Debt Collection in the Philippines

Struggling with debt collection in the Philippines? Oddcoll is at your service to facilitate prompt and hassle-free recovery from your Filipino debtors. We empathize with the annoyance that emerges when international clients don’t clear their invoices. Traditional practices and pressure techniques often fall flat. Launching your case with us takes only a few moments, and it places a local Filipino debt collection expert right where your debtor resides. It’s a straightforward, speedy, and efficient approach to debt collection in the Philippines.

Can Oddcoll assist me with debt collection in the Philippines?

Definitely! Initiating the debt collection process against your Filipino customer is a breeze with Oddcoll. Simply upload your case to us and set up your account, a process that takes less than a minute. Our Filipino debt collection specialist, proficient in the ins and outs of Filipino debt collection legislation and local business culture, will begin exerting pressure on your debtor locally in the Philippines. Communicating with your debtor in their local language amplifies the probability of a successful outcome.

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What are the costs associated with a debt collection case in the Philippines?

You only bear costs if your Filipino claim is successfully recovered, equating to 19.5% of the total amount collected. So, you’re guaranteed to receive 80.5% of the recovered sum. Oddcoll operates on a monthly membership model, but you’re welcome to test the service risk-free for 30 days without any membership fee. During this trial, you can initiate as many cases as you wish without any startup costs. Rest assured, these cases will be fully managed and you’ll only incur costs if we succeed in recovering your funds.



What measures will you adopt to recover the debt in the Philippines?

We undertake several steps. Primarily, we aim to secure payment from your Filipino client during the amicable collection phase in the Philippines, avoiding any legal proceedings. This is achieved through our in-depth understanding of Filipino laws, regulations, and business etiquette. Measures taken can encompass:

  • Credit evaluations
  • Direct contact
  • Pressure on the debtor
  • Negotiation
  • Home visits
  • Utilizing legal channels and petitions where appropriate
  • Insolvency procedures
  • Enforcement of claims.

Will my customer relationship in the Philippines be affected negatively?

Not at all. The debt collection actions carried out are always in line with sound Philippine debt collection practices and regulations. Our local specialists are well-versed in Filipino customs and demonstrate the utmost professionalism, ensuring that your customer relationship is preserved and handled in the best possible manner.

What are the steps after I have initiated my Philippine debt collection case with you?

The process is straightforward:

1, Simply upload your unpaid Philippine invoice to us.

2, Our team in the Philippines will begin pursuing your Filipino debtor to collect the debt. You can track the progress on the platform and receive notifications when there are updates on your case.

3, Upon successful recovery of the debt, the money will be transferred to you.


(See more om how it works about the process.)

(See how easy it is to get started – 55 sec!)

How likely is it that my Philippine debt will be recovered?

Based on historical data, we’ve successfully resolved approximately 75% of our cases in the Philippines. However, several factors can influence the complexity and outcome of a case, including the financial status of the Filipino debtor, potential disputes regarding payment obligations, among others. The age of the claim also significantly impacts the success rate. The sooner a case is escalated to debt collection, the higher the chances of a successful outcome.

How long does the debt collection process typically take in the Philippines?

Providing a general timeframe can be challenging, as each case is unique. Some debtors may have merely forgotten to settle their debt, resulting in a speedy resolution. At other times, additional persuasion and pressure might be necessary, extending the case duration. Nevertheless, we make every effort to expedite the process. Since our compensation is contingent on successful recovery, it’s in everyone’s interest to reclaim the entire claim as swiftly as possible.

What kind of documentation does Oddcoll require to initiate the debt collection process in the Philippines?

The main document we need is the unpaid invoice that was issued in the Philippines. If there are additional relevant documents, such as a signed contract or proof of delivery, you can also upload these. Should more documentation be needed at any stage, our debt collection specialist will request it. Furthermore, providing contact information for the debtor and a brief description of any past communications you’ve had with them can be beneficial. This data will assist us in engaging the debtor in the most effective manner.

Can Oddcoll assist with legal debt collection in the Philippines?

Absolutely, we can assist with all types of legal debt collection that may be needed during the process with your Filipino debtor. This includes court actions, enforcement, and insolvency proceedings.

Do you accept all types of claims?

No, we focus on B2B claims, specifically debt collection cases involving companies in the Philippines.

The Benefits of Using Oddcoll for Debt Collection in the Philippines

– Our team is well-versed in the nuances of Filipino business culture and regulations, offering a complete debt collection procedure.

– Through our online portal, you can access your case details around the clock, ensuring you stay informed on your debt collection case at all times.

What if I have numerous unpaid Filipino invoices to upload?

No worries at all. You can start your cases by:

Uploading them individually (which takes about a minute per case), using an Excel file, or by connecting your ERP system to our platform via API.

