How cultural differences can affect international debt collection

Providing a service or selling a good without receiving the due payment is quite stressful. The process of collecting this debt can be even more complicated if the debtor is not willing to pay it, ranging from pre-legal collections process to the enforcement process. Still, worse than the energy wasted during this situation, is the possibility of not even receiving the amount due. This scenario, which is already quite complex domestically, worsens when is about international debt collection, since it involves different laws, institutions, agents, besides the contact with a society
whose values and language may be very different from the creditor’s one.

In the Algerian Civil Code (1975), we have at least 15 articles talking about prescription periods, in which we see at least five expiring periods (e.g. 1, 2, 4, 5, 15 years). The jurisprudence on debt recovery process is rich and requires specialized knowledge, which can be used for the creditor’s sake. Furthermore, there is a variety of possibilities for mediation or extrajudicial conciliation, also requiring specialized knowledge in order to implement the best solution for both parties. All of these legal and business issues are part of our routine, which makes us able to help you!

The language issue

Regarding cultural differences with focus on the language issue, a large part of the Algerian population does not speak formal English or French; instead, they speak Arabic and some dialects in their routine. As a result, an international creditor fluent only in English which is officially the language of international transactions could find difficult to communicate with a regular Algerian debtor.

The meaning of owing a debt

In addition, the meaning of owing a debt varies in each culture; it can be associated with moral concerns, and it can also only be related to the debtor’s fear of not having access to the credit market if he doesn’t pay the debt. Therefore, identifying how the debt and its owner are seen in the debtor’s culture is very important during an international debt collection process.

But not only that: even how work and business are regarded in the debtor’s culture can interfere with the debtor’s willingness to pay – e.g., in cultures where manual or intellectual labor is not valued,the collection of an exorbitant debt resulted from the sum of itself with its interest can make the debtor refuse to pay it, because one may see it as an outrageous demand.

A local partner in Algeria

For these few reasons mentioned above, and which only mention a few cultural constraints and not the other major constraints of international debt collection linked to administrative and legal difficulties, it is imperative for a company which sells its goods or services internationally to use the services of a debt collection agency located in the country of the client to ensure the recovery of its debts in the most optimal and efficient way.
We are an amicable and legal debt collection agency based in Algeria, with 8 years of existence and thanks to our various partnerships with direct clients and as third party collectors we are exclusively specialized in international trade debt collection cases and become the essential covering Algeria. For all your questions and requests do not hesitate to contact us at contact@dzacs.com