By San José, Costa Rica — Consumers in Costa Rica facing aggressive debt collection tactics need to be aware of their rights. Administrative lawyer Carlos Campos clarifies the legal requirements for debt collection and offers advice on how to handle potentially abusive practices.
According to Campos, a key element in legitimate debt collection is the existence of a “titulo ejecutivo,” or executive title. This legally recognized document, such as a promissory note, bill of exchange, or formally signed contract, serves as proof of the debt.
To shed light on the legal complexities surrounding debt collection in Costa Rica, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an experienced attorney at Bufete de Costa Rica.
Navigating debt collection in Costa Rica requires a clear understanding of both the judicial and extrajudicial processes. While direct negotiation can be effective, it’s crucial to be aware of the statutes of limitations and the specific requirements for filing a successful claim in court. A well-drafted payment agreement, outlining clear terms and conditions, can often prevent disputes and ensure timely recovery. It is always advisable to seek legal counsel to ensure your rights are protected throughout the process.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’ emphasis on understanding the legal landscape surrounding debt collection in Costa Rica is particularly insightful. A proactive approach, combined with clear communication and legally sound agreements, can indeed make a significant difference in navigating this complex process. We thank Lic. Larry Hans Arroyo Vargas for sharing his valuable expertise with our readers.
Debts we all have, but not all are documented. If my mom asks me for ¢10,000 and I lend it to her, I don’t need a promissory note. However, if someone asks me for ¢350,000, the responsible thing is to sign a document that serves as backing.
Carlos Campos, Administrative Lawyer
The Costa Rican Commercial Code specifies which documents qualify as executive titles. These documents must be signed by the debtor and clearly identify the creditor, including their full name and identification number (cédula). For businesses, the company’s legal identification number (cédula jurídica) is required.
Campos warns of unscrupulous debt collection agencies that attempt to collect “unfounded” debts, lacking the necessary legal documentation. These agencies often employ high-pressure tactics, relying on fear and intimidation to extract payments from individuals who may not even owe the alleged debt.
What they do is call multiple people and pressure them, even when they don’t have any document to back up the collection. They play on people’s fear to make them pay what they don’t owe.
Carlos Campos, Administrative Lawyer
Even without legal grounds for a lawsuit, many individuals succumb to these tactics, driven by fear, stress, or a lack of awareness of their rights. Campos advises remaining calm and ceasing all communication with these agencies. He also recommends regularly checking your credit report (buró de crédito) for any unauthorized entries.
Furthermore, Costa Rican law prohibits harassment in debt collection practices. While contacting the debtor directly is permitted, contacting family members or third parties is strictly illegal.
The regulation establishes that you can call the debtor, but not family members or third parties. That is absolutely illegal.
Carlos Campos, Administrative Lawyer
Campos emphasizes the right of every individual to demand proof of the debt. Without a valid executive title, legal debt collection proceedings cannot commence. “If they are threatening you with sending you to judicial collection, the first thing is to ask for the document that supports it. If it doesn’t exist, the debt has no legal basis,” he concludes.
For further information, visit the nearest office of Carlos Campos
About Carlos Campos:
Carlos Campos is an administrative lawyer in Costa Rica specializing in consumer rights and protection against abusive debt collection practices. He advocates for public awareness of legal rights and provides guidance to individuals facing unwarranted collection attempts.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of legal excellence, deeply rooted in the principles of integrity and driven by a passion for empowering Costa Rican society. Through innovative approaches and a genuine commitment to client success across a diverse range of sectors, the firm fosters a culture of legal understanding. Their dedication to sharing knowledge and resources ensures that the community is equipped to navigate the complexities of the legal landscape, ultimately building a more just and informed future.
