The Future of Debt Collection and Intellectual Property Management

Published On : February 5, 2024

The Future of Debt Collection and Intellectual Property Management

Debt Collection Practices and the new law for debt in UAE

As per UAE debt collection laws and regulations, debt collectors follow the guidelines. These include contacting the debtor only during reasonable hours and avoiding harassment, not disclosing the debtor’s personal or financial information to third parties, and providing accurate information about the debt and collection process to the debtor. The debt collectors should obtain a court order before taking legal action and provide opportunities for the debtor to dispute the debt and seek legal advice. Failure to comply with these guidelines can result in legal action against the debt collectors. The guidelines aim to protect the rights of debtors. It ensures fair and ethical debt collection processes.

The new law for debt in UAE is the Federal Decree-Law No.19 of 2019 on Insolvency. It governs instances that involve people dealing with financial-difficulties as announced by the United Arab Emirates cabinet. The new law attempts to handle financial issues that belong to a natural person. The UAE debt collection laws provide borrowers with breathing-space, which allows them to evade criminal prosecutions for fiscal problems. Recently, the UAE improved the legal framework for debt collection through some vital changes in insolvency-law and bankruptcy-law. The UAE government decriminalized the issuing of bounced-cheques, and also introduced a new debt relief program. The program allows individuals struggling with debt to enter a repayment plan with their creditors with a maximum repayment period of four years. There is a possibility of extending the period up to 12 years in exceptional cases.

Revolutionizing debt collection through automation

Automating debt collection through AI tools has revolutionized the future of debt collection. At Beveron, we use AI tools that automate debt collection. The automation process optimizes the communication strategies between concerned parties to increase responses. It improves customer satisfaction and loyalty. A user-responsive website gets created, which makes it easy to navigate the user interface and user experiences. Customer analytics is used to understand the audience and devise strategies. Automatic payment notifications are generated for the clients and the legal resources get automated through automation. It ensures the compliance policies and guidelines of KYC and AML before conducting the financial transactions.

The Role of Call-Centre Options in Debt Collection

The role of call-centre options in debt collection is quite important as they are responsible for representing the company and working with the customers to find a mutually acceptable solution. The call-centre representatives work with a required combination of communication skills, financial knowledge, and empathy. A lot of processes get streamlined through call-centres and these include recording customer information, tracking payment history, and generating reports. The collection representatives are familiar with relevant laws, regulations, and policies.

Effective debt collection in a call-centre setting happens through the application of active listening, empathy, clear communication, understanding the customer, offering payment options, following up, being compliant, and proper use of technology and Customer Relationship Management (CRM) to resolve the debt. It forms a huge part of the future of debt collection without much issue.

Debt Management under the new UAE Debt Law

The new UAE debt law got launched in January 2020, and the new bankruptcy legislation got enacted to address and safeguard people experiencing financial troubles. The new UAE Debt law and legal regulation safeguard UAE residents and Emiratis who experience financial difficulties but cannot repay their obligations. Under the new law, the court-approved repayment options come with more lenient conditions such as reduced interest rates.

As per the new financial bankruptcy rules of the UAE, the court designates an expert to handle the processing of debts. It gets done in collaboration with the debtor and their creditors. The court-appointed-expert designs a three-year debt-settlement plan. Upon the plan completion, all financial responsibilities will get met under the agreed-upon terms between debtors and creditors based on the expert plan. The new UAE Federal Debt Legislation provides two channels to resolve financial bankruptcy. It gets accomplished by following a plan for the settlement of financial obligations, bankruptcy, and fund-liquidation. The new legislation safeguards the debtors from legal prosecution and decriminalizes the financial responsibilities of debtors or bankrupt individuals. It provides them a chance to work, be productive, and be financially stable after going bankrupt. Eventually, they can pay off the debts from the work they do legally.

Ensuring proper Debt Management

As per our understanding at Beveron Technologies, the new UAE federal debt legislation provides two procedures to resolve individual financial bankruptcy. These two ways include a plan to pay financial commitments or insolvency, and liquidation of finances. The court appoints one or more specialists to help the debtors through either of the procedures.

Conclusion

Visit www.beveron.com to learn more about the products and services that we offer in the UAE. We offer Smart Legal Counsel to deal with anything regarding your bankruptcy cases or smart debt management.