One of the major differences in debt collection between Japan and overseas is the Collection Agency.
In a company that specializes in the collection of delayed loans and other receivables, the client pays a contingent fee according to the collected amount when collected.
It is said that there are over 30,000 debt collection agencies worldwide. Among them, 10,000 companies exist in the United States and the rest across the whole world. Collection agencies are found in BRICS, Asia, South America, Eastern Europe, Israel and South Africa while not in and around Middle-East and Africa.
As you know in Japan, there is a restriction by the Lawyer Act, and it is prohibited to do such work except for lawyers.
As an exception, there is a company called “Servicer”, but this can only handle loans from financial institutions, lease claims and instalment sales monetary claims. Accounts receivables are not included. Whereas, this is also a law unique to Japan and few countries have such restrictions overseas.
In Japan, when you hear debt collection agency you could think of a heavy-built man forcefully threatening to collect money by all means, however, although this may not be precisely, so everywhere but is quite common overseas.
