Why the debt servicing costs are deducted from the repayments and why not taken from the borrower?

The collection fees that we or any other lender, agency, court, can charge a borrower are capped by law. Due to the abovementioned reason we are not able to collect the debt servicing costs in full from the borrower. We do charge the borrower in the amount that is legally permitted for the collection fees and therefore the deductions are correspondingly smaller. So the fees collected from the borrower reduce the write-off and increase your cash flow.

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