Armenia Debt Collection – No Win No Fee
Creditreform operates a global specialist International debt collection service. We have local offices and fully approved expert international debt collection agency partners in every country worldwide. All our International debt collection agency partners and offices operate on a No Win No Fee basis charging an agreed commission against monies recovered only.
– Location of office in Armenia
Yerevan
– Number of staff
10
– How long been operating in Armenia
Since 2009
– What type of debts do you recover?
Both commercial (B2B) and consumer (B2C) debts
– Statute of limitation in Armenia
3 Years from the day due
The period of limitation for the bringing of certain kinds of legal action to the Court is 3 years in Armenia, since the time debt became due and payable by the Debtor. If a Creditor will miss this period, a Debtor may ask to the Court to implement the statute of limitations and the debt will be acknowledged void by the Court.
– How EU laws effect debt collection in Armenia?
EU laws will not have any impact in Armenia
– How many registries in Armenia for businesses? (i.e. UK just has 1 central registry)
Only 1 registry
– What is the process in Armenia?
We need documents in originals to be signed by the debtor / email scans may also work for some cases/ and also for each case we will need POA directly from the client, we can also have POA from the 3rd party if they have POA which entitles them to re-authorize.
– Average length of time to collect?
Out of court collection from 10-40 days
Court case process is 2-3 years average
– Can late payment fees / interest be added to claims?
Yes, its 0.02 per day
- To start a debt collection process we will need power of attorney (POA)
Why we need this and what kind of POA will work for the process?
We need this POA provided by the creditor to one of our employees /who will be directly engaged in the collection process / Or if a partner who is referring a client to us /let’s say the Agent/ has a POA from the creditor with the right to re-authorize to the third parties, then the Agent can Also provide us POA. In this case we would also require seeing the original POA provided to the Agent, to state the right of re-authorization.
Why we are asking for this
- Per the code of Advocate’s ethics of RA, the attorney shall have a POA to act on behalf of a client, it’s an obligation. While it’s not very often for the debtors to take much attention to this, if they will file a complaint to Chamber of Advocates, then the Attorney will be will be prosecuted by the Chamber.
We understand that this is not the case in most of the countries but those are the regulations acting in Armenia and if the Creditor wants start collection process we must obey the law.
We would need POA for each client. No matters the number of cases, i.e 1 POA for multiple cases.
- Successful collection requires proper documentation of the debt
Again we would hereby like to speak about another specific aspect for the debt collection in Armenia which distinguishes Armenia from other countries.
It is very important to have documents confirming the debt signed by the Debtor. As such it might serve as an agreement, contract, invoice etc..The key is a signature placed by the debtor on such document, thus it’s greatly minimizes the risk of the fact that the debtor might later return to us with an announcement that products has not been delivered or services were not provided. This becomes more important when we start a court collation, where we also would require documents in hard copies and apostilled according to The Hague Convention Abolishing the Requirement of Legalisation for Foreign Public Documents.
There are many unique requirements to recovering international debts in all countries including Armenia debt collection services which differ from the UK and therefore it is very important that cases are handled directly by our expert international debt collection agencies and not from the UK office. This method of international debt collection sets Creditreform aside from the competition who in many cases try and recover debts from a UK office base only. Using the local offices and partners enables us to achieve a far greater success rate and our No Win No Fee service together with competitive commission rates against monies recovered only ensures you get the best service.
