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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:
Spain 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.
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 languages
The laws
Are in the same time zones
Herewith details of our debt collection service Spain:
Location of debt recovery office in Spain?
Madrid. All debt collection letters are sent by the local head office.
Number of debt collection staff?
7 members ( 5 paralegal 2 lawyers). 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 Spain?
We have been operating a European debt collection service on a no win no fee basis in Spain since 2001. Spain 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 Spain?
Depends of the kind of debt but commercial debt is 5 years.
Spain 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 Spain is 5 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:
Spain Open Account Years – 5 years
Spain Promissory Notes – 3 years
Spain Written Contracts – 5 years
Spain Oral Agreements – 5 years
How EU (European Union) laws effect debt collection in Spain?
Really it does not have effect because although European laws are applicable directly most of debtor just pay principal amount and does not pay interest and cost unless there is judgment.
Spain has been a European Union (EU) member country since 1986, Euro area member since 1999 and Schengen area member since 1995.
How many companies registries in Spain for businesses (i.e. UK has just 1 central registry)?
There is 1 company registry in Spain which is called Spanish Mercantile Registry - Registradores Mercantiles de España located at Diego de León, 21. 28006 Madrid, Spain.
We have access to Spain Company Registry searches to find out who further background information on all Spain companies.
What is the debt collection process in Spain?
When we receive a new collection order, we acknowledge receipt of the file to our Partner and then entered into our system. We send a collection demand letter to debtor´s address and an email ( if available) at the same time. In this Payment Order we encourage debtor to pay in 5 days to avoid legal action and provide the banking details of our law firm ( or the one of the client if they prefer so) After two days we start with the phone calls.
Once we contact the person in charge of accountancy we require to pay as soon as possible. If debtor cannot afford the payment at once we propone a payment plan however we do not accept any payment plan if we do not have the confirmation of the client through the partner.
During this period we report the client once every two weeks approximately but we always adapt to client´s requirements.
If we do not obtain the payment and the amount is high enough we consider legal actions but previously we check debtor situation ( if located and working). If the company is closed or is not active we recommend the closure of the file.
If we obtain a payment plan we sign a document between debtor and us ( or the client) because this document would always help us to show evidence of the debt in case they do not fulfill and we will have to fill a lawsuit.
We are lawyers so in case debtor accepts to fill a lawsuit we start legal actions but always we try an amicably settlement.
We send several letters if this is the only way to contact debtor ( no telephone) and also several emails. We always phone several times a week at different hours to obtain a response of payment from the person liable of the debt.
Average length of time to collect a debt?
The average time taken to recover a Spain B2B debt collection case varies from case to case. Depends on the proceeding and the Court. Around one year in case of opposition then there is a preliminary hearing and hearing till judgment).
Can late payment fees / interest to be added to claims?
Yes interest according our commercial ruling about default in payments (very high since invoice is due) Procurator and lawyer costs.
Details on legal service / process in Spain?
Spain has a Civil Law system in which the rules are essentially codified and supported by case law evolutions. The judiciary divides into various court levels including Municipal Courts (Juzgados de Paz) dealing with small claims, District Courts (Juzgados de Primera Instancia), Commercial Courts (Juzgados de lo Mercantil) in place in the main cities, Administrative Courts (Juzgados de lo Contencioso-administrativo), Appeal Courts spread at the provincial level (Audiencias Provinciales) and a Supreme Court (Tribunales Superiores de Justicia) acting as the court of final jurisdiction.
CIVIL PROCEDURE ACT: COURT PROCEEDINGS
A) Declaratory Proceedings
Ordinary Proceedings (over 500,000 Pesetas and unliquidated amounts)
Juicio Verbal
B) Special Proceedings
Claims for amounts due or Juicio Monitorio
Proceedings on Negotiable Instruments
In the case of Ordinary Proceedings the lawyers acting for the parties must attend two court hearings ( preliminary hearing and hearing).
The preliminary hearing is described by the LCP as the pre-trial hearing. Matters that can be dealt with at this preliminary hearing, at which all the parties should be represented, include reaching agreements or settlements, remedying defects of procedure, specifying the questions in dispute and questions of admission of evidence to be decided then and there by the Judge.
