What is the debt exchange (debt exchange)?

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Debt exchanges, otherwise known as debt exchanges, is a fairly new solution that compiles a register of economic information regarding debts with the possibility of redemption.

Debt exchange system

Debt sale offers are made public in this register. It also serves the development of debt brokerage services. Thanks to this formula, the data included in the register is made available to a very wide group of people, as it happens mainly via the Internet, but also via mobile telephony.

Is there a single debt exchange operating in Poland?

Many entities dealing with the register of claims with the possibility of their resale have already been established in the domestic system. Therefore, it is not one domestic entity, but many different databases, usually internet ones, competing with each other.

When to use the debt exchange

In practice, the debt exchange is used by creditors who no longer want to struggle with debt recovery from a dishonest contractor and decide to sell the debt and real estate agents. Entrepreneurs who would like to obtain information about a potential client that will allow you to check its credibility may also be interested in the register, as well as entities that have knowledge and know the practice of debt repayment and thus can earn by buying a debt listed on the exchange.

Sell ​​your debt

Entrepreneurs often struggle with dishonest contractors who delay payments for deliveries or services provided to them. It often happens that the entrepreneur does not have time to persuade the debtor to pay by SMS or written requests for payment, not to mention wandering around the courts. Then, one of the methods available on the market to recover your money is the debt exchange.

This solution allows the creditor to sell the debt, which results in immediate recovery, usually a part, but sometimes even the entire amount with which the contractor is in arrears. On the other hand, another entity may purchase the debt put up for sale in order to, for example, continue to enforce repayment. The mere listing of the debt on the debt exchange is already a certain motivation for the debtor to pay it off. It appears in the register with the name and surname / name of the company, city and the value of the debt incurred.

Check the counterparty on the debt exchange

The register of unsettled economic claims can also be used in practice as an information base. Thanks to debtors' search engines available at the debt exchanges, entrepreneurs have the opportunity to verify information about their contractors or cooperating persons. The database can therefore be used not only for the sale or purchase of receivables, but also for preventive actions - checking the "honesty" of a potential contractor before signing
contracts, entering into cooperation.

Debtors register and personal data protection

A very important issue is the legal basis for announcing the debt on the debt exchange. First of all, issues related to the protection of personal data should be taken into account. However, it turns out that they are not problems. The provisions protecting personal data allow for the processing of (personal) data in situations where it is necessary to fulfill legally justified purposes of data controllers - i.e. the creditor's company. A legitimate aim is, in particular, pursuing claims for business activity. Therefore, the entrepreneur may disclose the debt along with the basic data of the debtor (name and surname / name, city) in accordance with the law and without the debtor's consent.

Benefits of the debt exchange

A debt exchange must bring benefits to all parties involved in it. For example, the benefit for a contractor who issues a debt may be faster recovery of the money owed to him by motivating the debtor.A contractor who sells the debt receives a payment, although usually less than the debt itself, but without the need to wait and incur expenses to claim the payment. The buyer, on the other hand, can gradually recover the entire debt, so as a consequence he will receive an amount of income higher than the cost he incurred to buy it.

Modern solutions in the form of a debt exchange are becoming an increasingly popular tool for collecting overdue debts. Therefore, it is worth considering and researching what forms of debt collection are allowed by the current legal system.