Mediation is a new tool for extra-judicial credit recovery required by law that provides for a quick and informal agreement between the parties and has the equivalent value of a court decision. Gextra manages all stages of the mediation process on behalf of the client.
What is Mediation?
Introduced by Legislative Decree no. 28/2010, Mediation gives the parties (creditor and debtor) the opportunity to appear before an independent and impartial Ombudsman to present their case directly and quickly and easily reach an agreement that is legally binding for both.
Mediation makes it possible, therefore, to improve credit recovery performance greatly, quickly and definitively, resolving disputes without going to court and avoiding the time and cost of legal action.
The Gextra Mediation Service
Gextra has developed a full outsourcing service for the management of all stages of the mediation process on behalf of the customer, thanks to an agreement with Mediation Organizations accredited by the Ministry of Justice to act as impartial Ombudsman.
In particular, Gextra guarantees it will provide:
› direct management of Mediations throughout Italy
› completion of paperwork and contact with the Mediation Organization to initiate the summoning of the parties
› assistance and information on the benefits of mediation to the debtor summoned – through a leaflet attached to the summons itself – to motivate participation and promote the reaching of an agreement
› help in choosing, in agreement with the customer, the solutions to propose during mediation
› in general, management of the process using the same methods as other collection services, including sharing information about progress and reports with the parties involved
› the presence of an Ombudsman and a professional representing the interests of the customer, both skilled in matters related to the issue at the basis of the litigation.
Given that the seat of judgement is the once closest to the residence of the debtor, the intervention of the Gextra representative prevents the client from having to sustain travel costs for his own personnel.
Gextra is remunerated with the normal mediation allowances set by law, which is a commission on the actual amount recovered, and only in case of success.
- The advantages of mediation
Mediation can last a maximum of 3 months from the moment the application is submitted.
All procedural documents are exempt from stamp duty and registration fees. The mediation fees (established by law) are recognized as a tax credit, up to a value of 500 Euro.
The Mediators are accredited by the Ministry of Justice and are required to sign a declaration of absolute neutrality with respect to the subject matter of the dispute, the parties involved and their counsel.
The parties may present their arguments directly to the Ombudsman. The procedure can also be carried out via computer using video conferencing. The Ombudsman can authenticate signatures in different times and places. The conciliation reports contain binding clauses to ensure success of the transaction.
The Ombudsman is obliged to strict confidentiality regarding the information obtained during the procedure, which cannot be used as evidence in any subsequent court case in the event the mediation should be unsuccessful.
Nature of “enforcement”
If a party fails to comply with the agreements reached, the report prepared by the Ombudsman immediately takes on the value of an enforcement order for credit recovery, thereby avoiding the normal burden of judicial proceedings.
The non-participation of one of the parties summoned could be used as evidence against him in the event of subsequent litigation.
Re-negotiability of the dispute
In contrast to judicial proceedings, Mediation allows both parties to extend or restrict the scope of the dispute, in the event any new factors should present themselves.
Resumption of the relationship between the parties
Mediation aims to find solutions that satisfy both parties, specifically favouring the recovery and strengthening of a positive relationship between creditor and debtor.
- The mediation process