Therefore, the payday collector cannot threaten to violate your inviolability, disseminate information about your debts, or even cause unjustified criminal proceedings (e.g. submitting a notification that during the taking of the payday loan you have committed fraud, although there are no grounds for it – Article 115§ 12 of the Penal Code).
An employee of the company may not use your data in contacts with other people (e.g. colleagues, neighbors, etc.). Under no circumstances can he inform them about your debt. In this case, you can submit a complaint to the Office for Personal Data Protection.
The payday collector has no right to use any violence to make you pay the debt. If this happens to you – immediately report it to the Police.
Remember, however, that delaying the payment of payday loans generates additional costs. Under current regulations, the cost of exceeding the repayment date cannot exceed 14% of the loan value per annum.
What can payday payday debt collectors do?
Field debt collectors operate on the basis of internal regulations in force in their company. Such regulations do not apply to other citizens (including you).
The debt collector may only, pursuant to applicable regulations, call you to settle the liability and negotiate the manner of its repayment.
In addition, the debt collector may inform the Police or the Prosecutor’s Office about the possibility of committing a crime (e.g. fraud – Article 286§1 of the Penal Code, counterfeiting of the document – Article 270§1 of the Penal Code). You must be aware that anyone can submit such a notice. However, the state authority that receives the notification must check it (i.e. carry out the proceedings). This is not synonymous with the fact that the case will go to criminal court.
The debt collector must refer to specific circumstances. Such circumstances are usually:
- Providing false data in the application
- Use of false documents
- Take the payday payday without the intention and possibility of repayment
In this case you may be accused of cheating. However, if none of these circumstances apply to you – you can be completely calm. The police and prosecutor’s office are not involved in debt collection.
During the proceedings, it is worth pointing out why you cannot repay the loan at the moment (e.g. difficult financial situation, job loss, health problems). In this case, the proceedings will be discontinued. In addition, you cannot proceed to the next case (unless new circumstances arise) and you will no longer be called to the police.
It is worth remembering that debt collection activities generate costs. The debtor covers these costs. Until the anti-usury act was introduced, some loan companies charged enormous fees (even in the amount of several hundred zlotys for sending one sms).
Like payday loans, they draw debts
Large loan companies have separate debt collection departments. Smaller companies usually do not deal with collecting debts on their own. It is a long and expensive procedure. The lender prefers to sell the debt to a debt collection company (often for a fraction of the value). In this case, the liability passes to that company and the lender recovers part of the capital.
Employees of a loan (or debt collection) company try to contact the debtor. They count on the fact that most people will opt for voluntary debt repayment after a regular call. If such repayment does not occur – they assess whether in this case it is worth going to court.
The decision to open a case in a civil court is individual
Companies are aware that this involves a number of different fees and lengthy administrative tasks. In addition, this can go on for years.
The company’s employees assess each case and decide whether such a solution will be profitable. Due to this, debt collection companies take legal action as a last resort (after unsuccessful recovery). Otherwise, the debt remains at their disposal until they become time-barred (or resold to another company).