As a sibling comment said, outstanding debt is sent to collections after a certain period, similar to how credit card debt (and all kinds of other debt) is handled in the U.S., and maybe in most parts of the world?
Can’t comment on implementation details since thankfully neither my contacts nor I have experience with collections. (Btw, once upon a time, my Experian credit score dropped by like 150 points after a mysterious debt appeared on my credit report; turns out someone else’s debt was mistakenly put on my file. Luckily my name wasn’t also “mistakenly” sent to some collections agency. Definitely scared the shit out of me.)
Can’t comment on implementation details since thankfully neither my contacts nor I have experience with collections. (Btw, once upon a time, my Experian credit score dropped by like 150 points after a mysterious debt appeared on my credit report; turns out someone else’s debt was mistakenly put on my file. Luckily my name wasn’t also “mistakenly” sent to some collections agency. Definitely scared the shit out of me.)