Kruk S.A.

In the first half of 2010 the KRUK Group brought close to 67,000 actions for payment,  twice as many as in the corresponding period of 2009. Actions are brought against those debtors of the KRUK Group who evade contacts with debt collectors and refuse to resolve their debts amicably.

- „Our main goal is to reach an amicable solution. However, we have been consequently bringing actions to court against all those who persistently avoid contacts with the creditor and debt collector and are not interested in reaching an agreement concerning resolution of their debts,” explains Piotr Krupa, KRUK SA CEO.

And the above are not just idle words. Since January this year, Poland’s largest receivables management company has submitted more than 48,000 accounts for collection by court enforcement officers. The above is an increase by 26% in comparison with the first half of 2009. Some of the past due accounts are processed via the Lublin-based e-court under enforcement of past due debts by electronic means. Since the start of the above institution in January 2010, the company has brought several thousand actions for payment. E-court guarantees quick processing of simple small-value cases. The judgement is usually issued within a few days.

The higher number of actions and enforcements by court enforcement officers are a result of the growing number of debts serviced by debt collection companies. During the boom year 2008 Poles incurred a lot of debt.  The next year brought an economic slowdown and many people found themselves in dire straights. The debts of some of them were referred for collection by receivables management companies.

However, not every debt needs to be brought to court and enforced by court enforcement officer. By reaching an agreement with KRUK SA and by signing a settlement, people with debts have an opportunity to resolve their debt problems by paying small monthly instalments. Their amount is suited to the debtor’s current financial capabilities. So far, more than 200,000 people have taken advantage of the possibility to repay their debts in instalments.

There are plenty of advantages connected with signing a settlement with a debt collection company. For many debtors it is an effective way to go out of the debt trap. By signing an agreement to repay the debt in instalments, the debtor may avoid additional judicial and enforcement costs.

However, when a debtor avoids contact, refuses to pay and to co-operate, such debtor takes away from himself the chance to resolve the problem amicably and the only thing a debt collection company may do in such case is to refer the debt for judicial collection and enforcement by court enforcement officer.