Debt Collection Service
Q: What is the meaning of accounts receivable?
Money or money-in-kind owed to a business or entity.
Q: Is there a minimum debt amount for your company to take up a case?
You are welcome to contact us to facilitate consideration on a case-by-case basis.
Q: How long does it take for you to handle each case or recover a debt?
We take immediate action upon your engagement, and generally require a leadtime of at least 90 days. The actual length of time required for a case depends on its complexity, availability of supporting documents and whether the debtor can be reached.
Q: What will you do if the debtor is domiciled outside Hong Kong?
We collaborate with a network of overseas associates.
Q: Do you accept overseas debt collection cases?
Yes. We have built an international network of associates.
Q: How do you reach the debtors during the collection process?
We usually make contact by telephone, post and/or SMS. Visits may be arranged occasionally if deemed appropriate (applicable only to selected locations).
Q: Will you offer a discount to the debtor?
We do not make haircut or accept repayment schedule proposals by debtors unless with your prior consent.
Q: Do we need to get your consent if we wish to give a discount to the debtor?
Yes, and we will further advise you on whether the proposed discount is reasonable and fair in your particular case.
Q: How soon will you reimburse us if the debtor makes payment to your company?
Generally, we demand the debtor to pay to you directly. In some rare occasions, if any sums are paid to us, we will reimburse you within 5 business days.
Q: Do you accept collection assignments for debts that are a few years old?
Yes.
Q: How can we know the status and development of our case?
We will keep you posted from time to time. You may also contact us to enquire.
Q: Will you report to us regularly on the status and development of our case?
Yes.
Creditor’s Actions
Q: Do we need to inform the debtor before appointing you to collect the debt for us?
It is legal for you to appoint an agent to collect a debt without informing the debtor, unless you are a bank.
Q: May we engage a lawyer simultaneously when you are collecting the debt for us? Do we need to pay the service fees to you if the debtor pays through the lawyer?
You may engage a lawyer and us at the same time. You need to pay us a service fee according to our service agreement, regardless of how the debtor pay to you.
Q: What information do you need?
We will guide you on a case-by-case basis.
Q: May we deal with the debtor directly after assigning the case to you?
It is not advisable for you to deal with the debtor directly after you have assigned the case to us. If the debtor approaches you directly, you should refer him to contact us.
Q: May we assign a single case to more than one debt collection agency simultaneously?
Definitely not. It will be very confusing and difficult for you to manage, and you may require to pay fees to both agents. You should only appoint another agent after the previous agent has terminated his job.
Payment/ Service Fee
Q: If we deal directly with the debtor during the collection period and get some payments, do we need to pay for your service fees?
Yes. Usually, debtors will pay to creditors directly, and not through debt collection agents, though it is the agent who has conducted the collection activities.
Q: If we are approached by the debtor to offer us other settlement methods, e.g. return of goods sold, supply of debtor’s goods or services to set off the debt, payment of overdue interest, business deals, money or other rewards, do we still need to pay your service fees?
Yes. You must consult us before accepting any offers from the debtor. We will help you determine if the offers are reasonable, while evaluating the monetary equivalent of the offers, which will form the basis of calculating our service fees.
Q: Is there a minimum charge for your collection service?
No. We will discuss with you and reach a mutually-agreed fee on a case-by-case basis.
Q: Our debtor immediately made a payment after the collection process started, do we need to pay a service fee to you?
Yes. The service contract between us stipulates the payment of our service fees upon signage.
Q: Beside your service fees that we have agreed, will there be any extra charges that we have to pay?
We will not charge any extras that have not been approved by you.
Legal Actions
Q: Will you sue the debtor?
No.
Q: Will you advise us to take legal actions?
We are not obliged to advise you to take legal actions.
Termination of Contract
Q: May we stop the service contract if the debtor wishes to deal with us directly?
Your service contract with us can only be terminated according to the terms and conditions in our service contracts.
Q: May we stop the service contract without giving any reasons?
Your service contract with us can only be terminated according to the terms and conditions in our service contracts.
Q: Can you terminate the contract from your end?
Yes. As stipulated in the service contract, we may initiate to terminate our contract under certain circumstances, including, but not limited to, failure to access required information or supporting documents, or to reach the debtor according to contact information provided by the client.
Q: Will you still charge me if you terminate the contract.
It all depends on the terms and conditions in our service contract.
Post Collection
Q: Will you subcontract our appointment to other people?
No.
Contact us to discuss your needs and we will provide a proposal best fit for you at no cost to you.
Disclaimer:
All questions and answers as listed are for reference only. They do not form parts of our service contracts or agreements with clients. The terms and conditions as stipulated in the service contracts or agreements between clients and BIBO shall prevail.