Dunning! Dunning! Dunning!
Urgently offended the customer
Don't rush, the customer doesn't pay, the boss doesn't follow
“ Both ends are blocked ”
E-mail and phone call! I was warned Illegal ？！
Default background
Creditor: a knitting net industry limited company in Shandong
Debtor: a company in Vietnam
Amount in arrears: USD 637324.00
Aging of delinquency: one year
In May 2020, Shandong Company and Vietnam Company reached an agreement on the export of woven bags, and Vietnam Company promised to pay 30% of the payment in advance as a deposit, 20% of the payment after loading, and the remaining balance will be paid after receiving the goods.
Repeated breach of contract in payment stage, be alert!
Shandong Company fulfilled the delivery obligation according to the contract, but in the process of cooperation, Vietnam Company repeatedly breached the contract, and only paid the deposit for goods and part of the payment for goods after loading. Every time Shandong Company made a call for payment, Vietnam Company only paid a small amount of payment for goods, and the balance payment was delayed for various reasons. As time went by, Vietnam Company showed more Lai makes a show and refuses to pay with reason 。
Calling for payment by phone or mail is warned to be illegal and hold back!
Shandong Company was very regretful for its random delivery behavior, but more angry was that Vietnam Company defaulted on payment. So during the self collection period, he frequently called and emailed Vietnam Company to ask for payment, but received a warning email from the debtor and attached Alarm record , warning that Shandong Company's behavior has constituted harassment, and if it continues, it has the right to impose administrative sanctions on it through the police in accordance with the Vietnam Collection Law. Shandong Company is worried about the impact on its business exported to Vietnam, and lacks the understanding of local collection laws and regulations, so its own collection means are limited, which is convenient for entrustment in July 2021 Harry handle.
Collection process
Preliminary contact, the debtor has obvious intention of malicious default
1. The collection lawyer contacted the debtor at the first time. The other party claimed that the goods provided by the creditor had quality problems, and sent a video of quality defects to the collection lawyer by email.
The collection lawyer immediately verified with the creditor, and the debtor refused to pay for this reason before the creditor informed. As agreed, The defective product rate is within the normal range of 1% - 3% , and had proposed a replenishment plan, but the debtor did not accept any compensation plan and refused any communication.
On this basis, the collection lawyer made a preliminary judgment The debtor's malicious default intention is obvious The conventional friendly negotiation collection means may have little effect on it. The collection lawyer decided to seek other methods from outside to exert pressure.
External investigation to find a breakthrough for pressure
2. The collection lawyer found that it was a subsidiary of a medium-sized enterprise in Vietnam by obtaining the debtor's enterprise credit report. The collection lawyer used his own channel to conduct a comprehensive investigation on the parent company and found that its reputation in the industry was excellent, and it was recently preparing for listing in financing.
Through multiple searches, the collection lawyer contacted the person in charge of the medium-sized enterprise, provided him with evidence of the default of his subsidiary, and repeatedly communicated and pressured him to consider the negative impact on his reputation and listing plan if his subsidiary's default behavior was prosecuted publicly. I hope the other party can help to put pressure on them and solve problems.
Top down pressure for payment collection
3. After several communications with the parent company of the debtor, remarkable results were achieved: the debtor's responsible person actively contacted the collection lawyer to negotiate the repayment, and the other party provided a new bill, removed the products with quality defects, and the repayment amount was USD 619478.928 And gave a repayment plan of 12 installments.
4. The collection lawyer rejected the other party's plan to repay in 12 installments and put strong pressure on it. After several rounds of negotiations The repayment period is shortened to 6 installments , and signed the repayment agreement. The collection lawyer will continue to follow up the progress of the case. In October 2021, the debtor paid the first installment of $100000, and in March 2022, the debtor paid the last installment of $119478.928. So far, the case has been successfully concluded.
Case summary
1. Vietnamese collection regulations
(1) Do not make repayment request to the person without repayment obligation;
(2) In case of telephone harassment, offense, distortion of debt facts, humiliation of debtor, etc., administrative sanctions or criminal liability may be imposed depending on the seriousness of the behavior;
(3) The limitation of action in Vietnam is 3 years.
In this case, the creditor's self collection was improperly used, which constituted harassment, and almost suffered administrative sanctions for violating Vietnamese collection laws and regulations. Due to lack of understanding of local laws and regulations, enterprises are prone to make mistakes in self collection, and the collection effect is very poor. under these circumstances, Entrusting a professional third-party organization for collection is the best choice 。
2. Stick to the principle and carefully select the delivery time
When dealing with overseas buyers, enterprises must strictly comply with the contract and fulfill their respective obligations; If the buyer violates the contract, be alert and carefully choose whether to interrupt the cooperation process.
The debtor in this case repeatedly violated the contract payment agreement, which did not arouse the creditor's vigilance, and still delivered goods to it, giving the debtor an opportunity to maliciously default.
3. Customer back transfer and credit investigation are indispensable
In this case, the creditor only knows the contact information of the debtor's enterprise, and has little effect on pressing it for collection. However, the debtor has a parent company that can put pressure on it; The collection lawyer found the strong pressure point by retrieving his credit report to facilitate the case payment collection.
An enterprise can inquire whether a counterparty really exists through a professional credit reporting agency, and at the same time, it can learn about the counterparty's information in multiple dimensions by accessing the counterparty's credit report, so as to grasp the counterparty's situation in advance and prevent transaction risks in advance.
(Source: Foreign trade risk control Harry)
The above contents belong to the author's personal views and do not represent Hugo's cross-border position! This article is reproduced with the authorization of the original author. Reproduction requires the authorization of the original author.
