Consequences in the event of non-compliance with the obligations

A credit management company or a bailiff would perform debt collection until the liabilities are recovered in full. The failure to meet any loan liabilities, whether a mortgage or consumer loan, or an unpaid invoice for services, bears equally grave consequences:


1. a bad credit rating, after which the debtor/guarantor will find it difficult or impossible to receive loans as the information on outstanding liabilities may be included in the Risk.lv database of credit history, maintained by the credit management company LLC “PAUS KONSULTS” and the Credit Register of the Bank of Latvia according to the rules of the Credit Register and the Credit Information Office, in accordance with the applicable laws and regulations;

2. the debtor/guarantor is liable with all his/her property;

3. the debtor/guarantor will be liable to compensate the creditor's losses;

4. any debts may be ceded (sold) without the debtor's/guarantor's consent and thus it will be required to agree on the debt repayment with another physical or legal person;

5. if a debt is not paid voluntarily, the creditor will file a claim to the court and the debtor/guarantor will be liable to cover the cost of litigation on top of their debt;

6. after receipt of executive documents the bailiff would start coercive execution directed at:

a. all debtor's/guarantor's property (movable and immovable property, including property located with other persons or property to be obtained later). In the event the loan is secured, the pledged property (real estate, vehicle etc.) will be sold in an auction. Should the amount recovered through an auction be insufficient to cover all liabilities, the debtor/guarantor will be liable to cover the outstanding part of the debt;

b. the debtor's/guarantor's remuneration or similar payments by binding the debtor's employer to withhold cash every month to cover the debt;

c. other debtor's/guarantor's income and deposits with credit institutions;

7. the debtor's/guarantor's bank accounts will be blocked;

8. all expenses connected with the carrying out of the judgement (bailiff's activities) are covered by the debtor/guarantor;

9. the amount of the debt will be paid in instalments until the liabilities are settled in full as indicated in the court ruling.

Payment orders, confirmations

Payment order, Confirmations

 

  • Data Processing Manager - LLC “PAUS KONSULTS”, Reg. No. 40003352670, Blaumana Street 38/40, Riga, LV-1011
  • Purpose of data processing - Providing the services of LLC “PAUS KONSULTS” according to the applicable laws and regulations

 

Procedures for the adoption and review of Complaints

The procedure for receiving and examining consumer complaints is developed in accordance with the requirements of the Law on the Protection of Consumer Rights, the Law on Out-of-Court Recovery of Debts, the Law on the Processing of Personal Data and other regulatory acts.

The purpose of this document is to describe the procedure in which the Consumer or the Consumer's authorized representative can submit a Complaint, what information must be provided in the Complaint, what documents must be attached to the Complaint, the procedure in which the Complaint is considered, as well as the manner in which the response to the Complaint is provided.


Terms used:

Debt - payment obligations that have not been fulfilled in a legal transaction or within the term specified in a legal act;

Debtor - a natural person who in a legal transaction or in a legal act, has not fulfilled payment obligations within the time limit or in accordance with the procedure established by a legal transaction or which is determined by legal acts, and who operates outside the scope of his economic or professional activity;

Consumer - a natural person who expresses a desire to purchase, purchases or could purchase or use a product or service for a purpose that is not related to his economic or professional activity;

Complaint - a written appeal by the consumer to LLC “PAUS KONSULTS” regarding a violation of the consumer's rights, including related to the debt recovery process, a claim about the existence of the debt or its amount;

Complainant - a person who prepared, signed or submitted a complaint, incl. Debtor, Consumer, lawyer, authorized legal or natural person.

PĀAL – Extrajudicial Debt Recovery Act.


Complaint submission procedure, content and documents to be attached to the complaint.

1.1. LLC “PAUS KONSULTS”  accepts written complaints.

1.2. A written complaint can be submitted:

1.2.1. By personally arriving and submitting a complaint at the office of LLC “PAUS KONSULTS” , located at Blaumaтa street 38/40, 2nd floor, Riga;

1.2.2. By sending a complaint to the e-mail address paus@paus.lv;

1.2.3. By sending the complaint by registered mail to LLC “PAUS KONSULTS”  at the address Blaumana street 38/40, Riga, LV-1011.

