How to do it? – Debt Collection in Turkey
Prelegal debt collection via a collection agency is still a developing way of recovering debts. Turkey is the one of newest friend of this industry. Most of Turkish people still do not know about the concept of ‘ inkaso’ and also how do inkaso companies (debt collection agencies) operate. Why it is important to find a solution in prelegal stage? Is it a legal activity? Are they against the law firms? Do they steal the work of lawyers? In this article you may find new information about Debt Collection in Turkey.
The developing countries, like Turkey, are always looking for new markets to export their products. They need new markets to increase their income, GDP. For this reason some of the governmental institutions and foundations visit the countries with companies who can make import – export. Also they invite some countries’ chamber of commerce for this reason to grow up their business area. A debt collection agency can help the companies before & after the trading.
Firstly debt collection agencies can help companies with their Risk Management Services by providing commercial and credit reports about their ‘potential clients’ in other countries. Therefore companies may have an idea about their new clients before starting to work so they know their new customer if they are trustworthy. Debt collection agencies can help the companies after trading if the invoices are not paid or delayed. Sometimes services and/or goods are not delivered as promised.
As of today there is no legal foundation specific to inkaso process in Turkey yet. But it does not mean it is illegal. Contrarily, inkaso process is regulated within administrative and financial consultancy services. In addition, in all countries where debt collection industry is developed (such as USA, Australia, Canada, Germany, United Kingdom ect…), there are strict laws and regulations (such as FDCPA Fair Debt Collection Practices Act or European Union GDPR Policies) which are binding by certain international groups and associations. It is therefore recommended to work with debt collection agencies who are members of them for receiving professional service.
If you have debts from a Turkish company, it would be better to contact a local debt collection agency in Turkey because legal procedures can take a long time in Turkey, approximately 1-4 years, depending on the debtor’s objection and several other factors. Debt collection agencies can offer you shorter time to recover the debt because they can start the process without any delay and focus on prelegal debt collection. Most collection agencies work with the principle of “No Recovery No Fee” so you do not lose any more money to recover your receivables.
Generally prelegal debt recovery is achieved within 1-2 weeks but the process may take up to 6-months maximum. In the prelegal stage it is possible that you may recover your debt. If not, starting legal action is always an option considering that the statue of limitation is 10 years in Turkey. This timespan is quite long compared many other countries which has 5 or 3 or even less time for a debt to be statue barred. In other words, it is unlikely for a Turkish debt to be statue barred due to the age of debt. This means ‘giving a chance to recover your debts before legal action’ is always worth to try. And the chances are higher if you work with a professional and strong debt collection agency that focuses on prelegal settlement.
If you would like to recover your debts in Turkey without risks, then work with a debt collection agency. All of the risks are taken by these companies, you will only wait the amounts are delivered to your bank account.