Can I engage a lawyer to demand repayment of a debt owing to me?
Yes, a lawyer can be used to issue a demand letter for repayment of a debt. If the debtor fails to fulfill the demand, the creditor may request the lawyer to file law suit to obtain a court decision requiring repayment.
What is the difference of using a lawyer sending a demand letter and the creditor issuing the letter himself?
With a lawyer letter, the debtor is likely to perceive that the creditor is likely to escalate to a court action if the demand letter is not complied with. The likely court option could be bankruptcy – please see this page.
Can I use non lawyers debt recovery agency?
Yes, there is no prohibition against this but the debt recovery agent cannot pretend to be your legal attorney without a legal practice license.
Can these debt recovery agent forcibly remove assets from my house?
No, they do not have this right. Any forcible removal can only be done with a court order. If they do so, you should try to take video recording of such action and be ready to file police complaint against such people.
Any compulsory removal can only be done by a court bailiff with a court order.
If a person claims to be collecting a debt on behalf of someone, what should I do?
You should ask for his or her identity card to establish his identity. Then you should confirm that he or she is holding a power of authority given by the creditor. A legal attorney claiming to represent the creditor is obligated to show his power of attorney.
Should I repay the loan to an agent?
It is advisable to pay directly to the creditor so that there is no dispute subsequently whether or not the creditor received the money. The creditor may deny that the agent has handed over the payment to him.
What would be preferable, using a lawyer issuing a demand letter or a debt collector?
There are some risks in using debt collectors. It is not uncommon that debt collectors use certain high pressure tactics that may amount to criminal conduct.
A professional lawyer is regulated by code of ethics and subject to disclplinary action if there is any misconduct. Using a legal attorney is likely to offer greater peace of mind. Threats of law suit is likely to be more credible coming from a legal attorney.
Please see the following for further information :