1.2.4. By submitting a complaint to the "Portal for Communication" - https://auth.paus.lv/login

1.3. If the preparer or submitter of the complaint is not the Consumer/Debtor himself, but his authorized representative, a document certifying authorization (notarized power of attorney, sworn attorney's warrant) must be attached to the complaint.

1.4. In order to shorten the deadline for preparing/providing a response as much as possible, it is recommended to include the following information in the complaint:

1.4.1. Name, surname, personal identification number, address (declared, actual address or e-mail address) of the consumer/debtor, preferably also a telephone number;

1.4.2. The date and place of the complaint;

1.4.3. Subject matter, essence, circumstances, claim of the complaint;

1.4.4. The way in which the Consumer/Debtor wants to receive an answer to the complaint.

1.4.4.1. If the Consumer/Debtor has indicated in the complaint that he wants the answer to be given to the authorized representative, a document certifying the authorization must be attached to the complaint and the manner in which the answer should be given to the authorized representative must be specified.

1.4.5. For the complaint submitted in accordance with 1.2.1 of this procedure. and 1.2.3. point, must be signed.

1.5. To the complaint, in order to shorten the deadline for preparing/providing the answer as much as possible, it is desirable to attach copies of the documents to which the complainant refers in the complaint and which substantiate/confirm what is mentioned in the complaint.


Handling and responding to consumer complaints

2.1. The complaint submitted by the consumer is registered in the processing system.

2.1.1. If the complaint is sent by post, it is considered to have been received on the seventh day after it was sent to the post, even if the addressee actually received it earlier.

2.2. No later than the next business day from the moment of receipt of the complaint and registration of the complaint in the processing system, the complaint is transferred to the responsible employee for preparation of a response.

2.3. LLC “PAUS KONSULTS” provides the answer to the complaint in compliance with 1.4.4. specified in point.

2.4. In case the complaint does not include information in accordance with 1.4.4. LLC “PAUS KONSULTS” chooses the way to provide an answer at its own discretion, taking into account the contact information about the complainant at the disposal of LLC “PAUS KONSULTS”  incl. information that became known to LLC “PAUS KONSULTS”  or was used during previous cooperation for communication with the complainant.

2.5. In the event that the Consumer/Debtor is not satisfied with the response provided by LLC “PAUS KONSULTS”  to the complaint, according to the norms of the "Consumer Rights Protection Law", the Consumer/Debtor has the right to file a complaint with the Consumer Rights Protection Center.

2.7. Information that reveals the identity of the complainant shall not be disclosed without the consent of the complainant, except in cases where LLC “PAUS KONSULTS”  must disclose this information in accordance with regulatory enactments.


Leaving complaints unaddressed

3.1. LLC “PAUS KONSULTS”  is entitled to leave the complaint without consideration in the following cases:

3.1.1. The complaint does not specify the Consumer/Debtor's name, surname, address (declared, actual address or e-mail address), or personal identification code, if it is necessary to identify a specific person;

3.1.2. The complaint is not signed, except for 1.2.2. the case referred to in paragraph;

3.1.3. The content of the complaint is blatantly offensive and defiant;

3.1.4. What is indicated in the complaint is not related to the commercial activity of LLC “PAUS KONSULTS”  or its consideration is not within the competence of LLC “PAUS KONSULTS”;

3.1.5. The text of the complaint is objectively not legible or understandable;

3.1.6. The answer to the complaint has been given previously and its content with respect to the legal or factual circumstances indicated in the previous complaint has not changed in essence;

3.1.7. The complaint was signed/submitted by a person who is not the Consumer/Debtor himself, and no documents certifying authorization have been submitted to LLC “PAUS KONSULTS” ;

3.2. If the complaint is left without consideration according to 3.1.3. or 3.1.6. point, the complainant is not given an answer.

3.3. If the complaint is left without consideration according to 3.1.1., 3.1.2., 3.1.5., 3.1.7. point, LLC “PAUS KONSULTS”  shall at its own discretion, inform the complainant of the identified deficiencies by providing information by telephone, by contacting the phone number specified in the complaint, or by sending information to the electronic mail address specified in the complaint.

3.3.1. If the complainant has not indicated his phone number or e-mail address in the complaint, LLC “PAUS KONSULTS”  is entitled to use the telephone number and e-mail address that has become known to it or was used during previous cooperation for communication with the complainant;

3.3.2. In the event that LLC “PAUS KONSULTS”  does not have the complainant's phone number or e-mail address, information about the deficiencies identified in the complaint is sent to the complainant's residential address or the declared address, if such information is available to LLC “PAUS KONSULTS”  or is possible to find out.