Further, at this preliminary hearing, if no additional proof of evidence is required, the Judge may proceed to order judgement. In any other case the Court will set down the day and time for the trial.
The object of the trial is to hear the evidence that has been judged admissible and the summing-up of the advocates based on the evidence and the legal arguments. After that the Judge issue the judgment. This judgement is not definitive and can be appeal.
The 'Juicio verbal' is a similar although oral procedure which can be initiated for claims below EUR 6,000. This proceeding has been modified last October 2015
B) Special Proceedings
The 'juicio monitorio' procedure, in addition, only requires common commercial documentation. If the buyer recognizes the debt (or fails to appear within twenty days from the claim notification), the process becomes an attachment proceeding against the debtor goods. If the buyer doesn’t recognize the debt, however, the process becomes in an ordinary process.
This special procedure (known as the "proceso monitorio") started in Spain in 2000 with the LCP. This is designed to take the form of quick proceedings leading to summary judgement and
use these proceedings provided the debt is pecuniary, due, payable Proceedings are commenced by lodging with the court a simple application accompanied by simple documentary evidence of the debt (i.e. invoice, CMR, delivery note etc.,). Once the application and the accompanying document(s) have been accepted by the Judge, he or she will order the debtor to make payment. If the debtor fails to pay and does not oppose the application, the Judge will immediately order execution. On the other hand if the defendant lodges a defence the proceedings will then change into an Ordinary or Oral Proceedings depending on the amount of the claim.
The Monitorio was originally created for claims up to EUR 250,000 but this threshold has now been deleted. In any case, the procedure must be transformed into a normal lawsuit if the debtor fails to pay or brings a defence. When the debtor company has assets in other EU Member States, a European Payment Order procedure facilitating the recovery of undisputed debts (under Regulation EC No 1896/2006) may furthermore be triggered. In this case, the demanding party may request a domestic court to issue an Order to Pay which will then be enforceable in all European Union countries (except Denmark) without exequatur proceedings.
Proceedings on Negotiable Instruments If the debt is certain and undisputed, fast-track proceedings may help solving the issue with limited courts. The 'Juicio cambiario' procedure aims at obtaining a Payment Order for the recovery of debts documented by a promissory note, cheque or bill of exchange. The process is very short (eight months to a year) and starts with an attachment proceeding against the debtor goods.
Arts 819 to 827 of the LCP provide for a legal process that, without either being ordinary or executory, offers the plaintiff certain judicial protection from allegations relating to the fundamental cause of the dispute. In effect the articles of the Law of Negotiable Instruments and Cheques that refer to summary proceedings have been amended and from now on the recovery of amounts owed on cheques, promissory notes or bills of exchange (provided that they comply with the requirements of the Law of Negotiable Instruments and Cheques) shall be by way of the Court Proceedings on Negotiable Instruments as established by the LCP.
Proceedings shall commence with the lodging of a statement of claim with the negotiable instrument annexed. The plaintiff must demonstrate that he is the legal holder of the negotiable instrument and expressly declare what he proposes (i.e. that court should require the defendant to pay, order that his assets be provisionally attached and issue the order for execution). Then the Judge, once he has accepted the legal validity of the plaintiff’s title to the negotiable instrument, will simultaneously order the defendant to pay and the provisional attachment of sufficient of the defendant’s assets to secure recovery without the need of a guarantee.
The defendant’s statement of defence can be only based on:
1. Failure to comply with the formalities established by the Law of Negotiable Instruments and Cheques.
2. Defects in the holder’s title (e.g. problems with the endorsement or possession).
3. Invalidity of its representation as a valid negotiable instrument (falsification of the signature, lack of authority of the person signing), and
4. Cancellation of the debt owed on the negotiable instrument (prior payment).
Afterwards a copy of the defendant’s statement of defence will be supplied to the plaintiff following which a date and time will be set down for the court hearing to which the rules governing Oral Proceedings shall apply as provided by Art. 443 of the LCP.
INSOLVENCY PROCEEDINGS
The insolvency procedure is subject to a liquidity test (insolvencia actual) aiming at establishing whether the debtor is permanently unable to settle its due debts. The Spanish Insolvency Act (as amended by Law 38/2011 of October 2011 and some other amendments) provides for insolvency proceedings (concurso). These proceedings s normally commence upon notification of financial difficulties to the court by either the debtor or its creditors, and include a common phase in which the judge will appoint, as a general rule, one or more Receivers (depending on the firm's turnover) in charge of managing the business and of determining the debtor’s estate / outstanding debts. The bankruptcy can lead to a creditors agreement or to the liquidation of the company.
