Debt Collection Agency Romania
Amicable Debt Collections Romania
1. General information
Cosmopolite Collections maintain a professional collection process, focusing on the relationships between our clients and their debtors at all times. Our team of collection specialists carry out the collection process in-house, contacting debtors both verbally and in writing whilst adhering to federal and state laws.
1.2. Local agents
We can employ local agents to make field visits to debtors in all areas of the country, primarily to assess their businesoperations and location.
Our local agents can also negotiatduring meetings with the debtors, assess their solvency, conduct financial investigations and obtain credit reports.
Our agents are based in our Bucharest office and, if necessary, will make personal visits at the request of our clients.
1.3. Interest
According to Romanian law, the interest rate for international contracts is 6%. If a contract has been drawn up betweenour client and the debtor, Cosmopolite Collections can apply the interest that is stated in the contract.
1.4. Debt Collection Costs Romania
In Romania, the chances of receiving collection costs are very low.
2. Retention of title
Romanian law foresees retention of title (ROT) as a possible security tool. In order for a creditor to exercise it, the ROT clause must be provided in the contract and registered in the Electronic Archive of Movable Assets. T
The procedure is usually done by authorised agents in Romania and can be provided by Cosmopolite Collections’ agents upon receipt of a proper power of attorney.
3. Legal collections Romania
3.1. General information
We apply simplified procedures if the debt is acknowledged by the debtor through signed and stamped invoices and a contract.
A normal court procedure occurs after we have established a conciliation procedure, requiring more time and higher costs. There are two or three jurisdictional levels, depending on the value of the debt and the contested procedure.
All parties can appeal once or twice, requiring one judge at the court of first instance and two or three judges in the case of appeals.
3.2. Required documents
We require originals or certified copies of all the documentsthat must be, in special cases, authorised by a notary.
The documents include:
- An original power of attorney
- Copies of invoices
- Copies of contracts
- Copies of orders, confirmations and delivery notes
- Copies of general conditions of sales, should there be any
- Copies of any other correspondence that may verify
the claim.
3.3. Legal dunning procedure
The legal dunning procedure is only required by law in the payment injunction procedure before filing the application. It is used as a last approach before starting the procedure.
3.4. Lawsuit
Lawsuits are used for urgent procedures and have lower costs.
The debt must be acknowledged by the debtor through signed and stamped invoices and a contract. A normal procedure occurs after we have started a conciliation procedure and involves more time and higher costs.
In 2012, the Civil Procedure Code was changed to allow for the simplification and shortening of legal proceedings.
3.5. Appeal
The party that loses can appeal the entire or part of the decision and will have to pay half of the court cost of the first instance. An appeal is then made at the next level court.
3.6. Debt Collection Costs Romania
An initial local debt collection fee as well as all court, translation and transport fees are included in the court suit.
The court fee is usually adjudged. The possibility of recovering the lawyers’ fees and translation costs is very low.
The majority of courts reject such a request.
3.7. Expected time frame
Most cases last between one and a few months, depending on their locations. Common law procedures last several months.
A payment injunction lasts 45–60 days. Insolvency proceedings take anywhere from one to four years, and a preventive concordat procedure will take 18 months.
3.8. Interest and costs in the legal phase
In case the interest is mentioned in the contract or otherwise acknowledged by the debtor, it will be enforced; otherwise, the legal interest rate of 6% per annum will apply.
Cosmopolite Collections always ask for legal costs to be added to the debtor’s costs.
4. Enforcement
An enforcement bailiff costs EUR 400–EUR 1,200. If the debtor does not pay voluntarily after receiving the judgment sentence from the court, a lawyer will have to file for a new legal proceeding.
A forced execution proceeding or enforcement is needed to search the debtor’s assets or banking accounts, and is performed only by a legal executor, who can be an individual person or a specialised office.
4.1. Enforcement in movable property and immovable property
These are done after a bailiff’s evaluation and with a local expert’s help.
4.2. Expected time frame
Most procedures last for a few months, depending on the assets.
5. Insolvency proceedings
5.1. General information
These are opened at the request of either the debtor or the creditors. A judicial administrator is appointed to control the debtor’s activity. The administrator is guided by the judge.
5.2. Proceedings
A creditor can ask for insolvency proceedings to be opened, or they can lodge a claim to an already opened insolvency proceeding.
The insolvency proceedings will be closely monitored by a lawyer and may require the creditor to be present at hearings and creditors’ meetings.
5.3. Required documents
Cosmopolite Collections require the originals or certified copies as in the legal proceedings:
- An original power of attorney
- Copies of invoices
- Copies of contracts
- Copies of orders, confirmations and delivery notes
- Copies of general conditions of sales, should there be any
- Copies of any other correspondence that may verify the claim.
5.4. Expected time frame and outcome
Insolvency proceedings usually last about three years. If the debtor’s debt is reorganised, then payments can be made to the creditors.
If the debtor becomes bankrupt, then their assets are sold and the creditors are paid from the proceeds.
5.5. Limited companies
They are subject to reorganisation or liquidation.
5.6. Unlimited companies / individuals
There is no legislation in place for individuals.
5.7. Rescission
Only transfers of the debt that were made with the intention to defraud the creditors up to three years prior to the insolvency can be cancelled.
6. Arbitration and mediation in Romania
This process is becoming more popular and must be done through a lawyer or a mediator.
Arbitration is usually heard by the Court of Arbitration under the Chamber of Commerce and Industry of Romania.
A mediation institution was created in 2007 and mediators are authorised to work, but it is still in its early stages in Romania. Arbitral court procedures are quite expensive.
Romania is a country located in Southeast Europe. Its capital city is Bucharest. Romania has 41 counties and 1 municipality. The government system of Romania is a parliamentary republic. The official language of Romania is Romanian, and the currency is the Romanian leu.
Collecting debts in Romania can be challenging for foreign businesses due to a number of factors, including the country's economic and political instability, the complexity of the legal system, and the difficulty of enforcing judgments. There are a number of debt collection agencies operating in Romania, and the industry has been in existence for several decades.
The national credit bureau in Romania is the Central Credit Bureau, and some of the private credit reporting companies operating in the country include CRIF, Equifax, and Experian. Debt collection laws in Romania are generally uniform throughout the country, although local laws may sometimes apply.
There are several benefits to using commercial debt collection services for Romania:
- Expertise: Debt collection agencies have specialized knowledge and experience in recovering debts, which can be particularly useful for foreign businesses that may not be familiar with the local legal and cultural environment.
- Efficiency: Debt collection agencies can often recover debts more quickly and efficiently than businesses can on their own, as they have the resources and expertise to pursue multiple avenues for recovery.
- Cost-effectiveness: Using a debt collection agency can be more cost-effective than trying to recover debts on your own, as you can avoid the time and expenses associated with pursuing legal action.
- Risk reduction: Debt collection agencies can help to reduce the risk of non-payment by providing credit risk assessment and monitoring services.
- Language skills: Multi-lingual debt collectors can communicate effectively with Romanian debtors, which can be particularly helpful for foreign businesses.
- Local presence: Debt collection agencies with local presence and knowledge of the local legal and cultural environment can be more effective at recovering debts in Romania.
- Online services: Many debt collection agencies offer online tools and services, such as 24/7 debt recovery report websites, which can be convenient and efficient for creditors.
Our debt recovery agency has a very high success rate in Romania thanks to our multi-lingual debt collectors located in the country and our 24/7 online debt recovery report website. We have local debt collection managers in the cities of Bucharest, Cluj-Napoca, and Timișoara.
