International Debt – A Growing Area of Collections

Today’s marketplace is becoming increasingly global.  With the rise of the Internet, it is possible for businesses to operate virtually everywhere.  This is a profitable turn of events, but it can also mean that a business is left with payments owed by consumers in other countries.  As each nation has its own laws, it can be tricky or time-consuming to collect on the debt of customers in other countries.

If a business has significant international debt, it may be a good idea to bring in a collection firm.  The attorneys in a collection firm may be better equipped to collect on international debt because they can easily access and better understand the law specific to each country in which the debtor resides.  An attorney may also have more time to work within the time zone differences inherent in dealing with debtors overseas – assuring that attempts to contact the debtor do not violate that country’s collection laws. 

A collection firm is also more likely to have the resources to deal with the foreign language issues that come up in dealing with international debt.  It is often the case that the business owner does not have the staff or resources to spend time reaching debtors in Asia or Europe or Africa.  Even once the debtor is reached, understanding must be achieved. 

It may be necessary to actually file suit against the debtor, as the customer is unlikely to take informal collection efforts as seriously as legal action.  In this case, it is essential to have an experienced lawyer, who is informed about diverse international collection laws, handle the case.  A collection firm that handles international debt is likely to be well versed and very busy, as it is not a huge area of practice in the US.  It would be wise for a business to utilize a proper collections attorney for collecting on international debt, creating the best possible settlement on the debt.