receive e-mail letters, the content of which contains an appeal to help the debtor financially, because he is not able to fulfill his financial obligations.
Debtors need to know that there is article 196 of the Civil Code of the Russian Federation “The limitation period”. We will examine its essence using an example.
In 2008, the borrower took a consumer loan for a period of 1 year. The borrower made a monthly payment several times, and then his financial situation changed and he stopped paying. The bank accrued interest on debt, fines. The bank’s security service made calls to the debtor, finding out the reason why the debt was not paid. The debtor continued not to pay. After some time, the calls stopped, and the defaulter forgot about his debt to the bank.
It took, say, seven years. By ordinary mail, in 2016 the debtor received a letter from the collection agency Sequoia Credit Consolidation, which said about the transfer of rights. And now the collectors have already begun to “extort” debt from the non-payer. The first and most important thing the debtor needs to do is not to call the indicated phone numbers! Why? The consumer loan was taken by the debtor for 1 year, that is, a year later, he had to pay it. In this case, the term of the loan obligations was determined. From the day after the end of the loan agreement, the report of the limitation period began. In 2012, the statute of limitations has passed. And in 2015 and the second time.
Collectors tell the debtor that they will sue him, then here they just bluff. Arriving at the hearing, the debtor must file a petition for admission by the bank and collectors of LEDs. Since the bank and collectors are legal entities, the Decree of the Plenum of the Supreme Arbitration Court of the Supreme Arbitration Court and the Armed Forces of the Russian Federation dated 02.28.1995 No. 2/1 applies and the LED cannot be restored based on it.
Sequoia - collection agency: telephone for communication
The notice received by the non-payer indicates all contact phone numbers, as well as the address of the head office. It also lists punitive measures that will fall on the head of the debtor if the debt is not paid.