3.4. If after informing the complainant about the deficiencies identified in the complaint they are not eliminated, the response to the complainant will not be provided.

3.5. If the complaint is left without consideration according to 3.1.4. point, LLC “PAUS KONSULTS”  shall at its discretion inform the complainant about the reasons for leaving the complaint unexamined, by providing information by telephone, by contacting the phone number specified in the complaint, or by sending information to the electronic mail address specified in the complaint.

3.5.1. If the complainant has not indicated his phone number or e-mail address in the complaint, LLC “PAUS KONSULTS”  is entitled to use the phone number and e-mail address that has become known to it or was used for communication during previous cooperation.

3.5.2. In the event that LLC “PAUS KONSULTS”  does not have the complainant's phone number or email address, the information is sent to the complainant's residential address or the declared address, if LLC “PAUS KONSULTS”  has such information or it can be ascertained.


These rules have been updated and came into effect on April 16, 2025.

Frequently asked questions

  • Why the request for debt repayment was received from LLC “PAUS KONSULTS”?

    LLC “PAUS KONSULTS”  is a licenced debt recovery service provider which has the right to perform activities necessary for the debt recovery (both extrajudicial and judicial) as well as to act on behalf of the creditor requesting the debt repayment from the debtor pursuant to the task assigned by a creditor as well as on the basis of the cooperation agreement concluded and power of attorney issued. 

    Debt recovery from debtors – natural persons is performed in line with the requirements laid down in the Law on Extrajudicial Recovery of Debts and in order regulatory enactments but debt recovery from debtors – legal persons is performed in accordance with general procedures – pursuant to the requirements laid down in the Civil Law and other applicable regulatory provisions.

    Apart from that, LLC “PAUS KONSULTS” has the right to request the right of claim of the debt if the creditor has assigned (transferred) to Paus Konsults the right of claim in accordance with the provisions of the Civil Law in the result of which as from the moment of cession LLC “PAUS KONSULTS” can act with the rights of the creditor and on this basis they perform activities with the claim, including but not limited to requesting the debt repayment submitting claim in the court regarding debt recovery and etc.

  • What to do if I have received a notice and/or text message from LLC “PAUS KONSULTS”?

    In case you have received our notice or text message regarding the debt repayment please immediately contact LLC “PAUS KONSULTS” to find a solution together and agree on the debt repayment as well as to avoid from the consequences of the default on debt repayment. 

    In accordance with the provisions of the Law on Extrajudicial Recovery of Debts you have a duty to cooperate with the creditor and debt recovery service provider.

    What are the consequences of the default on debt repayment? If the debt is not paid in due time, information about your debt can be included in the database of debt history which might restrict your possibilities to receive various services in the future, for example, telecommunication or crediting services. Apart from that, the sum of the debt might increase in accordance with the provisions of the agreement concluded between you and the creditor and the applicable regulatory enactments. The creditor can also use the right to apply to a court by bringing an action against you for the debt recovery.

    Due to this reason, in order to prevent the situation when such consequences come into effect you are invited to contact your debt recovery specialist or call to the central telephone number 67281771 or write to email address paus@paus.lv in order to agree on the order of voluntary debt repayment as well as to ask any other questions regarding your debt repayment which you might be interested in.

    If you hold the view that the debt is not grounded, you have the right to express supported objections against the existence of the debt within 21 days’ time as from the moment of receiving the first notice from Paus Konsults as well as to enclose documents proving it (for example, to send a payment order).

  • Is it possible to pay the debt in parts?

    If it is not possible for you to pay the debt in accordance with the determined order or within the time limits, upon contacting LLC “PAUS KONSULTS” debt recovery specialist and explaining justified reasons why immediate fulfilment of payment liabilities is not possible, we can agree on monthly payments for covering the debt.

    However, please take into account that the repayment of the debt in parts might increase the sum of the debt in accordance with the provisions of the agreement concluded between you and the creditor (increase of interest and contractual penalty), and it might also increase the debt administration expenses. Due to this reason, it is recommended to make the debt repayment in possibly shortest period of time.

  • How can I make the debt repayment?

