Trying to Collect Debt in Belarus? Forget About It

Belarus, Bosnia-Herzegovina, Cuba and the Palestinian territories have been singled out as the worst places in the world to try to collect debts. Europe -- especially Scandinavia – North America and parts of Asia are the best places for debt collectors, according to a study by international collection consortium Total Credit Management Group International (TCM).

The study, which examined the collectability of debts in 155 countries, names 13 different countries where TCM considers the task of collecting debts to be “hopeless.” Marcel van den Noord, general manager of TCM Netherlands specifically called out four as being the most troublesome.

“International collection is one of the most difficult tasks within the collection branch. If companies want to do business with clients in countries such as Bosnia-Herzegovina, Belarus, Cuba and Palestine, I advise first checking their creditworthiness and also having them provide partial payment in advance,” said van den Noord.

The other countries on the “hopeless” list include Afghanistan, Burma, Iraq, Cambodia, Laos, Mongolia, North Korea, Nepal and Sudan.

The study, conducted in mid-2007, noted that outdated legislation, incomplete registration of personal data, poor postal service and wars are the primary drivers for poor collection performance.

On the positive side, the study singles out Sweden as being the most debt collection friendly country in the world. “In Sweden there is no ongoing discussion about privacy. Anyone, private individual or consumer, can pay to obtain information, such as the fiscal value of a home. Information about income or the presence of debt is easy to uncover,” said van den Noord.

TCM says that 39 of the 155 countries it examined were given a positive rating for debt collection. Most are in Western and Central Europe, but the list also included the United States, Canada, Australia, New Zealand, China, India and several South American countries.

The study was conducted by polling managers at each of the 155 offices of the TCM Group’s worldwide debt collection network. Countries were grouped into three categories: high probability of repayment, average probability, and countries in which defaulters do not pay. Thirteen were given the lowest score, while 39 received the highest. The remaining 103 countries were given an “average” ranking.

TCM Group International, with administrative offices in Belgium, provides global coverage and creates a one-stop solution for companies, organizations and individuals requiring global debt collection and recovery services, including litigation and court action through a network of collection agencies in 155 countries.