When a Creditor Needs to Collect Debt in Spain


Debt collection is regulated in Spain and other countries in Europe, placing curbs on the ways the collectors can deal with the debtors. Generally, the regulations place strict limitations on the time when the collection calls can be made and their frequency.

Law in Spain allows a creditor to send a claim for payment if the customer does not pay. The claim may include an order confirmation, a bill and an invoice. The general terms and conditions must be communicated to the customer in the correct manner. Moreover, the terms must conform to statutory requirements. If the customer fails to pay within the term for payment, the creditor may demand the payment.

It is important for creditors to be tenacious, clear and fast. One of the strategies debtors use to avoid making payment is to try to gain time with vague arrangements for payment or disputes. The language used in the correspondence must be very clear to avoid such issues.

If the debtors do not pay even after a formal demand, the creditors can bring in the professional collectors. It makes more sense if the creditor is from a country outside of Spain. The collectors’ employees will have command of Spanish which they can use in fruitful discussion with the debtors. Moreover, they can also be expected to be well up on Spanish laws, regulations and culture.

Knowledge of local laws and culture is imperative for a collector or creditor; else they stand the risk of getting sued themselves. Spanish law gives priority to protection of debtors. If they cross the limits set by law, the debtor can always take advantage of it and take them to court. A professional collector who is well-versed in Spanish laws would know how to deal with a debtor effectively while keeping to the law.

In case telephonic conversations and the correspondence fails to pursue the debtors to repay, professional debt recovery services in Spain can initiate legal proceedings. Spanish law is complex and there are several ways to bring legal action – Proceso monitorio, Jucio Verbal, Jucio Ordinario, Jucio cambiario among others.

Professional collectors maintain a team of legal experts, unlike businesses, which lack such skills and resources, making collection harder for them. It does not come as surprising that most creditors prefer to transfer the debt account to collectors now.