    You can fulfil the debt liabilities by making a transfer to the requisites indicated in the notice sent by LLC “PAUS KONSULTS” or you can also contact Paus Konsults to find out information about exact requisites of the account for the debt repayment. Before making the payment, please contact LLC “PAUS KONSULTS” to find out information about exact balance of the debt. 

    The debt repayment can be made to LLC “PAUS KONSULTS” bank account No. LV79HABA0551012385495 at JSC Swedbank, while the payment of debt collection expenses must be made to bank account No. LV12HABA0551012384179, AS Swedbank. It is recommended to use JSC Swedbank defined payment for more convenient debt repayment. It will permit you to make payment to LLC “PAUS KONSULTS” bank account without any errors.

    In addition to the aforementioned, please indicate the number of your encashment case in the aim of the payment so that we could direct you payment for covering the specific debt faster and more precisely.

  • What are the debt recovery expenses and why they are to be covered by me?

    On the basis of the Law on Extrajudicial Recovery of Debts, it is a duty of the debtor to reimburse the debt recovery expenses and it is not the duty of the creditor or the debt recovery service provider. Having regard to the aforementioned, it is recommended not only to cover the debt liabilities against the creditor in due time but also to compensate for the debt recovery expenses.

    In accordance with Section 1652 Clause 3 of the Civil Law, the debtor shall be in default per se with all its consequences when the debtor has allowed the time period set either by law or contract, or also by custom for performance to elapse. In case you have not made in due time the fulfilment of debt liabilities against the creditor and the case is handed over to the debt recovery service provider to perform debt recovery activities, you will additionally have to cover the debt recovery expenses.

    The debt recovery expenses are expenses that occur to the debt recovery service provider when performing the activities for debt recovery. The expenses of debt recovery are formed by the processing of the data received a cooperation partner, checks of contact information, expenses of the administration of encashment case, sending of notices and reminders, communication by phone and in writing, stationary expenses as well as any other activities that are performed to recover the sums of money due to the creditor.

    On the basis of Cabinet Regulation No. 61 adopted on 29 January 2013 “Regulations Regarding the Permissible Amount of Expenses for Recovery of a Debt and the Non-reimbursable Expenses” (effective as from 01.02.2013.), the amount of debt recovery expenses must not exceed EUR 17.00. Default on payment of the debt recovery expenses shall cause the same consequences as default on payment liabilities against the creditor in due time.

    P.S. The requirements laid down in the Law on Extrajudicial Recovery of Debts and Cabinet Regulations Regarding the Permissible Amount of Expenses for Recovery of a Debt and the Non-reimbursable Expenses are attributable on debtors – natural persons whose encashment cases have been initiated after 01.02.2013.

    With regard to debtors – natural persons whose encashment cases have been initiated before 01.02.2013 and debtors – legal persons, the provisions of the Civil Law regarding the compensation for loss that has occurred in debt recovery process or recovery expenses. See explanation about expenses – loss of debt recovery.

  • What is loss that has occurred during the process of debt recovery?

    With regard to debtors – natural persons whose encashment cases have been initiated before 01.02.2013 and debtors – legal persons, the provisions of the Civil Law regarding the compensation for loss that has occurred in debt recovery process or recovery expenses.


    Section 1662 of the Civil Law envisages that default shall place a duty upon the debtor to compensate for all losses to the creditor in full. Apart from that, Section 1779 of the Civil Law envisages that everyone has a duty to compensate for losses they have caused through their acts or failure to act. It can be concluded from Section 1770 of the Civil Law that a loss shall be understood to mean any deprivation which can be assessed financially. In accordance with commentaries to the aforementioned section, the notion “loss” includes also additional expenses including expenses that were necessary for the recovery of loss. In the specific case, the right of the creditor to receive the payment in due time were infringed. In the result of the aforementioned, it was necessary to perform additional activities for the recovery of the debt. It is a duty of the debtor to compensate for debt recovery expenses in full; besides, the debt recovery expenses are payable for all activities actually performed for debt recovery. 

    The recovery expenses include the processing of the data of the cooperation partner received, the analysis, checks and specifying of contact information, the preparation of correspondence, the storage of information in the archive of the service provider, stationary expenses, the administration of debt proceedings, communication (telephone calls, text messages), and other expenses.

  • What is RISK.LV debt history database?

