When considering international debt collections, understanding the issues regarding the language, customs, cultures and laws that govern a country is extremely important. Having a debtor located in India is no exception. Employing a collection agency that understands these specifics is important for successful debt recovery.

The US issues short term working visas as well as school visas each year. When working or going to school in the US, medical bills are incurred, leases are broken, credit cards are used, and cars are rented. Many debtors who have returned to India without repayment of their debt are unaware that the claim follows them.

Recovery actions and efforts in India are all focused on treating the debtor with fairness and making reasonable demands. There are many laws against harassment and threats to take away personal property. The laws and regulations in India encourage debt collection representatives to always treat the debtor with respect and courtesy.

Here are some interesting facts about India’s debt collection practices:

• One of the most effective techniques used by reputable agencies is called the “Winding Up Petition” (also knows as Liquidation). This is the most successful procedure against a registered company which would like to continue business.
• There is restriction in collection of payments in terms of cash. As per the Exchange Control Regulations, no Indian can accept payment from another Indian towards repayment to a foreign country. In international debt recovery the debtor is instructed to make payment directly to the original creditor.
• According to India’s debt recovery regulations the limitation period of a debt is three years. However, if at any point the debtor makes a partial payment or a written acknowledgment of the debt, the period is extended three more years.

Cedar Financial offers on-the-ground representatives in India that understand the debt collection practices that work to ensure successful recovery of your money. Contact us today to get started on the road to recovering the money you are owed.

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