Spain Business Credit Reports
Creditreform provides over 88 million international business credit reports throughout Europe and 200 million international business credit reports worldwide. Total businesses registered in Spain is over 3 million. Through our online databases you can download Spain business credit reports instantly. This 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.
Spain Skip Tracing Agents
Creditreform’s debt collection company service also uses expert local Spain 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 Spain 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 collectors 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.
European Payment Order in Spain
There is an Order for Payment Procedure in Spain. It applies to pecuniary debts that are genuine, due and payable for a specified claimed amount. Since 31 October 2011 there has been no limit on the amount to be claimed. The debt must meet various criteria before proceeding.
Once the plaintiff has made an application the debtor has a period of 20 days from the date of the demand for payment to lodge an objection. The objection must be made in writing. It is not possible to make it orally in court. If the amount of the claim is more than €2 000 the objection must be signed by a lawyer and a court representative. There are no specific grounds for appeal, and the debtor may assert both substantive and purely formal or procedural grounds.
What language should the application be made in Spain?
All actions, in general, must be made in the Spanish language. Legal actions should be made in writing in the language of the country where the debtor is located. There are some actions which can be made orally but it would still have to be spoken in Spanish. In those Autonomous Communities that have their own language (Catalonia, Valencia, the Balearic Islands, Galicia and the Basque Country), that language may also be used.
What Courts are used in Spain?
Article 117 of the Spanish Constitution of 1978 states that the principle of the unity of the judicial power is the basis for the organisation and operation of the courts. There are numerous courts in Spain and the following four court systems:
Civil courts (also known as ordinary courts), Criminal courts, Courts for contentious administrative proceedings and Social courts.
In addition to these four court systems, there are also military courts in Spain.
In accordance with the explanatory memorandum to Organic Law 6/1985 of 1 July 1985 on the Judiciary, the State is divided territorially, for judicial purposes, into municipalities, districts (partidos), provinces and autonomous communities.
The exercise of judicial power is attributed to the following courts: magistrates courts (Juzgados de Paz), courts of first instance and preliminary investigations (Juzgados de Primera Instancia e Instrucción), commercial courts (Juzgados de lo Mercantil), courts for dealing with violence against women (Juzgados de Violencia sobre la Mujer), criminal courts (Juzgados de lo Penal), courts for contentious administrative proceedings (Juzgados de lo Contencioso-Administrativo), social courts (Juzgados de lo Social), juvenile courts (Juzgados de Menores), courts with special duties in the matter of criminal sentences (Juzgados de Vigilancia Penitenciaria), provincial courts (Audiencias Provinciales), high courts of justice in the autonomous communities (Tribunales Superiores de Justicia), the National High Court (Audiencia Nacional) and the Supreme Court (Tribunal Supremo).
The National High Court, the Supreme Court, the central criminal courts (Juzgados Centrales de Instrucción) and the central courts for contentious administrative proceedings (Juzgados Centrales de lo Contencioso‑administrativo) have nationwide jurisdiction.
Mediation (Alternative Dispute Resolution - ADR) in Spain
Law 5/2012 of 6 July 2012 on mediation in civil and commercial matters transposes Directive 2008/52/EC of the European Parliament and of the Council of 21 May 2008 into Spanish law. This Law establishes a minimum framework for the practice of mediation without affecting the provisions adopted by the Autonomous Communities.
Law 5/2012 on mediation in civil and commercial matters includes the possibility of informing the parties at the preliminary hearing that they have the option of using mediation to try to resolve the dispute and, taking into account the purpose of the court proceedings, the court may invite the parties to attempt to reach an agreement that would end the proceedings or allow the parties to request a stay so that they can undertake mediation or arbitration.
As claims and disputes brought to the courts are ever increasing there are longer waiting periods to reach a resolution. Also legal costs have increased and can become disproportionate to the value of the claim.
As a result of the above Mediation has become faster and cheaper than ordinary court proceedings. This is especially true in countries such as Spain where the court system has substantial backlogs and the average court proceeding takes can take many months and years to resolve.
