Glossary. 

A creditor transfers the rights relating to an outstanding receivable to another person. If, for example, a creditor assigns an outstanding receivable to EOS, EOS has the right to receive the outstanding payment from the customer. The payment to the old creditor does not discharge the customer of their debt if the customer has been notified about the assignment.

A legally effective assignment requires an agreement between the assignor (assigning party) and the assignee (the new creditor). The agreement of the customer is usually not required.

The seizure of assets or rights to satisfy a creditor’s monetary claims. This can include wages, bank accounts, receivables, and other tangible or intangible assets.

An enforcement procedure enacted by a court. The court confiscates property and transfers ownership to the creditor.

Bailiffs are persons who are primarily entrusted with enforcement actions for the purpose of settling outstanding debts. Their specific duties and authority vary from country to country.

A notices indicating that the payment is due. This is unnecessary if the due date is clearly laid down in the contract between the creditor and debtor, or if the debtor has accepted the terms and conditions. If the creditor is a bank, a repayment notice must be sent before collection measures are begun.

An order by one party to another to pay a certain amount to the signatory or a third party. An example of a bill of exchange is a cheque, in which an account holder orders their bank to pay the bearer a certain amount. (See also: aval.)

See "assignment"

The collection of financial claims on behalf of a creditor by a debt collection agency.

A creditor has one or more claims against a debtor or several debtors. If, for example, you ordered clothes from an online shop, then the company that operates that online shop is your creditor.

A company which specialises in collecting outstanding receivables on behalf of the creditor. The requirements which a DCA has to fulfil vary from country to country. As a reputable company, it is of great importance to EOS to comply with all applicable legislation and requirements.

A creditor sells a receivable, including all rights pertaining to such receivable, to a third party.

The customer and their creditor(s) agree on a plan according to which the customer pays the debt(s) in instalments.

This is the latest date on which a payment obligation must be honoured. If this date passes without payment, the relevant customer is in default.

Activities to force payment of the debt with the help of the justice system.

If a payment order is uncontested, a request for an enforcement order can be made. The court sends the payment order to the applicant ex officio, unless the creditor prefers to send the customer the enforcement order themselves. Based on an enforcement order, enforcement measures can be taken to collect the debt

The guarantor is treated like a co-customer, but not until the principal customer has failed to fulfil their payment obligations despite being requested and reminded as appropriate.

Occurs when a customer is unable to pay the amount(s) owed to one or more creditor(s).

An agreement between the creditor and the customer or between the customer and the debt collection agency to pay off an obligation in instalments over a period of time.

Non-performing loans are debts arising from a credit contract that have not been paid despite being due and payable.

Non-performing receivables are debts that have not been paid despite being due and payable. Non-performing receivables are often called non-performing loans (NPL) even if the underlying contract is not a loan agreement.

A term which may also be used instead of “debtor”. Obligor is often used in a wider sense to include, inter alia, guarantors.

See “instalment agreement”

The amount the customer owes to the creditor excluding any secondary claims. For example, an invoice you are obliged to pay in return for a service, such as telecommunication services or electricity or the loan amount which you borrowed and which you have to repay.

A legally existing claim against a customer following the supply of goods or services. This often takes the form of unpaid invoices or outstanding credit repayments.

List of individual elements of the entire amount due. For example, principal claim resulting from an invoice, accrued statutory interest for delays, or additional costs of enforcement proceedings.

Factoring without assumption of liability for non-payment of debts (i.e., without credit protection) is called ‘recourse factoring’. Non-recourse factoring, also known as ‘full-service factoring’ means the factor takes on the risk of non-repayment and manages all procedures relating to collection of the debts.

If the customer requires full credit protection while taking charge of the receivables management themselves, the term ‘bulk’ or ‘in-house’ factoring is used.

See “assignment”.

An agreement in which a dispute between two or more parties is resolved by means of a compromise. A settlement can be reached out-of court or during legal proceedings (judicial settlement).

A title is a judicial document with a writ of execution appended which states the duty to fulfil a particular obligation, e.g. to settle a due payment.

See "assignment".