The consumer credits: cards and loans that do not have a guarantee, are the financial products whose users fall more into legal, resources that intermediation entities must recover through contracts to collection companies or sell him the portfolio.
Although the percentage of debtors who stop paying their commitments because they are “badly paid” is “very low“, executives of the companies that are dedicated to collecting them reveal a growth in their businesses, an increase that, among other reasons, they attribute to the democratization of credit.
The credit cards appeared as the main driver in the entry of new debtors to the national financial system in the last 12 months, integrating through this instrument 94,585 usersaccording to the statistical report at the end of September of the Superintendence of Banks (SB).
Francisco Del Carpiorepresentative of the Association of the Credit and Collection Ecosystem of the Dominican Republic (COBRD), after defining companies in the sector as a liquidity engine For banking, he maintained that most people pay their debts as long as they can.
“We support people to return to financial formality because those people who were subject to punishment, who are excluded from the system, fall into the hands of informality,” Del Carpio explained about the main function of the collection companies.
He acknowledged that, at times, debtors face personal situations or financial, such as the increase in the financing rate, which causes them to fall into default and the system to remove them from financial formality.
However, he stated that there are defaulters who settle once outside the system financial, “and that’s where they need a incentive to return to the fold.”
The COBRD executive revealed that the percentage of debt that companies recover after purchasing a portfolio is long-term, taking between five and six years to receive what was invested.
Payment agreements
A financial userwho preferred anonymity, narrated his experience with the Templaris collection companybelonging to COBRD, stating that he managed agree and pay three debts that were acquired by that firm.
“With Templaris it went well. There I had a extra debt of 600 thousand pesos and with an agreement I paid no more than 200 thousand pesos. I had two more debts with them and I didn’t pay much. Those were loan debts“, he said.
He pointed out that, with another of his debts, which was acquired by the company Credit Manageralso received facilities for payment agreements. However, he criticized that they applied compulsive collections “and they called my company on several occasions and my relatives.”
Collection process
Meanwhile, Elizabeth Albaexecutive of Cobros Nacionales, one of the firms belonging to the association, recounted the steps taken by the collection companies for the debtor to pay off his commitment, pointing out that it can take months calling and sending messages before starting legal actionswhich is the last option they resort to.
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“We start extrajudicially: the first thing we generate is a collection letter for each person and we send it to their home explaining how we obtained their debt. Then calls, complying with what the Indotel (Dominican Institute of Telecommunications) says that not to exceed the limit of five calls, with half-hour intervals because turbo collection is prohibited if the phone is not in the name of the debtor,” he explained.
The businesswoman specified that it is not convenient for companies to start a legal action They immediately receive a credit. However, he stated that there are debtors to whom they should do lien.
“When we execute a file it is for two things: for the amount of what is owed, because for a case of two thousand pesos I am not going to execute a vehicle, and because a process has already been exhausted,” said Alba, who revealed that his company has received debt ranging from 5,000 pesos to million-dollar loans.
Legislation for the sector
With the creation of the association, union members seek to ensure that the sector has a single legislationalthough they indicate that they currently have standards issued by the SB, the Indotel and the National Institute for the Protection of Consumer Rights.
“The first ones who are not interested in this not being regulated are us, on the contrary, we are interested that this is for the line“Alba declared.
Francisco Del Carpio stated that, in general terms, the country’s collection industry is compliant with regulations, although he clarified that there may be specific cases of disrespect “because it is a difficult sector because no one likes to be charged.
Payment culture
“We always start from the beginning of one respectful collectionhumanized, which seeks to promote financial reintegration of the people,” he concluded.
However, he advocated that the country strengthen payment culturestating that without payment there is no credit and that no society advances without compliance with the commitments made.
“That is not so easy (to recover what was invested in the purchase of debts). They are a portfolio with a lot of money, but the payment response is not always the best,” he said.
{ it.style.width = width + px; it.style.flexShrink = 0; }); } function goTo(i) { currentIndex = i; const width = slider.clientWidth; container.style.transform = translateX(- + (width * currentIndex) + px); updateDots(); } function next() { if (currentIndex === items.length – 1) goTo(0); else goTo(currentIndex + 1); } function prev() { if (currentIndex === 0) goTo(items.length – 1); else goTo(currentIndex – 1); } function updateDots() { dotsContainer.querySelectorAll(li).forEach((d, idx) => { d.classList.toggle(active, idx === currentIndex); }); } function initDots() { dotsContainer.innerHTML = ; items.forEach((_, i) => { const li = document.createElement(li); const btn = document.createElement(button); btn.addEventListener(click, () => goTo(i)); li.appendChild(btn); if (i === 0) li.classList.add(active); dotsContainer.appendChild(li); }); } if (prevBtn) prevBtn.addEventListener(click, prev); if (nextBtn) nextBtn.addEventListener(click, next); initDots(); setup(); window.addEventListener(resize, setup); }); }); A financial user, who preferred anonymity, narrated his experience with the collection company Templaris, belonging to COBRD, stating that he managed to agree and pay three debts that were acquired by that firm. “With Templaris it went well. There I had a debt of more than 600 thousand pesos and with an agreement I paid no more than 200 thousand pesos. I had two more debts with them and I didn’t pay much. Those were loan debts,” he said. He pointed out that, with another of his debts, which was acquired by the Credit Management company, he also received facilities for payment agreements. However, he criticized that they applied compulsive charges “and called my company on several occasions and my family members.” Collection process Meanwhile, Elizabeth Alba, executive of National Collections, one of the firms belonging to the association, recounted the steps that collection companies take to get the debtor to settle their commitment, pointing out that they can take months calling and sending messages before initiating legal action, which is the last option they resort to. “We start extrajudicially: the first thing we generate is a collection letter for each person and we send it to their home explaining how we obtained their debt. Then calls, complying with what the Indotel (Dominican Institute of Telecommunications) says that not to exceed the limit of five calls, with half-hour intervals because turbo collection is prohibited if the phone is not in the name of the debtor,” he explained. The businesswoman specified that it is not convenient for companies to start legal action immediately when they receive a loan. However, he stated that there are debtors who should have a withholding embargo placed on them. “When we execute a file it is for two things: for the amount of what is owed, because for a case of two thousand pesos I am not going to execute a vehicle, and because a process has already been exhausted,” said Alba, who revealed that his company has received debt ranging from 5,000 pesos to million-dollar loans. Legislation for the sector The union members seek with the creation of the association that the sector has a single legislation, although they indicate that they currently have standards issued by the SB, Indotel and the National Institute for the Protection of Consumer Rights. “The first ones who are not interested in this not being regulated are us; on the contrary, we are interested in this being the same,” declared Alba. Francisco Del Carpio stated that, in general terms, the country’s collection industry complies with regulations, although he clarified that there may be specific cases of disrespect “because it is a difficult sector because no one likes to be charged.” Payment culture “We always start from the principles of respectful, humanized collection, which seeks to promote the financial reintegration of people,” he concluded. However, he advocated that the payment culture be strengthened in the country, stating that without collection there is no credit and that no society advances without compliance with the commitments made. “That is not so easy (to recover what was invested in the purchase of debts). They are portfolios with a lot of money, but the payment response is not always the best,” he assured. “/>