More and more plaintiffs are reverting to the Mediation and even some courts are urging this process to be taken initially to reduce the pressures on the court system.
The General Council of the Judiciary (Consejo General del Poder Judicial) supports and supervises mediation initiatives in the various courts in Spain, supported by the Autonomous Communities, universities, local authorities or associations.
Can Statutory Interest Rate be added in Spain?
Statutory interest is provided for in Spain as a subsidiary remedy to set compensation for damages in the absence of an agreement between the parties, if the debtor is in default. It is provided for in Article 1108 of the Civil Code (Código Civil), which requires the unpaid debt to be in cash or to have been converted into cash.
There are different types of statutory interest. The most common rate is that referred to in the Civil Code.
Article 7 of Law 3/2004 on combating late payment in commercial transactions (lucha contra la morosidad en las operaciones mercantiles) establishes the statutory rate of late-payment interest that the debtor is obliged to pay as the sum of the interest rate applied by the European Central Bank to its most recent principal refinancing operation carried out before the first day of the current half of the calendar year, plus eight percentage points.
Spain Debt Collection Partners in the following Spanish Countries:
What is the legal system in Spain?
The Spain legal system is Influenced by the Napoleonic Code, it also has some elements of Spain's legal tradition, starting with the Siete Partidas, major legislative achievement from the Middle Ages. That body of law remained more or less unchanged until the 19th century when the first civil codes were drafted, merging both the Napoleonic style with the Castilian traditions.
What is the name of the Government Gazette in Spain?
The Gazettes in Spain are as follows:
Boletín Oficial del Estado Official Bulletin of the State Electronic publication
Boletín Oficial de la Junta de Andalucía Official Bulletin of the Government of Andalusia
Boletín Oficial de Aragón Official Bulletin of Aragon
Boletín Oficial del Principado de Asturias Official Bulletin of the Principality of Asturias
Butlletí Oficial de les Illes Balears Official Bulletin of the Balearic Islands
Euskal Herriko Agintaritzaren Aldizkaria Official Bulletin of the Basque Country
Boletín Oficial de Canarias Official Bulletin of the Canary Islands
Boletín Oficial de Cantabria Official Bulletin of Cantabria
Diario Oficial de Castilla–La Mancha Official Daily of Castilla–La Mancha
Boletín Oficial de Castilla y León Official Bulletin of Castile and León
Diari Oficial de la Generalitat de Catalunya Official Daily of the Government of Catalonia
Diario Oficial de Extremadura Official Daily of Extremadura
Diario Oficial de Galicia Official Daily of Galicia
Boletín Oficial de la Rioja Official Bulletin of La Rioja
Boletín Oficial de la Comunidad de Madrid Official Bulletin of the Community of Madrid
Boletín Oficial de la Región de Murcia Official Bulletin of the Region of Murcia
Nafarroako Aldizkari Ofiziala Official Bulletin of Navarre
Diari Oficial de la Comunitat Valenciana Official Daily of the Valencian Community
Boletín Oficial de la Ciudad Autónoma de Ceuta Official Bulletin of the Autonomous City of Ceuta
Boletín Oficial de la Ciudad Autónoma de Melilla Official Bulletin of the Autonomous City of Melilla
Which countries border Spain?
Who are the main trading partners for Spain?
The top trading partners for Spain are France (16%), Germany (10%), Italy (8.5%), Portugal (8%), United Kingdom (6%) USA (4.5%), Belgium (4.5%) and Netherlands (3.5%).
What is the Supreme Court in Spain?
The Constitutional Court (Tribunal Constitucional) was established in 1978 and is located in Madrid.
Spain Debt Collection Agency FAQs
1. How does a Debt collection agency in Spain 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 Spain 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 Spain 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 Spain?
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 Spain 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 Spain?
The reasons for using a local Spain debt collection agency than processing from a different country is the debt collector in Spain 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 Spain debt collection?
We will assess all debt cases, irrelevant of age and size and then advise the best processes to recover these through the Spain debt collector.
7. How do I instruct the debt collectors in Spain?
Instructing the debt collectors Spain 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 Spain debt collector?
When instructing the debt collector in Spain 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 Spain 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 Spain?
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 Spain 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.