The process of collecting debt from individuals in Saudi Arabia differs from that of collecting debt from businesses in some aspects, but they share basic principles such as communication, follow-up, and legal action when necessary. Here are the main steps of the process of collecting debt from individuals in Saudi Arabia:

1. Pre-Due Date:

* Communication and Reminders:** Before the payment due date, it is a good idea to contact the debtor to remind them of the next payment date and the amount due. This can be done via phone, text message, or email.
* Building a Good Relationship (if applicable):** If you have an ongoing relationship with the debtor, maintaining good communication can facilitate the collection process.
* Documenting the Agreement:** Ensure there is a clear, written agreement specifying the terms of the debt, the loan amount, the repayment schedule, and any guarantees or warranties.

2. Post-Due Date:

* Initial Friendly Contact: After the due date has passed, contact the debtor to inquire about the reason for the delay and try to understand their financial situation. Flexible repayment options may be offered if the delay is due to unforeseen circumstances.
* Sending formal reminder letters: In the event of non-response or non-compliance with the agreement, formal reminder letters are sent by registered mail with acknowledgment of receipt, specifying the amount due, the original due date, and requesting immediate repayment. These letters should be clear and professional.
* Telephone follow-up:** Making repeated telephone calls to follow up with the debtor and attempt to reach a solution. Communication should be polite but assertive in asserting rights.

3. Negotiation and Settlement Phase:

* Attempting to negotiate: It may be beneficial to attempt to negotiate with the debtor to reach an amicable solution, such as rescheduling the debt, offering an affordable repayment plan, or a partial settlement of the amount due, especially if the individual is facing real financial difficulties.
* Documenting settlement agreements: If a settlement agreement is reached, it must be clearly documented in writing and specify the new repayment terms, deadlines, and penalties for non-compliance.

4. Legal Notice Stage:

* Sending a Legal Notice: If all amicable and negotiating attempts fail, a formal legal notice is sent through an attorney. The notice typically includes details of the debt and demands repayment within a specified deadline, with the threat of legal action in the event of non-compliance.
* **Explaining the Legal Consequences:** The legal notice must outline the potential consequences of non-payment, such as filing a lawsuit, legal fees and expenses for the debtor, and the possibility of enforcement action against their property.

5. Legal Proceedings Stage:

* Filing a Lawsuit: If the debtor does not respond to the legal notice, a lawsuit is filed before the competent court to claim the outstanding debt. The competent court depends on the nature and amount of the debt.
* Submitting Supporting Documents: All supporting documents must be submitted, such as contracts, bounced checks (if applicable), receipts, reminder letters, and the legal notice.
* Following the Court Proceedings: This stage includes attending court hearings, submitting memoranda, and pleading before the court.
* Obtaining a court judgment: If the right is proven, the court issues a judgment in favor of the creditor, obligating the debtor to repay the debt.

6. Judicial Enforcement Stage:

* Filing an enforcement request: After obtaining a final court judgment, a request is submitted to the enforcement court to enforce the judgment and recover the debt.
* Enforcement Procedures: The enforcement court takes the necessary measures to compel the debtor to repay, which may include:
* Seizing Bank Accounts: Seizing the debtor’s bank balances.
* Seizing Salaries: Deducting a portion of the debtor’s salary to repay the debt in accordance with the law.
* Seizing Property: Seizing real estate, vehicles, or any other property owned by the debtor.
* Selling Seized Property: In the event of non-payment, the seized property is sold at public auction, and the debt is settled from the proceeds.
* Travel Ban: The debtor may be banned from traveling in some cases, at the court’s discretion.

The mechanism for collecting debts from individuals begins with amicable attempts and gradually escalates to include legal warnings and judicial and enforcement proceedings.