Many of the rules and regulations regarding are similar to the rules and regulations that exist in the United States. These laws are mostly designed to protect the debtor from unnecessary collection practices like harassment and threats towards debtors. The debt collection laws that exist in India encourage the debt collection agents to always treat the debtors with courtesy and respect.
One of the biggest differences between collecting debts domestically and collecting in India is that the laws in India forbid an Indian from collecting a third party debt from another Indian for a foreign debt. Any international debt collected in India must be paid directly to the original creditor.
Another specific debt collection law that exists in India is that a statute of limitations of three years is placed on any outstanding debt. This eliminates the possibility of collecting debts that are older than three years. The one exception is that any partial payment made to the creditor can extend the statue of limitations for another three years.
One of the most popular methods of business debt collection in India is filing a Winding Up Petition against the debtor company. This is basically asking a court to force the business to liquidate assets in order to repay an outstanding debt.
As you can see, debt collection in India requires the debt collector to follow a strict set of guidelines that is not too far from the laws that regulate debt collection in the United States. However, several key differences in both the actual laws and the culture of a different country can make the collection process much more difficult.
If you are attempting to collect an outstanding debt from an Indian debtor, your best bet is probably going to be to hire a that has experience dealing with international debt collection. Specifically, you will want to hire an agency that has experience dealing with collection in India. Using an experienced agency that knows the laws and culture of India will give you the highest probability to recoup the amount that you are owed.