Having drawn from the expertise of Atradius Collections' local offices, the International Debt Collections Handbook explains the different regulations and procedures for debt collections in Croatia.
As professionals in collection, Atradius Collections is in a position to provide first-class services and individual treatment and analysis of each case in order to successfully recover overdue debts. Our activity is based on checking debtors and taking appropriate action with regard to their existing financial situations and ability to pay. Our debt collection activities consist of:
- Checking debtors’ circumstances
- Delivering written reminders
- Making telephone calls
- Undertaking personal visits.
It is widely known that, with regard to late payments, the efficiency of debt collections depends upon timely and appropriate action. The longer the creditor waits before deciding to act, the lower the chance that the debt will be recovered.
The Croatian business culture is not to pay interest fees, so it is difficult to obtain payment using amicable processes. If, however, the debtor has agreed to pay the interest by prior agreement or negotiation, the client has to issue an invoice for the amount of interest, based on an appropriate interest calculation.
Debt collection costs
The potential for requesting payment of debt collection costs varies from case to case. Atradius Collections, as an agency, always quotes the debt collection costs in the first reminder, but usually we collect only the claim amount. There are some cases where the costs are collected, but the number of such cases is very low. When a client insists on payment of such costs, we are asked by the debtor to provide the invoice regarding that issued by the creditor. Based on that invoice, the payment should be received.
The Debt Collections Handbook presents a snapshot of Croatia's economic situation and covers the following topics:
- Legal procedures
- Motion for execution or lawsuit
- Insolvency proceedings
- Time frame and outcome
To read more about steps and procedures undertaken debt collections in Croatia: