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Eos KSI: We send 160,000 letters to debtors every month

Eos KSI: We send 160,000 letters to debtors every month
03.11.2009, 23:20 11

Debt collectors are struggling to cope with the volume ofrequests from banks, which have risen by 50%.
"The volume of requests coming from banks is 50% higher than lastyear. Banks obviously need more personnel in their own debtrecovery departments, and at the same time need to outsource thisactivity as much as possible, because they are not coping anymore.We ourselves are making efforts to preserve our success rate(actual debt collected out of the overall debt due to becollected). More phone calls, more SMSes, more letters," says GeorgKovacs, managing director of Eos KSI, no. 1 on the debt recoverymarket, according to data from the Ministry of Finance. Thecompany's client portfolio includes eight top -ten banks.
The head of Eos KSi says the company sends 160,000 letters a monthwhereby it informs debtors on their overdue debt or threatens legalaction.
EOS KSI has 30,000 cases where legal action was brought againstdebtors and 8,000 instances of forced execution. The forcedexecution procedure for an individual normally takes between 6 and12 months, and real estate property can be seized even for runningbehind on consumer loans or for unpaid telephone bills. "We aremore interested in cash payments, so we prefer to draw 30% of thedebtor's monthly income until the debt is paid."
The success rate for recovering debt on loans up to 90 days overduehas remained around 70-80%, according to the head of Eos KSI.
However, in the case of loans that are over 90 days overdue, thesuccess rate has dropped significantly this year, from 30 to20%.
Kovacs says the time of late payment between the 90 days and themoment when the forced execution procedure starts (which can varygreatly from one bank to another, between 95 and 300 days) is a"dead area".
"It is very difficult to recover the debt during this period. Youeither collect the debt before the 90 days, or when the forcedexecution procedures start, as the debtors gets scared and doeverything they can to pay."

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