Does protesting a debt mean the same as blacklisting the debtor's name?

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A very common confusion among many people is between protesting a debt and blacklisting the debtor's name. Although they are almost always side by side, the two measures have different characteristics.

Negative reporting is the provision of information relating to consumers by companies to credit protection services, private institutions that organize this data and create lists containing payers with a bad reputation in the market.

This process is usually simpler, with the creditor simply reporting the situation czech republic phone number list the database containing such records. From there, the information can be accessed and taken into consideration by other companies, helping in the decision to grant credit.

The advantage of being a negative creditor is that it is more practical and involves less bureaucracy. On the other hand, a defaulting consumer's registration expires after 5 years, even if the debt is not paid. In other words, after this period, their name will no longer appear on the list of debtors.

A protest binds the debtor to that debt until it is paid off. Debt protests do not expire and can be filed for periods of up to 10 years. In any case, the protest will only be terminated when the debt is actually paid.

Although debt collection is important to reduce defaults in your business, it is quite difficult to make it work effectively in all cases. In this sense, debt protest is another resource that you can use when recovering credit. Also, do not disregard the possibility of hiring a specialized company to help you with debt collection, increasing the chances of success.