International debt collection laws

What laws and regulations apply to cross-border debt collection?

That is, when a creditor and a debtor are located in two different countries.

The quick answer is… There are no international debt collection laws.

So what rules apply to international debt collection?

Laws relating to debt collection are always regulated at national level.

So each country has its own set of rules on how debt collection must be conducted within their borders.

It is basically the same idea as with other procedural rules. For example, if you want to sue someone in court in a country. Then the procedural rules of that country apply.

So if you want to use debt collection to get paid by a Spanish debtor, then Spanish laws and rules apply. Even if the creditor is elsewhere.

Having said that, it is still worth mentioning the main features of countries’ rules on debt collection. As they share some common features. Common denominators are:

1, Permission is required from the authorities in the country where you are trying to collect a debt. This is to protect debtors from rogue debt collectors.

2, There are rules on how debtors are to be treated and how the collection process may proceed.

So to summarise the situation on international debt collection laws:

– There are none.

– National rules of the debtor’s country apply.

– Authorisation is required in the debtor’s country to collect money as a debt collector.

– There are national laws on how the debtor must be treated and what a debt collector can do.

Read more about how cross-border debt collection works.