Population: 10,364,388 (Approx - July 2005)

Economy Overview:

This modern private enterprise economy has capitalized on its central geographic location, highly developed transport network, and diversified industrial and commercial base. Industry is concentrated mainly in the populous Flemish area in the north. With few natural resources, Belgium must import substantial quantities of raw materials and export a large volume of manufactures, making its economy unusually dependent on the state of world markets. Roughly three-quarters of its trade is with other EU countries. Public debt is nearly 100% of GDP. On the positive side, the government has succeeded in balancing its budget, and income distribution is relatively equal. Belgium began circulating the euro currency in January 2002. Economic growth in 2001-03 dropped sharply because of the global economic slowdown, with moderate recovery in 2004.

General Business Practices.

a). Belgium has three (3) official languages, French, Dutch (actually Flemish which is to Dutch what American is to English) and German, depending on the geographical location in the country.
Business transactions are done in the language chosen freely by parties (the will of parties binds them, in any language). Courts will proceed in the language of their geographical jurisdictions, but will consider base documents in any language.
b). Belgian francs are used in Belgium. Business transactions can be made in any currency. Belgium is part of the EURO zone. BEF 40.3399 = EUR 1.00. As from 1/1/2001, EURO will definitely replace BEF.

Collections.

A. Background of Industry.

1. About 1 for every 2 invoices is NOT paid in full on the due date. Many cases are settled with reminders. One could estimate 5 to 15% as the share of invoices that reach a true collection stage.
2. Debt collection is handled by collection agencies, credit insurers, lawyers and bailiffs. Debt collection agencies are born and die every day. There are about 200 currently for a population of 10 million.
3. Collection work is done both on commercial and consumer accounts. Consumer rights are protected by specific laws.

B. Licensing Requirements.

No license is required to start a collection agency. However there is a Professional Association which is making steps towards such protection. The Professional Association has 19 members to date (incl. TCM Belgium). This association has agreed on a strict code of good conducts relating to debtors and to creditors.
Regarding consumer debts, a registration with the Ministry of Economic Affairs is required to collect installments debts (anything the consumer is allowed by the seller not to pay in one shot).

C. General Procedures.

1. Usually the Collection agency sends a registered letter to the debtor. This letter details the amount due, interest and charges, and requires full payment within short term (+-1 week).
Where there is a problem with the last known address inquiries are made to establish a correct address. Belgium has population registers and company registers which are quite well maintained.
If the debtor does not reply to this letter, a visit or phone call is made upon the debtor. This method is successful in more than 90% of cases where the debtor is solvent and the claim is valid.
2. A lawyer will usually send a letter, wait for a reaction, and start proceedings if there has been no reply and the client has authorized action to be commenced. Notwithstanding, the bulk of lawyers see their customers interest before theirs. A lawyer does not have the active approach. Lawyers generally wait for the debtor to move and then assign him to court quite quickly.

D. Charges & Remuneration.

1. Charges from a lawyer can not be contingent<