Cross River Forum

ALTERNATIVE DISPUTE RESOLUTION IN DEBT RECOVERY.
Oftentimes, the recovery of debt through the court is slow and pregnant with alot of uncertainties. SO, in other to avert the snail-pace and uncertainty in going to court , parties to a loan transaction sometimes provide an Arbitration Clause in their Loan Agreement which require them to first take any dispute arising or that has to do with any interest or rights of the parties to an Arbitration Panel, exhaustible before any court action on such dispute.

This method allows parties to settle their disputes and enforce their settlement without going to court.

RECOVERY OF DEBT BY ORDER OF COURT.

In order to promote peace and order in the society , the rule of law demands that all actions of individuals, organizations and government agencies must be justified by the rule of law and that nobody , however exalted in status or position , is entitled to disregard the law , for example , in the course of recovering a debt.

Thus, even if the borrower is unwilling to pay up , the lender is not permitted to resort to self-helf or the use of force to collect the money owed to him or repossess any security used to secure the loan without a legal action or court order.