Creditreform operates a global specialist International debt collections 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.
Main reasons why a local country debt recovery agency is so important rather than trying to recover from the UK are as follows:
– Location of office in Azerbaijan
– Number of staff
– How long been operating in Azerbaijan
– What type of debts do you recover? Do you do commercial (B2B) and consumer (B2C) debts?
We recover all types of debts, i.e., commercial, consumer, state etc.
– Statute of limitation in Azerbaijan
3 years in relation to contractual obligations.
– How EU (European Union) laws effect debt collection in Azerbaijan?
There is no effect of EU laws in Azerbaijan from the legislative and practical standpoint.
– How many company registries in Azerbaijan for businesses? (i.e. UK just has 1 central registry)
There is one state register of commercial legal entities, maintained by the Ministry of Taxes.
General comments regarding process in Azerbaijan for debt collection and how differs from UK / other European countries:
– What is the debt collection process in Azerbaijan?
Generally, the collection process comprises of the following phases: (i) pretension (i.e., sending official letters and verbal inquiries with the debtor); (ii) court litigation; and (iii) enforcement of court decision.
– Average length of time to collect?
There is no established record of length for collection processes. This will mainly depend on many factors, such as amount of debt, parties involved, instance of courts, approach of the enforcement authority etc. In general, it make take any time between 2-15 months.
– Can late payment fees / interest be added to claims?
Yes. If the amount of the late payment fees/interest is not stipulated in the agreement between the parties, then borrower(s) will be under the obligation to pay 5% interest on annual basis to the creditor(s).
– Details on legal service / legal process in Azerbaijan
Azerbaijan is republic with a legal system of Roman-German (European) legal system. With regard to debt collection, if the parties fail to settle a claim in the pretension (pre-court) phase, one of them will be submitting a claim in respective court. Azerbaijan has three tier court system. The first tier includes general courts that resolve civil and criminal cases of all severity. The second tier are appeal courts that hear appeals from such first-instance courts on the points of law. The Supreme Court is the court of cassation, hearing the cassation appeals from the appeal courts. The Constitutional Court of Azerbaijan hears cases involving a breach of constitutional rights, as well as interpreting laws.
Currently, Azerbaijan has about 20 treaties in force regarding the mutual legal assistance matters, which cover recognition and enforcement of foreign court decisions as well. With regard to some countries recognition of courts orders and their enforcement in Azerbaijan is relatively fast and easy compare to others. Regarding other countries, in practice, mutual reciprocal approach is the principle of authorities, i.e. where the counter-party courts recognize and enforce decisions of Azerbaijani courts and there is a warranty in the central state level, Azerbaijani Ministry of Justice submits the case for hearing and final decision by the Supreme Court.
Further, as a member of the New York Convention for the Recognition and Enforcement of Foreign Arbitral Awards, Azerbaijani courts recognize arbitral awards obtained in foreign jurisdictions, provided that all the formalities and in certain cases, the merits are generally compliant with Azerbaijani laws.
There are many unique requirements to recovering international debts in all countries including Azerbaijan debt collection services which differ from the UK debt collection agency services and therefore it is very important that cases are handled directly by our expert international debt collection agencies and not from debt collectors UK. This method of international debt collection sets Creditreform aside from the competition who in many cases try and recover debts from a UK debt collector 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.