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How to Instruct Us
We simply require the following details:
Full name & address of the debtor
All available contact details of the debtor i.e. contact name(s) / Tel / Mobile / Email(s)
Amount owed (Invoice(s) or Statement will help)
Or ask us to call you – just leave us your details:
Armenia Debt Collection – No Win No Fee
Creditreform operates a global specialist International debt collections service. We have local offices and fully approved expert international debt collection agency partners in every country worldwide. All our International debt collection agency partners and offices operate on a No Win No Fee basis charging an agreed commission against monies recovered only. All our international offices and partners initiate the collection processes by sending the debtors a debt collection letter to introduce their involvement.
Armenia has a population of over 2.9 million whose ethnic groups are Armenian 98.1%, Yezidi 1.1%, other 0.8%. Armenia is a EEU (Eurasian Economic Union) and CIS (Commonwealth of Independent States) member state but is seeking more EU and US trade.
The Real Gross Domestic Product (GDP) for Armenia in 2023 is estimated at $57.7 billion (compared to $53.1 billion in 2022). The GDP per capita rose from $19,100 in 2022 to $20,800 in 2023. The main export commodities are copper ore, gold, diamonds, tobacco and iron alloys.
Main reasons why a local country debt recovery agency is so important rather than trying to recover from a debt collection agency UK are as follows:
The local International Debt collection Partners know:
The local cultures
The best methods of initiating debt recovery letters and processes
The languages
The laws
Are in the same time zones
Herewith details of our debt collection service Armenia:
Location of debt recovery office in Armenia?
Yerevan. All debt collection letters are sent by the local head office.
Number of debt collection staff?
10. Each staff member is allocated a client and all their debt collection letters are personalised in order to effect the best response result s from debtors.
How long have you been operating a debt recovery service in Armenia?
We have been operating an Asia debt collection service on a no win no fee basis in Armenia since 2009. Armenia is included on our debt collection agency list.
What type of debt collection services do you provide? Do you do commercial debt recovery (B2B) and consumer debt recovery (B2C)?
We handle both Business to Business debt recovery cases and Business to Consumer debt collections cases. There is different content for business to business debt collection letter templates and business to consumer debt collection letters templates.
Statue of Limitation in Armenia?
3 Years from the day due
The period of limitation for the bringing of certain kinds of legal action to the Court is 3 years in Armenia, since the time debt became due and payable by the Debtor. If a Creditor will miss this period, a Debtor may ask to the Court to implement the statute of limitations and the debt will be acknowledged void by the Court.
Armenia civil litigation statute of limitations is a law that time limits a plaintiff’s right to bring a claim against a defendant. The statute of limitations in Armenia is 3 years. However, if an action has been taken within this time then the statute of limitations time will be extended to account for this. Once the specified time period elapses then no action can be taken through the legal processes unless the plaintiff is able to prove exceptional circumstances. Other Statute of Limitations include:
Armenia Open Account Years – 3 years
Armenia Promissory Notes – 3 years
Armenia Written Contracts – 3 years
Armenia Oral Agreements – Not applicable in Armenia
How EU (European Union) laws effect debt collection in Armenia?
EU laws will not have any impact in Armenia.
There is currently no Free Trade Agreement that has been signed or any ongoing negotiations between Armenia and European Union.
How many companies registries in Armenia for businesses?
There is 1 company registry in Armenia which is called State Register Agency of Legal Entities of Armenia / Electronic Register Government of Armenia located at Komitas Ave. 49/3, 9th floor, 0051 Yerevan, Armenia. The registry is available in Armenian, English and Russian language.
We have access to Armenia Company Registry searches to find out further background information on all Armenia companies.
What is the debt collection process in Armenia?
We need documents in originals to be signed by the debtor / email scans may also work for some cases/ and also for each case we will need POA directly from the client, we can also have POA from the 3rd party if they have POA which entitles them to re-authorize.
Average length of time to collect a debt?
Out of court collection from 10-40 days
Court case process is 2-3 years average
The average time taken to recover a Armenia B2B debt collection case varies from case to case.
Can late payment fees / interest to be added to claims?
Yes, interest can be added for Armenia debt collection cases according to local law.
The Central bank interest rate for Armenia is 0.25% (as per date of last change on 30 July 2024).
Details on legal service / process in Armenia?
1. To start a debt collection process we will need power of attorney (POA)
Why we need this and what kind of POA will work for the process?
We need this POA provided by the creditor to one of our employees /who will be directly engaged in the collection process / Or if a partner who is referring a client to us /let’s say the Agent/ has a POA from the creditor with the right to re-authorize to the third parties, then the Agent can Also provide us POA. In this case we would also require seeing the original POA provided to the Agent, to state the right of re-authorization.
Why we are asking for this
Per the code of Advocate's ethics of RA, the attorney shall have a POA to act on behalf of a client, it’s an obligation. While it’s not very often for the debtors to take much attention to this, if they will file a complaint to Chamber of Advocates, then the Attorney will be will be prosecuted by the Chamber.
We understand that this is not the case in most of the countries but those are the regulations acting in Armenia and if the Creditor wants start collection process we must obey the law.
We would need POA for each client. No matters the number of cases, i.e 1 POA for multiple cases.
2. Successful collection requires proper documentation of the debt
Again we would hereby like to speak about another specific aspect for the debt collection in Armenia which distinguishes Armenia from other countries.
It is very important to have documents confirming the debt signed by the Debtor. As such it might serve as an agreement, contract, invoice etc..The key is a signature placed by the debtor on such document, thus it’s greatly minimizes the risk of the fact that the debtor might later return to us with an announcement that products has not been delivered or services were not provided. This becomes more important when we start a court collation, where we also would require documents in hard copies and apostilled according to The Hague Convention Abolishing the Requirement of Legalisation for Foreign Public Documents.
