Bond collection refers to the act of urging creditors to repay debtors if they do not pay the amount of the debts incurred during financial transactions or transactions without due cause. At this time, it is called ‘illegal debt collection’ when a creditor violates relevant laws in the process of encouraging debt repayment.
Today, we will look at nine types of illegal debt collection and how to respond to them.
illegal debt collection Types
1. Collection without revealing the identity of the debt collector
Employees in the debt collection business must present an employee ID card (certificate indicating that they are engaged in the debt collection business) when visiting the debtor in order to urge debts. In addition, the person who collects the bond under the loan contract must give the debtor or his / her representative affiliation and name. It is illegal to collect debts without the need for identification by the creditors who are urged to repay the debtor .
2. Collection of invalid or nonexistent bonds
It is illegal to collect a debt collector’s intention to collect invalid or nonexistent bonds . This includes acts of asking a person to repay a debt even though he / she knows that the heir of the deceased debtor has given up his inheritance, or continues to collect without confirming the facts even though the debtor claims to have repaid the debt.
3. Repetitive call or visit
It is an illegal collection act to inflict fear or anxiety severely on the privacy or work by repeatedly calling, texting, or visiting the home without justifiable reasons .
In addition, it is illegal to conduct fears or anxiety at night (9 pm to 8 am) by night, without justifiable reasons, and to inflict fear or anxiety seriously on the privacy or work.
4. Notification of debts to third parties such as related parties
It is illegal for a debt collector to inform a debtor’s family or a company colleague of the debtor’s debt or credit .
5. Requiring Debt Repayment from Related Persons
It is illegal to inflict fear or anxiety and seriously harm your privacy or business by requiringanyone other than the debtor who is not legally obligated to repay the debt to pay it on your behalf .
6. Intimidation, fear, anxiety
If a debt collector raises his voice or talks abusively as a threat, it may be illegal collection.
7. Borrow money to force debt repayment fund
It is illegal to collect debts by causing debt collectors or related parties to borrow money or similarly to repay debts .
8. Collection to Individual Rehabilitation and Bankruptcy
The debt collector may not repeatedly ask the debtor to repay the debt, knowing that any activity that requires reimbursement of the individual rehabilitation claims or any request for reimbursement has been suspended or prohibited .
In addition, even though it has been confirmed that the debtor has been declared bankrupt and indemnified, the debt collection law is prohibited from requiring the debtor to repay the debt.
9. False guidance of legal proceedings
It is illegal for a debt collector to falsely state that a debtor or related person is undergoing civil or criminal legal proceedings regarding debt collection . The law also prohibits the use of words and characters that can be mistaken for acts by national agencies such as courts and public prosecutors’ offices.
1. Identification of the debt collector
If a debt collector does not identify you or if you are in doubt , you may be asked to provide proof of identity (employer ID or credit card) .
2. Request for issuance of debt confirmation
If you are in doubt about the existence and amount of your debt, you can request the debt collector to issue a debt confirmation to check the amount of debt and details of the debt .
3. Secure and report evidence
If necessary, obtain evidence (phone recordings, photos, witness statements, etc.) in advanceand report it to the Financial Supervisory Service’s call center ( 1332) or the local police station for assistance.
4. Complaints to investigative authorities if criminal punishment is possible.
If the criminal penalties for illegal collection practices available, who the victim to illegal collection practices conducted by the criminal complaint directly to the investigating authoritiesmay, for the conflict possible redress through civil proceedings must.
There are many cases in which you borrowed money for living or personal use but could not pay it back, and you may not be able to repay it, resulting in debt collection. Collection of debt is a right of creditor, but if it is used in the wrong way, it is against the law and can be punished.
But above all, it’s best to be cautious when making wise consumption habits and making debts. It is good for both creditors and borrowers to refer to the wise loan management, consumption management, and credit management posts posted on the Pinda post and to be careful of debt collection.