Can a Foreign Debt be Collected in UK?
Can a Foreign Debt be Collected in UK?
Being owed money by a client in another country is always a stressful and frustrating experience. Many people will go to almost any length to stop any attempt you have to recover the debts. Some debtors think that if they are based in another country they will be able to withhold payment with no consequence.
It is true that there are different challenges that a debt collector must overcome. Despite this, debt recovery from someone in another country is a straightforward task for the right collections agency.
Understanding a foreign debt is key to success, and having the right skills and expertise is crucial to its successful recovery. For example, there are several key types of foreign debt, with the two most common being private or commercial debt.
Federal Management is regarded as the UK’s leader in international debt collection. Since 2004, we have helped thousands of businesses recover millions of pounds in owed money. To answer the question of “can a foreign debt be collected in UK”, we asked our debt experts for their thoughts.
Collecting Debts from Overseas
Collecting a debt from another country is sometimes seen as a difficult task by some. To the right agency with a good debt collection process, it is very much determined by each debt’s unique circumstances.
A professional international debt collection agency will possess the expertise and infrastructure that is required to recover an international debt.
For instance, Federal Management has a global network of trusted debt collection experts. Each one of these is an expert in the collection practices in their own respective locations. This network provides us with the ability to deliver our leading debt recovery services to virtually anywhere in the world.
International Debt Collection Laws
Every nation in the world has its own way of governing debt. As well as this, local civil laws must be taken into account for every case of international debt. Factors such as the time of day, native languages and even cultural implications must be accounted for.
For example, debt collection companies in India must be aware of the 3-year statute of limitation placed on owed money. In India, there is a 3 year limitation period for when a debt can be enforced. Debt collection agency Canada companies need to be aware of the 6 year limitation period that nation has. This is as well as the provincial laws and different languages spoken.
Whether it’s debt collection Europe, a singular EU Country, the USA or debt recovery UAE, you need the best. You should confirm that the agency you choose has a proven history of successfully recovering overseas debt.
How to Collect a Foreign Debt in the UK
There are many reasons why an international debt may occur. Most modern businesses are now trading internationally thanks to both the internet, and the ease of global trading. Whilst this opens up commercial opportunities that have previously been impossible, the potential for debt to occur has also grown sharply.
For example, you may have provided goods or services to another company based in Europe. When you issued the invoice, the company you dealt with has suddenly stopped contacting you. Or a client from another country has sent a bounced cheque, leaving you in a tricky spot. Regardless of the reason, the debt must be collected as soon as possible.
With this in mind debt collections services are in more demand than ever. This is especially true for those that can help recover an international debt.
There are several options for recovering an international debt, and it is important to consider each one carefully. For example, debt collection solicitors provide overseas debt recovery, but this comes at a very high expense.
A debt collection agency provides a low cost and effective international recovery service. With our specialist overseas team, Federal Management provides high recovery rates of up to 90% on undisputed debts.
For more information on how we can help, speak to one of our international debt collection experts today. We will perform a free pre-action appraisal of your debt, giving you a clear picture of what your options are.