Fintech debt collection

Debt recovery is often a lengthy and complicated process. The challenge is not only to persuade the debtor to pay at the pre-litigation stage, but particularly to track down the debtor in situations where the debtor's address or other details have changed, allowing contact and even sending a demand for payment.

For one of our clients, we provided an opinion on the assumptions and process of a comprehensive, modern solution aimed at amicable debt collection using, among other things, skip tracing tools.

The analysis concerned both the implementation of the process against the background of the Consumer Credit Act, including in particular provisions relating to non-interest costs of consumer credit, as well as legal risks related to the broadly understood protection of competition and consumers.

As part of the project, we recommended necessary changes to the planned debt recovery process and the manner of communication with consumer debtors. We also prepared personal data entrustment agreements, regulating mutual obligations and the scope of transfer and processing of personal data by clients using the solution in the debt collection process, including skip tracing services.