Does Oddcoll handle debt collection in countries other than the Philippines?

Yes, indeed. We are a global B2B debt collection service with local debt collection specialists located across the globe. You can rely on Oddcoll for all your international debt collection needs, ensuring a safe and efficient process.

Collected amount

What is Oddcoll?

We know how difficult it can be to get a customer abroad to pay. As a creditor in another country, you have no leverage.

We have solved this problem by creating an international debt collection platform with the best local debt collection agencies and law firms around the world.

This means that when you create a case with us, a local debt collection specialist will work on your case, no matter where in the world your debtor are located.

Through testing and careful screening, Oddcoll ensures that you have the best local debt collection specialist available everywhere!

An international debt collection Service that covers all the world.

Always local debt collection specialist with their boots on the ground where your debtors are located.

Always manage your cases quickly and easily on our web portal. 24/7.

More info about debt recovery in the Philippines.

Our local debt collection agency in the Philippines, which will immediately initiate collection actions on the spot:

We are pleased to announce Upper Class Collections as our debt collection partner in the Philippines. They will immediately start collection actions in the Philippines when you start a case.

The debt collection process in the Philippines.

he debt collection process in the Philippines starts when an invoice falls due to a Filipino debtor. The debt recovery attempts begin with reminders and persuasion. In some cases, legal debt collection may become necessary in the Philippines when a debtor resists payment.


Out-of-court debt collection in the Philippines.

When a debt collection agency handles the case, the aim is to get the debtor to pay without having to escalate it further to the courts in the Philippines.

This is done at the so-called extrajudicial collection stage in the Philippines.

In order for collection attempts to be effective at this stage, it is necessary to use a collection agency that is local to the Philippines where the debtor is domiciled. This is because at this stage it is made clear to a debtor that the case may be escalated to legal action if payment is not received. A debtor is then intimidated and wants to avoid the risk of paying additional high costs. But for this pressure to be effective, it needs to come from someone in the same country as the debtor. Then the debtor knows it is for real.

Persuasion at this stage of the debt collection process is done by letter, telephone call, electronically and sometimes physically. In addition to the above-mentioned threat of legal action by a local debt collection agency in the Philippines, other factors are also important for success at this stage. Such as negotiation skills, knowledge of the local customs, etc.


Judicial debt collection in the Philippines.

The legal system.

The Philippine legal system is a mix of different legal systems such as common law, Roman civil law and Anglo-American common law. Civil law applies to areas such as family relations, property, inheritance, contracts and criminal law. Laws and principles of common law origin are instead evident in areas such as procedural law, company law, taxation, insurance, industrial relations, banking and foreign exchange. In some southern parts of the islands, Islamic law is applied. The Philippines’ mixed legal system is a result of the immigration of Muslim Malays in the fourteenth century and the subsequent colonisation of the islands by Spain and the United States.


The court structure.

The Philippines’ legal system consists of a hierarchy of courts with the Supreme Court as the highest court.

The Supreme Court has expansive powers, can overturn political and administrative decisions, and has the ability to make rules and laws without precedent. It also sets procedural rules for lower courts and its members sit on electoral tribunals. The Supreme Court exercises appellate jurisdiction over judgments of the Court of Appeals and the Court of Tax Appeals.

Under the Supreme Court there are three levels of courts:

– Court of Appeals (CA).
– Regional courts.
– Metropolitan and Municipal Trial Courts.

The Court of Appeals hears appeals from the regional courts. It is the second highest court, and decisions made by this court can only be appealed to the Supreme Court. And then only on questions of law that the Supreme Court wishes to address.

The regional courts are spread throughout the judicially divided regions of the Philippines. Some of these courts are specialised to handle certain types of cases. For certain types of cases, these courts have exclusive jurisdiction. This means that people go directly to this court to have their case heard.

Below the regional courts is the first level, which is the Metropolitan and Municipal Trial Courts. These are located in cities and towns throughout the country.

Alongside the regular court systems, special courts have been set up to deal with specific cases. E.g. the Court of Tax Appeals and the Sandiganbayan. In some parts of the country, Sharia courts have been established. In addition, the Philippines has a collegiate anti-fraud court called the Sandiganbayan.


So which court is appropriate to take your civil debt collection case to?

If you have a civil claim against a debtor in the Philippines… which court is the appropriate one to take your collection case to?

It depends a bit on the details of the case to determine the first instance of legal debt collection in the Philippines.

For those cases where a foreign company has a commercial claim against a debtor in the Philippines:

The regional court is the proper forum to start in:
– Where the subject of the dispute is not in a position to make a financial assessment.
– Where the total amount of the claim exceeds P200,000 or, if the case is being handled in the Metropolitan Region of Manila, where the claim exceeds P400,000.

