Share of cash payments reduced by almost 50% by debt repayments

Less than half percent of debts arrives in cash to receivables-management companies, while the share of post cheque payments decreased from 55% to 33% in 2018. The share of bank transfers increased to 66% – according to the research of EOS Group.

One of the leading receivables management group, EOS Group analyzed several hundred-thousand unsecured claims, which were managed in 2018 in Hungary. Results show that Budapest is the only city where cash payments pass 2% mark (2.8%), every other county is far below 1% in this payment method. The share of bank transfers increased from 42% to 66% last year, resulting in a decrease in post cheque payments (from 55% to 33%).

 

Regarding the prioritization of the different kind of debts, similar to last year, bank debts are the first, then telco debts and other public services get paid at last. “Smartphones and internet access have become so important and deeply embedded in the different segments of the society that in several cases these services are more important to debtors than basic public services. While in the past year, we mostly saw this phenomenon in the age group between 20-40 years, now it is clearly visible in almost every age groups” – says Tamás Kraszna, head of unsecured pre-legal collection department at EOS Faktor Zrt.

 

It is important to mention, that the later the repayment starts, the bigger the charges became. 

 

In case of a 100 000 HUF bank debt, which has a yearly default interest of 10%, the following approximate costs will appear after one year of latency:

 

+ 10 000,- default interest

+ 5 000,- the cost of the payment order

+ 5 000,- law cost of the payment order

+ 5 000,- the cost of the bailiff

+ 4 000,- law cost of the bailiff

+ 16 800,- bailiff commission

+ 8 500,- cost of on-site execution

Total: 154 300 HUF, which is 50% more than the original claim.

 

„It is our common interest to get the debts repaid as easy as possible – in an acceptable way for both parties. As we can say in the mentioned example, latency might be expensive, so we suggest to get in contact with the owner of the debt as soon as possible. A receivables management company has more flexibility in the field of making the payments possible – for example, has the opportunity to provide an installment based on the possibilities of the debtor” – emphasized Tamás Kraszna.

 

 

 

The EOS Group

The EOS Group is one of the leading international providers of customized financial services. Its main focus is on receivables management covering three key business segments: fiduciary collection, debt purchase and business process outsourcing. With around 7,000 employees and more than 51 subsidiaries, EOS offers some 20,000 clients in 21 countries around the world financial security with tailored services in the B2C and B2B segments. Being connected to an international network of partner companies, the EOS Group has access to resources in more than 180 countries. Its key target sectors are banking, utilities and telecommunications, along with the public sector, real estate, mail order and e-commerce. For more information please visit: www.eos-solutions.com.

 

 

Press contact

 

János Körömi – Clue PR – koromi.janos@cluepr.hu

 

 

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