Phone collateral payment plans are getting very popular with collection companies. Maloni has a unique open API dashboard for easy connectivity with different collection systems. Simple say, when debtors are asking for payment plan collector is offering him to download app true which agency has full control over debtor device to lock it..
How to use phone collateral payment plans
Imagine, that you can lock the debtors’ phone anytime you like. It can be done fully automated, semiautomated, or manually. As the name suggests phone collateral payment plans mean you can have full control over customers’ phones fully remotely.
In the case of customers is not paying back, then from a legal view phone belongs to the agency. That means the agency can do anything that they like with the phone. In our case, we can lock the customer’s phone. Or we can send push notification. The most important function is that customers can call the agency, but they don’t have access to any other applications.
The legal view of phone collateral payment plans
According to § 2010 of the Civil Code, the following applies: “A debt can be secured if a third party commits to the creditor or in favor of the creditor for the debtor’s performance, or if someone gives the creditor or in favor of the creditor property security that the debtor will fulfill his debt. The debt may be established by arranging a contractual penalty or by recognizing the debt. “
It follows that security can be arranged either as a personal (typically a specific person is liable with all his property) or a factual (binding on things – in your case on a mobile phone), i.e. typically a lien or security transfer of rights.
Reference around the world
Firstly, phone collateral loan is the most popular in Africa continent. That’s why the biggest number of collection agencies using a phone collateral payment plan is coming from there.
Secondly, South America is the second biggest player concerning the numbers of companies who are using phone collateral.