Legal outsourcing of loan portfolios for financial companies

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Ukrainian banks and non-bank financial institutions, in particular microfinance organizations (MFIs), often face defaults on loans from individuals and legal entities. Loans can be:

• mortgage (for residential and commercial real estate);
• automobile;
• investment loans for business development and purchase of fixed assets;
• consumer;
• educational.

A separate category is microloans with minimal collateral requirements but high interest rates.

The loan portfolio of a bank or MFI is usually considered to be the balance of outstanding debt on loans issued - overdue or on which there are doubts about repayment.

Financial institutions can choose one of the ways to enforce collection of unpaid debts, as well as fines, interest and penalties:

• sell the troubled debt to a factoring (collection) company for a small amount of money;
• hire a staff of additional lawyers who will be engaged in the collection of loan portfolios;
• order outsourcing of services in a law firm.

The last option is the best, as hiring a staff of in-house lawyers will require costs for organizing workstations and paying salaries. If you give the authority to collect purchased debts to debt collectors, you will also lose money.

The company Legal Solutions offers comprehensive legal assistance in the collection of problem loans. The office is located in Kiev, it is possible to cooperate with financial organizations from other cities of Ukraine.

Legal outsourcing: what is included in our services

Licensed attorneys who help financial companies to collect debts:

• provide legal advice;
• analyze documents, loan agreements;
• collect evidence;
• represent the client's interests in a dispute with the debtor - individual or legal entity;
• participate in pre-trial collection of borrowed funds;
• monitor debt repayment;
• formalize the financial organization's ownership of the collateral.
• prepare a lawsuit to the court, represent the client's interests in court;
• If necessary, they are engaged in drafting complaints against court decisions in the appellate and cassation procedure.

If it is impossible to do without recovery of funds in court, we will carefully make sure that during the consideration of the case did not violate the principles of honesty and objectivity.

What are the advantages of outsourcing debt collection companies

Experienced lawyers who specialize in financial issues and debt:

1. Most likely have already repeatedly participated in similar disputes and will be able to help solve the problem with minimal monetary losses.
2. Are able to competently draw up documents and analyze previously concluded contracts.
3. They are well versed in legislative norms, unlike collectors resolve situations within the legal framework.

In addition, according to the laws in force in Ukraine in some cases to represent the interests of financial institutions in court can only licensed lawyers. To obtain the relevant certificate, an in-house lawyer will need from 9 to 12 months. When considering cases in which the amount of the dispute is more than 880 thousand hryvnias, the participation of a representative is mandatory, from 170 thousand to the specified amount - at the choice of the financial organization, less than 170 thousand - do not require the involvement of representatives in the procedure.

Why outsourcing legal services on solving credit issues should be ordered in Legal Solutions?

1. We collect debts for financial companies exclusively on legal grounds.
2. A number of the company's employees have attorney's certificates and have the right to be representatives of financial institutions in courts of first, appellate and cassation instances.
3. Before starting cooperation we draw up a detailed project plan, provide a report with the recorded results of measures.

If you are not ready to suffer losses from the transfer of the right to collect debts to collection services and want to save money on hiring in-house lawyers - contact our experts. You can get an initial consultation by phone or in person at the office of the Law Firm or at your location.

Legal outsourcing of loan portfolios ✓ Practice of more than 10 years ✓ Legal assistance ✓ All citizens ✓ Professional and competent ✓ Throughout Ukraine

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