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Ela Blasco* There are five main points to take into account when explaining how to collect in Spain.
Amicable Collection
Spain is different! And this can also be applied in the way we collect our debts. Some of the main differences are caused by debtor attitude. Only 10 percent of the Spanish debtors will answer or react to a first letter of claim. Written demands of payment are usually useless, specially standard letters. You may get some reaction if you add some personal facts to your letter or fax.
Telephone collection is, therefore, the primary method used in debt collection. Spain is, however, far behind other countries in smart dial collection.
The number of calls necessary in order to collect a debt will probably double or triple the number of calls needed in any north European country. A recent study says that the Spanish are the third worst payers in Europe, Italy and Greece being first and second. The figures are getting better, however, as credit management policy is being gradually introduced in our country. For instance bad debts in the Spanish banks and financial institutions went down 355.000 million pesetas last year, compared to 1994.
Another way to press for collection would be the notarial request, which may be a way to press debtor in a legal and ethical way. The public notary visits, personally, debtor's assets and states in a public document that the debt has been officially claimed as well as debtor's remarks, if any. This document may be helpful if the case is taken to court as a way of proving that the creditor has done everything possible to try and collect the debt in an amicable way.
Suspension of Payment
This procedure, peculiar to spain, may seem close to a bankruptcy procedure, and sometimes ends as one, but it is really a midstep between bankruptcy and solvency. It enables debtor to officially stop payments, and also interrupts the running of the interest, as well as avoids the consequences of any legal action which might have been taken in advance. It can only be requested before the judge by debtor, not like in the bankruptcy...