bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Tuesday 25.09.2018 | Name days: Rauls, Rodrigo

Amount of businessmen debtors decreases in Latvia

FaceBook
Twitter
Draugiem
print
(0 rating, 2 votes)

Latvian-of-Court Debts Recovery Association Chairman Agnese Priedite

The amount of debtors in the sector of legal entities has decreased, BNN.LV was informed by the Chairman of the newly founded Latvian-of-Court Debts Recovery Association (LOCDRA) and Intrum Justitia director Agnese Priedite (Agnese Priedīte).

It can be explained not by improving of the situation in the market, but by the adoption of the participants to it. At the same time the head of the debt recovery association indicates that the amount of debtors among private entities could increase in autumn, because of the heating season start. She also tells about the new association, where the leading debt recovery and credit management companies have united – SIA Creditreform Latvija, SIA Paus Konsults, Lindorff Oy Latvijas filiāle, SIA BaltRisk, SIA Intrum Justitia. She explains that the association to a great extent will operate as debt recovery lobby.

What is the newly founded LOCDRA and what are its aims?

The main aims of LOCDRA is to participate in debt recovery industry regulatory legal framework development and improvement. It also represents the common interests of debt collection companies in state power and management institutions, as well as, social and international institutions. We will also inform the society about the latest trends in debt recovery market, protect the interests of creditors and develop and maintain the understanding of the society of Latvia about the principles of debt recovery industry work.

One of the main tasks of the association is also dispelling of myths and promoting of understanding of the society regarding both: the debt recovery industry and attitude towards creditors and debtors, as well as the debtors attitude towards his liabilities. We put great emphasis on education of educators about their rights and responsibilities and possibilities to reach a common agreement of how to settle the accounts. It can be said that the association will be as a lobby of the industry.

What are the debt collection industry tendencies you could forecast for near future? Will the amount of debtors decrease?

Currently the amount of debtors has stabilized – the growth curve is not so rapid as before. Growth of debtors is expected among private entities in autumn due to the beginning of the next heating season. However it is difficult to forecast whether it will be rapid.

The amount of debtors among legal entities has decreased though. It can be explained not by improving of the situation in the market, but by the adoption of the participants to it. Many enterprises evaluate their collaboration partners more carefully, they ask for pre-payment more often and the amounts paid after are not so big any more as they were in, for example, 2008.

What are the revenue of debt recovery industry in Latvia? Do you have any data on the leading debt recovery companies in Latvia? Where are they and what is the turnover of six months of the largest ones?

The members’ of the association last year’s overall revenue formed 4.9 million lats. In 2009 45 000 cases or unpayed bills were submitted for debt collection in B2B sector (legal entities); the total sum of them comprise almost 52 million lats. In the sector of consumers in the same period, 380 000 cases have been submitted with an overall sum of 104.66 million lats.

How do you evaluate the fact that debt collectors have started to search for debtors in social networks?

That is true that there are companies that practice this. We as an association do not neglect that.

It must be emphasized that this way of communication is only used when the debtor has not responded to any other effort to reach him or her. First of all the debt collectors try to reach debtors using the contact information they have indicated in the contract. It is important to understand that the objective of a debt recovery company is to solve the situation – to communicate with a debtor and to mutually agree upon possibilities to repay debts. If one has made information public in social networks, then communication with him or her in such a way cannot be considered unethical. There have been situations when this is the only way how it is possible to reach a debtor.

Before communication with someone, the debtor is identified after all the information possible to make sure that the right person is addressed. Moreover when communicating for the first time, no confidential information connected with the debt, is revealed. It just requests to reach the specific debt recovery company.

Companies that practice searching for debtors in social networks indicate that the contribution of this is felt, because there are many people that have simply forgotten about the debt, or they have not paid it because of financial reasons. Usually they are not avoiding paying debts on purpose. Most of debtors try to solve the situation and a comparatively small number of them do not pay debts on purpose.

How do you evaluate the competition in the industry of debt recovery in Latvia? Honest, tough or not fair?

The competition is tough. It is a positive fact, because debt collectors think about improvement of their activities, promotion of efficiency and quality of services. Currently there are about ten large industries operating in the industry. There is also a great amount of small companies that identify themselves as debt recovery companies.

How could the market change when the number of debtors reduces? Consolidation? Disappearance of small participants?

It is likely that the small companies would leave the market; however it should be noted that the leading debt recovery companies deal not only with debt collection, but also other credit management services that can compensate for small revenue from debt collection.


Leave a reply

  1. Anonymous says:

    kāda neglīta sieviete

PHOTO: Pope Francis visits Riga Cathedral and meets seniors at St Jacob’s Cathedral

Pope Francis visited both Riga Castle and Riga Cathedral, where a service was held under his supervision. There he met with different Latvian officials. After that, the pope met with senior citizens at St Jacob’s cathedral.

Pope Francis arrives in Latvia for an official visit

Pope Francis arrived in Latvia on Monday, 24 September. He was greeted at the airport by President Raimonds Vējonis, Archbishop Zbigņevs Stankevičs and other public figures.

Week in Lithuania. President proposes amendments to restrict bailiffs' remuneration

Lithuanian President Dalia Grybauskaitė is putting forward amendments aimed at restricting bailiffs' financial remuneration to up to 15 per cent of the amount recovered.

BNN summary of the week: pre-election heat, rule of law in Latvia, Baltics prepare for Pope’s visit

BNN offers a summary of this week’s topical news in a variety of categories: Elections; Change; Stagnation; Fight; Visit; Investigation.

