Fake contact data and documents are the main impediments in terms of debt recovery, as some 45 percent of debtors in Coface’s portfolio are not to be found, according to company officials.
The recovery rate is higher based on amicable talks, before cases get to court, when some 50 percent of debts are paid. Representatives of debt recovery companies notify debtors, call them, or visit them to collect arrears.
“Individuals delaying their payments owe an average €600-€700 to lenders. Some 80 percent of individual debt arrears are to the banking system,” according to Coface Romania’s Debt Recovery Manager, Cristian Coman.
