We have learnt from firsthand experience that debt collection is more psychological than legal. The aim is to impose some “pressure” on the debtor in an intensive and concentrate way so that he will feel obliged to pay his debts. Therefore, three criteria for a successful debt collection comprising: promptness, stringency and persistence. This exact method is practised in our law firm. Debt collection is inserted in the new Malagasy Code for Civil Procedure [articles (242 to 251)] while French law makes provisions of different procedures for debt collection.
However, the lack of detailed legal framework in this field, gives MCI the freedom to choose arrangements to be made in order to achieve the goal: to collect debts.
The average collection rate is 65%, consequently, MCI is currently the leader in terms of debt collection in Madagascar.