Court reschedules viewing of criminal case due to Non-citizens Congress leader’s poor health

Riga City Vidzeme Suburb Court announced today that the viewing of the criminal case in which leader of Non-citizens Congress Aleksandrs Gapoņenko is accused of inciting national hate will be postponed to a later date.

Producer prices in industry up 1.0% in Latvia in August

Compared to July, level of producer prices in the Latvian industry rose by 1.0 % in August 2018. Level of prices of products sold on the domestic market grew by 1.9 %, but of exported products – went up by 0.1 %.

Bishop: priest suspected of sexual abuse to be operated on in hospital

Pāvels Zeiļa, who is a priest of Rezekne Aglona diocese and the suspect in the criminal case regarding sexual violence and human trafficking, will undergo a complicated surgery on Friday, 21 September, as reported by Bishop Jānis Bulis.

Study: residents withdraw money from ATMs less often but in larger amounts

Every now and then discussions about dropping cash money altogether become active in society, AS PrivatBank representatives say.

HND Grupa design company, involved in Zolitude tragery, declared insolvent

Building engineer Ivars Sergets company HND Grupa, which was involved in the case revolving around the Maxima supermarket that collapsed in Zolitude, killing 54, not five years ago, has been declared insolvent, as reported by Latvijas Avīze.

Deputy Chief of State Fire and Rescue Service suspected of misappropriation

Latvia’s Interior Affairs Ministry’s Internal Security Bureau has detained deputy chief of State Fire and Rescue Service Ints Sēlis and one other official – a senior inspector, as reported by Panorāma programme of LTV.

Washington sanctions China for buying Russian military equipment

U.S. government has introduces sanctions against the Chinese army over a purchase of fighter jets and missile systems from Russia, despite a U.S. sanctions law targeting Moscow for attempts to sway in the 2016 U.S. election.

Autumn expected to begin soon in Latvia

Friday, 21 September, is expected to be warm in Latvia. Sun and considerable amount of clouds are expected, but not precipitation. Wind will draw in from the south, reaching a speed of 15-17 m/sec in western and central regions, as reported by Latvia’s Environment, Geology and Meteorology Centre.

Brexit: a finish line with no end in sight

Less than 200 days are left before Britain officially leaves the European Union. The state of the agreement between Britain and EU only serves to create more chaos, from which neither Britain nor EU, or even Latvia will benefit.

EU underlines to London: No-deal Brexit also option

European Union's top officials and member state leaders planned to push for a Brexit deal in October, while urging London to give ground on the issues trade and the Irish border by November, to avoid a no-deal Brexit.

Lithuanian PM, a presumable presidential hopeful, set to curb grocery price growth

Having chastised food retailers on many occasions for high grocery prices, Saulius Skvernelis, the Lithuanian Prime Minister, stepped forward in the bid to harness local supermarkets. The presumed presidential candidate of the ruling Farmers and Greens (LVŽS) has summoned this week executives of major retail food chains, scolded them and reaffirmed his pledge to rein in the edging up prices.

Industrial prices in Estonia – up by 3.4% on year

The industrial price index in Estonia has risen from August 2017 to August this year by 3.4%, official statistics show.

Latvian parliament approves transition to competence-based approach in education content

On Thursday, 20 September, Latvia’s Saeima approved in the final reading amendments to the Education Law, necessary for the gradual introduction of competence-based approach in education materials.

Latvian Saeima wants to disallow shareholders to work in company management board

On Thursday, 20 September, Saeima approved in the first reading amendments to the Credit Institutions Law that provide for multiple measures to enhance Latvia’s finance system and its long-term stability, as reported by the parliament’s press-service.

Aglone Council prohibits residents from organizing protests during Pope Francis’ visit

A protest against the Catholic Church’s ban on abortions and expression of shock in relation to the recent sex scandals involving Catholic priests was planned to take place in Aglone during Pope Francis’ visit, but the city council decided to disallow them.

Latvian parliament conceptual supports pension bonus indexation

On Thursday, 20 September, Saeima supported in the first reading several initiatives for a more rapid pension climb for several groups of pensioners, as reported by Saeima press-service.

Majority Saeima deputies support open president vote; UGF members fail to decide unanimously

On Thursday, 20 September, amendments to the Constitution regarding open election of the state president were approved in the second reading.

Four Estonian parties have strong support, enough to enter Riigikogu

Four Estonian parties are believed to currently have enough support to enter the Estonian parliament, a broad opinion poll showed, as leading parties compete for voter backing.

Vitol Group concerned over state of rule of law in Latvia; turns to state officials

One of the largest energy resource traders in the world – Vitol Group – has sent a letter to Latvia’s highest ranking officials, expressing deep concern over the rule of law and application of legislative acts in the litigation between LatRosTrans and Polocktransneft Druzba over the EUR 66 million worth technological oil.

As Pope heads to Baltics, more attention to Catholic sex abuse

The time, when Roman Catholic Pope Francis is set to visit the Baltics, greatly differs from the visit by Saint John Paul II in 1993. There is public resentment over the countries spending several million euros to host the trip of the pontiff and the Catholic sex abuse scandals are topic of discussion.

Officials asked to take responsibility for misuse of state resources

If misuse of state resources takes place, officials have to take responsibility and pay for the damages caused to the state, says Public Expenditure and Audit Committee chairman Andris Bērziņš.

Most read

Most commented

Newest comments