I’m called from a debt collection agency … now what?

You have received a call, the one that is usually an embarrassing call for you. Call from a receivable collection agency. You are probably also confused. Who are they and what do they want from me? What to tell them? What to do? How to settle this debt? Don’t worry, we answer these and any other questions about purchased receivables below.

The article deals with the subject in detail. If you’re just looking for the best line of credit and don’t have time to read, you can fill out a credit questionnaire right away.

Purchase and collection of receivables

Purchase and collection of receivables

Debt collection or debt collection is a series of creditors’ activities aimed at debtors in order to settle their arrears.

In recent times, in order to make payments easier and simpler, and primarily to preserve liquidity and solvency, companies, banks and other institutions are selling their non-performing debts to specialized agencies – collection and redemption agencies.

These agencies have been on the market since 2007. Most of them were engaged in factoring before, but later they expanded their business to buy overdue receivables. Telecommunications operators and card companies first went to sell their claims. With additional legislation, this is also facilitated by banks, which have been increasingly selling their non-performing debts since 2014.

Currently, there are about 20 such agencies in Croatia that are actively engaged in the collection of claims from both individuals and legal entities.

Some of the agencies for buying and collecting receivables are:

  • EOS Matrix, B2 Capital, Prima Group – Prima Solvent, Prima Collect; APS Croatia, Svea Ekonomi, Cordyline, Credit Express, Autus Investments, Coface, Credit Inkasso…

In addition to telecommunication operators, banks and card companies, utility companies also sell their debts.

When creditors sell their claims

When creditors sell their claims

By entering into a loan agreement, checking account, revolving card and any other product or service, you are obliged to settle your due obligations according to a pre-agreed period and according to a pre-agreed amount.

If the payment is missing, the lender will initiate debt collection processes. First they will send you written or SMS alerts, and then contact you by phone and invite you to pay. If you do not pay your debts after a certain period of time (usually 90 – 120 days), the creditor will initiate a forced collection process.

Depending on the institution, this process may vary


The process of forced collection at financial institutions such as banks, credit card companies, leasing companies and the like usually involves activating collateral. This is usually a document of enforcement: confiscation statements and debentures. Based on these collateral, a financial institution has the ability to initiate collection directly from your regular income (payroll, retirement) or from your transaction accounts or deposits. When we talk about activating a statement or a promissory note, we are actually talking about enforcing foreclosure on a salary or retirement and enforcing foreclosure on accounts – account blocking. If this does not contribute to the settlement of past due liabilities, the bank declares your debts overdue and cancels the previously concluded contract. This means that you have to pay the remaining principal with interest on arrears at once and in full.

All arrears that have passed the due date, ie overdue arrears, will be charged a default interest rate, the amount of which is legally determined, for 2018 being 7.09%.


The loan agreement was canceled in January 2015 and the principal amount is HRK 100,000. If the loan liabilities were not settled in the period from 2015 to the present, the debt increased to HRK 127,741.27, more precisely, increased by the amount of default interest.

Although non-financial creditors , such as telecommunications operators, do not have collateral such as a statement and promissory note, they do have other credible documents that can trigger the enforcement process and block your receipts and accounts.