Default and consumer rights – be more confident in your actions with these 5 tips

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It is true that all companies that have debtor customers want to recover the amounts owed as quickly as possible. But even in situations of default, creditors must be aware of consumer rights to avoid future problems!

Below, we explain 5 important aspects of the collection process and the relationship with your defaulting customer. This way, your company can carry out debt recovery actions with greater security. Enjoy reading!



1 – Notification about inclusion in credit cash app database is mandatory!


If you have a delinquent client and you want to register the debt with credit protection services, the consumer has the right to be notified about the inclusion. And be careful: the communication must be made in writing – telephone contacts, for example, are not legally valid!

Another aspect to be highlighted is that the notification is not sent directly by the creditor company, but rather by the chosen credit bureau . When registering the debt in the database, a warning letter , electronic debit notice (AED) or extrajudicial notification will be sent to the customer, previously defined with your company.

In addition to the debt details, the text also includes the creditor company's contact details and, in some cases, a new bill. This way, you encourage the defaulter to pay off their debt and comply with the law!



Read also: “ After all, what is Negativation? 6 frequently asked questions about the Defaulters Registry ”





2 – Exclusion of debt from credit bureaus and correction of data


Just like the inclusion of a debt and negative listing in credit bureaus , the deletion of customer data – in the event of debt settlement – ​​is also your company's responsibility!

If the outstanding debt has been paid, the creditor has up to 72 hours to remove it from the negative credit database. If the deadline is not met, the customer can request the correction and removal of the record from the information database within up to five business days.

If the action is not taken within this period, the client may file a claim for compensation for moral damages. Furthermore, if the debt has not been paid after 5 years of the negative listing, the registration will automatically no longer be exposed to the market. Therefore, be careful!



Read more: “ Negative Registration of Defaulters: Which documents can be used? ”



3 – Care in collection actions


According to article 42 of the Consumer Protection Code , debt collection actions cannot, for example, embarrass or humiliate the consumer, even if he or she is in default. But what does this mean?

In the case of contact by telephone , calls cannot be made in an insistent or excessive manner, and must respect the following times: between 8 am and 6 pm, during working days. Telephone charges are prohibited on Sundays and holidays. On Saturdays, the time is limited to between 8 am and 2 pm.

Furthermore, it is not permitted to call or leave messages with third parties, such as family members, neighbors or colleagues of the debtor. Communication must be made directly with the person responsible for the debt.

In the case of written notification , the debt details should only be included inside the letter, and not on the envelope, for example. This will avoid any potential embarrassment to the customer.