    The purpose of debt history database is to provide information to a third person regarding the assessment of the ability of a natural or legal person to fulfil the payment liabilities. Information about the debt of a natural person is included in the debt history database not earlier than 30 days after sending the first notice if the debt, including the debt recovery expenses, have not been paid in full or also if within 21 days’ time there have not been objections expressed regarding the existence of debt liabilities in accordance with the order prescribed by the Law on Extrajudicial Recovery of Debts.

    The debt history database is checked by bank and non-bank creditors as well as by telecommunication and other service providers. The record in the debt history database regarding your debt can have an adverse influence on you for receiving other services, for example, leasing, credit, loan, internet, telecommunication and power supply services and etc. After checking information in debt history database and finding information about delayed payment liabilities, any service provider has the right to refuse providing the service ordered by you. 

    Information about default payments of a natural person is stored in the debt history database for three years as from the data of the debt repayment or the date of cancellation of the fulfilment of liabilities. If the debt including debt recovery expenses has not been repaid, information about the debt is stored in debt history database till the date when the limitation period comes into effect unless it is not terminated in accordance with the procedures prescribed by the regulatory provisions.

    Due to this reason, it is recommended to make the regular payments in due time. But if any of the payments is delayed and a debt has occurred, please fulfil the delayed payment liabilities immediately in order to avoid from negative consequences.

  • Will the debt be recovered also in the cases when I am outside the territory of the Republic of Latvia?Will the debt be recovered also in the cases when I am outside the territory of the Republic of Latvia?

    The debt recovery can be also performed also outside the territory of Latvia. LLC “PAUS KONSULTS” cooperates with several foreign debt recovery companies. If you reside outside the territory of Latvia, LLC “PAUS KONSULTS” can transfer your debt recovery case to extrajudicial debt recovery service provider of another country including but not limited to Lithuania, Estonia, Great Britain and Germany, etc.

    The fact that you reside in another country is not an obstacle for bringing an action to court for the debt recovery in accordance with the procedures prescribed by the Civil Procedure Law and other binding regulatory provisions as well as to receive internationally recognised writ of execution and submitting it to a sworn bailiff of the respective country who enforces the debt recovery by making deductions from your salary and by imposing an attachment on your bank accounts and property.

  • What is the difference between extrajudicial debt recovery and debt recovery by using judicial proceedings?

    In case of extrajudicial debt recovery, you will have to make the payments envisaged in the agreement concluded between you and creditor (principal sum, interest for use and/or late payment, contractual penalty, etc.) as well as debt recovery expenses if such have occurred. Voluntary fulfilment of the debt liabilities during extrajudicial debt recovery is the most convenient and friendly way of debt recovery for you.

    If the debt recovery case is submitted to court, you will additionally have to cover the expenses for trial as well as professional remuneration of a sworn bailiff and the expenses related to the enforcement of a judgement which in total can reach or exceed the amount of the debt. If the case is submitted to a sworn bailiff, there can be deductions made from your salary, benefits and other income, an attachment can be imposed on your bank accounts, including, the restrictions for the use of Netbank, and it can lead to alienation and sale of movable or immovable property belonging to you.

  • What to do in case if in my opinion the total sum of the debt does not correspond to the sum requested by extrajudicial debt recovery service provider?

    In case you disagree with the amount of the debt indicated in the notice, please contact immediately LLC “PAUS KONSULTS” by phone or in writing and inform about the circumstances of the specific case and submit documents proving non-existence of debt liabilities, for example, payment orders regarding full or partly debt repayment or other documents. 

    After assessing the submitted documents and checking information with the creditor, we will inform you about further course of the debt recovery proceedings.

    Please take into account that you will have to cover the debt recovery expenses in cases when the repayment of the debt has been made after initiating the activities necessary for the debt recovery.

    Please contact your debt recovery specialist, call to the central telephone number +371 67281771, or write to email address paus@paus.lv. 

    Submitting of payment orders and confirmations

  • Does LLC “PAUS KONSULTS” have the right to process my personal data?

    Yes, in accordance with the applicable regulatory provisions  LLC “PAUS KONSULTS” has the right to process your personal data in order to fulfil the duties entrusted to use – to provide debt recovery service and to protect our and third persons’ legitimate interests. More detailed information about the processing of your personal data and the purposes of such processing can be found in section “Privacy policy”.

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