What is extrajudicial debt collection? Learn how to adopt it in your company

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What is extrajudicial debt collection? Learn how to adopt it in your company
Extrajudicial debt collections are mechanisms widely used by companies. Unlike what happens in judicial debt collections, in the extrajudicial modality the results are usually faster and the relationship with the client is not as affected.

In this article, you will learn more about this type of collection, its meaning, operation, benefits and how to do it. Want to know more? Keep reading and learn how to implement extrajudicial collection in your company!

What is extrajudicial collection?
Extrajudicial debt collection is a type of “friendly debt collection”. Through this, the company contacts the debtor with the aim of negotiating payment. In an extrajudicial debt collection, the creditor and debtor georgia phone number list can agree on amounts, dates and payment methods.

In extrajudicial debt collections, there is no involvement of the judiciary, unlike what happens in so-called “ judicial debt collections ”. In some cases, the company may hire the services of specialized debt collection consultancies that attempt to reach an agreement with the defaulting customer.

However, if they do not wish to hire these services, they can carry out the procedure directly, without intermediaries. An employee or department of the company is responsible for contacting the debtor to negotiate the debt.