Gulf's first online credit control agency to be launched

The first online credit control agency in the GCC will be launched here by Decol Debt Collections in December. Called Credit Net, it will be interactive and is designed to forewarn clients instantaneously about the creditworthiness of business partners before a contract is signed, partner John Ray said.

Bad cheques comprise one of the biggest problems plaguing UAE souqs (markets). A seminar held here this year noted that it is the biggest law enforcement problem: a whopping 60 per cent of police time is spent tackling this issue.

"Since there is no legal requirement for companies to give audited reports, the incidence of bounced cheques continues to rise, and with the entire system running on credit, one break in the chain has a ladder effect throughout the market," Ray said.

It is up to the private sector to protect its interests, and this is where Decol comes in.
"We were the first to offer commercial credit information to customers here and collect debts on their behalf seven years ago (and perhaps still are the only licensed and legally entitled entity offering such services)," he said. "And now we're launching our online interactive service."

This will enable customers to get instant access to Decol's extensive databank on debt checks and credit reports on questionable businesses. The clients will also be able to contribute to the database on chronic non-payers, after vetting by Decol. The service is priced at Dh500 per month for companies.

The UAE-based company has been offering debt collection and recovery services locally and internationally, having 105 offices in 77 countries. "We also offer commercial credit information, credit reports and debt checks in 153 countries," he said.

The global spread comes as a result of cooperation agreements with two leading debt recovery companies, Australia-based TCM Group International Ltd, and Minneapolis-headquartered American Collectors' Association Inc.

Decol claims a recovery success rate of 76 per cent in the local market. The debt recovery service is free of charge up to the point of collection, at which point the commission may range from 15-45 per cent depending on the time element and other factors, partner Calum McClure said.

Asked why clients would prefer to use Decol rather than the police - who would take action without charging commission - he said, "In many instances, the debtor would like to pay, but may be unable to do so immediately, entailing a phased repayment schedule. Hence both parties would rather sit with an independent third party to have their matter resolved."