National Sources of Law in Armenia
Insolvency & Commercial Laws in Armenia is regulated by:
Law on Bankruptcy (Law on Insolvency) adopted on December 25, 2006
Law on Bankruptcy of Banks and Credit Institutions (passed on 06.11.2001)
Civil Code enacted in May 5, 1998 (as last amended in 2010)
Civil Procedure Code (Adopted on June 17, 1998)
Date of entry into force of the New York Convention
The Convention on the Recognition and Enforcement of Foreign Arbitral Awards (aka New York Convention), was adopted by a United Nations diplomatic conference in 1958. The date of entry into force for Armenia was on 29 December 1997.
Armenia Business Credit Reports
Creditreform provides over 88 million international business credit reports throughout Europe and 200 million international business credit reports worldwide. We provide freshly investigated Armenia Credit Reports which can be done prior to trading to make sure the company you will be dealing with can meet the commitment or once the debt becomes overdue to ensure the debtor can meet the amount owed. Liability for business debts is determined by legal structures, which may be described as follows for Armenia:
Armenia Corporations:
Открытое акционерное общество (ОАО) – Armenia joint-stock company
Общество с ограниченной ответственностью (ООО) – Armenia private limited company
Armenia Partnerships:
Индивидуальный предприниматель (IP) – Armenia sole proprietor
Производственный кооператив (PK) – Armenia cooperative
Полное товарищество (PT) – Armenia general partnership
Крестьянское (фермерское) хозяйство (КFH) – Armenia farmer
Коммандитное товарищество (КТ) – Armenia limited partnership
Armenia Skip Tracing Agents
Creditreform’s debt collection company service also uses expert local Armenia tracing agent services to locate any absconded debtor. This debtor tracing service is provided on a No Find No Fee basis only charging for a successful trace.
Specialist Debt Recovery Experts
There are many unique requirements to recovering international debts in all countries including Armenia debt collection services which differ from the UK and therefore it is very important that cases are handled directly by our expert international debt collection agencies and not from debt collections UK. This method of international debt collection sets Creditreform aside from the competition who in many cases try and recover debts from a UK debt collector only. Using the local offices and partners enables us to achieve a far greater success rate and our No Win No Fee service together with competitive commission rates against monies recovered only ensures you get the best service.
Armenia Debt Collection Partners in the following Armenian Cities
What is the legal system in Armenia?
The legal system in Armenia is based on on Napoleonic Civil law and traditional Armenian law.
What is the name of the Government Gazette in Armenia?
The gazette in Arenia is called Hayastani Hanrapetutyun (Հայաստանի Հանրապետություն).
Who are the main trading partners for Armenia?
Which countries border Armenia?
Armenia is bordered by Georgia and Azerbaijan in the north/east, Iran and Turkey so the southeast & west.
What is the Supreme Court in Armenia?
The Supreme Courts for Armenia are called Constitutional Court of Armenia and Court of Cassation.
Armenia Payment Methods
The most common payment products in Armenia are Mastercard, Visa and Maestro.
Armenia Debt Collection Agency FAQs
1. How does a Debt collection agency in Armenia recover overdue debts?
The debt collection process is initiated by an introductory letter to your debtor stating the amount owed to you and informing them of our involvement. Letters are then followed up with emails and telephone calls. From our experience the most effective part of this process will be the outsourcing to a third party debt collection agency in Armenia as the debtor now has to resolve the debt and can no longer hide or provide lame excuses.
2. How long does the debt recovery agency in Armenia take to process a case?
The debt collection case will be processed immediately up receipt and a letter sent normally by email and post. You will receive an automated confirmation by return.
3. What is the success rate for debt collection agencies in Armenia?
The success rate of the debt recovery case depends on a number of factors including the solvency of the debtor and whether the case has a legitimate dispute. Our aim is to recover every debt that is recoverable.
4. Does the debt recovery agency in Armenia operate a No Win No Fee debt collection?
We take on all debt collection cases on No Win No Fee basis only charging the agreed commission against monies recovered.
5. Why use a local debt recovery agency in Armenia?
The reasons for using a local Armenia debt collection agency than processing from a different country is the debt collector in Armenia speaks the local language, knows the local laws and operates in the same time zones.
6. Are there any debts too old or too small for Armenia debt collection?
We will assess all debt cases, irrelevant of age and size and then advise the best processes to recover these through the Armenia debt collector.
7. How do I instruct the debt collectors in Armenia?
Instructing the debt collectors Armenia is a simple process. You just email details of the debt, debtor and amount to be recovered and the case can be initiated.
8. What evidence do I need to provide when instructing the Armenia debt collector?
When instructing the debt collector in Armenia just provide copies of invoices/statements, debtor contact details and any relevant information you may have to assist with the recovery process.
9. Who does the debtor pay?
In general the debt collector in Armenia will request payments to be sent directly to the client but if not possible for any reasons will take payment directly. If payment is taken then cleared funds will be processed and sent to client straight away.
10. Can I instruct multiple cases?
You can send unlimited debt case instructions. Our systems will automate volume cases to meet your requirements.
11. Can you trace debtors in Armenia?
Through our network of skip tracing agents we have an extremely high success rate of locating your absconded debtor.
12. How long does the debt collection process take?
On average the debt collections process takes 90 days to resolve an amicable debt recovery case. There are a number of factors that can delay this process but we will keep you informed every step of the way.
13. What are my options if debt collection in Armenia is not successful?
If the debt recovery service is not successful we will advise you of your options including legal actions. Please note no legal actions or other processes will be taken without prior instruction from you.