This document summarises the principles applicable to debt collection, which is integral to the Spuerkeess debt collection procedure, and describes the approach adopted by the Bank in this area. The recovery procedures aim to:
- not harm the dignity of customers and
- not impose disproportionate and undue coercive measures.
They are based on the fundamental principles of amicable settlement as well as fair and equal treatment.
More specifically, the principles are based on the 2030 Agenda for Sustainable Development and United Nations Sustainable Development Goals 8 (“Decent work and economic growth”) and 16 (“Peace, justice and effective institutions”).
The principles aim to remind clients of their responsibility to ensure that their commitments are met without neglecting the necessary sensitivity to clients’ needs while taking into account their individual circumstances.
The principles of debt collection generally apply to all customers of Spuerkeess, whether or not insolvency proceedings have been initiated. They apply to all types of debt for which a customer no longer meets its repayment obligation. The principles also apply to third parties (e.g. lawyers, court clerks, debt collection companies) who may be involved in the debt collection process. In these situations, Spuerkeess will exercise the available leverage to encourage their adherence to the principles set out in the recovery procedure.
During each debt recovery phase, specific controls and monitorings are in place to verify the status of the case and to set up or review the appropriate provisions.
The collection procedures of the Legal Affairs Business Unit, responsible for debt collection, are defined and reviewed regularly to adapt to any regulatory and case law developments.
The Legal Affairs Business Unit’s debt collection processes are based on:
- an internal structure with specific rules and responsibilities applicable to the different types of debt collection files;
- clear rules and principles to be followed during the various stages of debt collection;
- implementation of appropriate collection procedures for each type of debt;
- a control of the monitoring process to assess the progress of the collection procedure and determine if a new approach needs to be taken.
Internal rules for authorized signatures and manager approvals are in place for all actions undertaken.
A control is carried out for long-term defaults and cancellations.
Spuerkeess focuses on communication with the debtor and is willing to discuss, insofar as possible, the terms of payment given the customer’s repayment capacity. Payment rescheduling agreements are generally possible at any stage, before and after the initiation of forced debt collection.
If the procedures in question call for external assistance, Spuerkeess submits the case, where applicable, to trusted lawyers, mediators, court clerks, debt collection firms or notaries.
In the event individuals or companies, either in Luxembourg or abroad, become insolvent, Spuerkeess files the proof of claim with the competent authority and keeps track of the case. If necessary, Spuerkeess cooperates in insolvency proceedings (for example in over-indebtedness proceedings).
In such cases, Spuerkeess’ collection procedure may be extended to co-debtors and other guarantors.
An amicable settlement allowing a debt to be repaid within a reasonable period of time is possible at any stage of the collection procedure.