Metropolitan and Municipal Trial Courts are the proper forum to start in then:
– When the total amount of the claim is less than 200,000 pesetas (400,000 pesetas in metropolitan Manila).

An appeal from the Metropolitan and Municipal Trial Courts is heard by the regional court as the next instance.


The court process.

A creditor brings a civil action by filing a writ of summons with the appropriate court and paying the court fees.

The court then issues a summons informing the defendant of the action brought against him or her. Where the defendant is a company, service may be made on the chairman, managing partner, chief executive, company secretary, treasurer or company lawyer.

The Philippine judiciary actively promotes amicable settlements to resolve civil disputes. Before going to court, civil cases are therefore referred to mediation, which is conducted by accredited mediators from the Philippine Mediation Centre.

If mediation fails, there is a second chance to reach an amicable settlement through judicial dispute resolution under the guidance of a judge. If mediation fails again and the trial continues until the civil case is fully resolved, a third attempt at mediation may be made at the next level if the case is appealed.


How are the costs of a trial divided between the parties?

The courts can decide that one party should pay the costs or that they should be shared. Costs are calculated according to the Supreme Court’s guidelines. Costs are generally awarded to the party who wins the case. However, the court may order either party to pay the costs or to share the costs, provided that the reasons given are valid and reasonable.


Enforcement of claims in the Philippines.

As a final step in the legal debt collection process in the Philippines, you may need to seek the assistance of the court to enforce your claim.

In short, this means that you have gone through the legal process in the Philippines and have a judgment or similar enforcement document that proves that the debtor owes you money. However, non-payment by the debtor continues even after the judgment has been rendered. You can then turn to the court in the Philippines for help in transferring the debt from the debtor to yourself.

Searching for a debt collection agency in Philippines?


1. Can a collection agency file a lawsuit in the philippines?

Yes, a collection agency can file a lawsuit in the Philippines if the debtor fails to pay the debt. However, before filing a lawsuit, the collection agency must follow certain procedures and requirements, such as sending demand letters to the debtor and attempting to negotiate a settlement. The lawsuit must also be filed in the appropriate court and the collection agency must provide evidence to support their claim. It is recommended that debtors seek legal advice if they are facing a lawsuit from a collection agency.


2. What is a third party collection agency?

A third-party collection agency in the Philippines is a company that specializes in collecting overdue debts on behalf of creditors. These agencies are not part of the original creditor, but rather are hired to collect the debt on their behalf. Third-party collection agencies are usually used by creditors when their own internal collection efforts have been unsuccessful. The collection agency contacts the debtor and attempts to negotiate a payment plan or settlement in order to recover the debt. The agency may also use legal means to collect the debt if necessary, such as filing a lawsuit. Third-party collection agencies in the Philippines are regulated by the government and must adhere to specific rules and regulations when collecting debts.

3. Which is the philippine law about unpaid debt?

The Philippine law governing unpaid debt is the Civil Code of the Philippines, specifically Title XV, Chapter 3, which deals with obligations and contracts. The law provides that a debtor is obligated to pay their debt in full, and failure to do so gives the creditor the right to recover the debt through legal means, such as filing a lawsuit.

Under the Civil Code, the creditor has the right to demand payment from the debtor, and if the debtor fails to pay, the creditor may seek the assistance of the courts in recovering the debt. The law also provides that the debtor is liable for damages and interest on the unpaid debt.

In addition to the Civil Code, there are other laws in the Philippines that regulate debt collection practices, such as the Fair Debt Collection Practices Act (Republic Act No. 10870) and the Credit Information System Act (Republic Act No. 9510). These laws provide guidelines and restrictions on debt collection practices and protect debtors from harassment and abuse by debt collectors.

4. Can you go to jail for not paying debt in Philippines?

In the Philippines, a person cannot be sent to jail for failing to pay a debt. The law provides that failure to pay a debt is a civil matter, not a criminal offense. This means that if a debtor is unable to pay their debt, the creditor may file a lawsuit to recover the debt, but the debtor cannot be imprisoned for this reason.

However, there are some exceptions to this rule. For example, a person may be arrested for a debt if the debt is related to taxes, customs duties, or other similar obligations to the government. In addition, if a debtor is found guilty of fraud or deceit in relation to the debt, they may be criminally charged and could face imprisonment.

It is important to note that while a person cannot be imprisoned for a debt, failure to pay a debt can still have serious consequences, such as damage to credit scores and legal action taken by the creditor to recover the debt.

Start to collect your invoices today!


Oddcoll is a service for international debt collection.
We make it easy for companies to get paid from their customers abroad.

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