The cost structure of consumer and corporate debt collection is prescribed clearly in the Debt Collection Act. In this article, we provide information about the composition of debt collection costs from the point of view of both the client and the consumer.
At CreditVisor, we want to reform the debt collection industry through our actions, and we believe that reasonable debt collection costs in the collection of receivables are also reflected as a positive customer experience towards our clients’ customers, the consumers.
Fees are only charged for a successful debt collection
Responsibility and transparency are the cornerstones of our operations as we provide credit management services to our clients. We consider the co-operation between the debt collection agency and the client to be a partnership.
The debt collection fees laid down by the Debt Collection Act must be taken into account in the pricing between the debt collection agency and the client. As a rule, we only charge our fee for a successful debt collection. In practice, our clients only incur costs for withdrawn assignments.
Our starting point and goal is to succeed in the smoothest and most understanding way from the end client’s point of view in voluntary debt collection. We provide assistance in preparing payment plans, while creating a positive and approachable image of debt collection.
Low debt collection costs for low principal amounts
The Debt Collection Act lays down the maximum amount of debt collection costs, depending on the principal amount. Here, the term maximum amount is noteworthy. In other words, the Debt Collection Act does not take a stand on what to do with regard to low amounts in particular. It may be a surprise to many that the debt collection costs for EUR 3 are a maximum of EUR 14.
In accordance with our company’s values, we collect consumer receivables at costs lower than laid down in the Debt Collection Act. You can see our price list in the attached table.
| Principal | Payment demand 1 | Payment demand 2 |
| max. €5 | €5 | €3 |
| max. €7 | €10 | €5 |
| max. €10 | €10 | €7 |
With regard to debt collection costs, the Debt Collection Act also states that “the debtor must compensate the creditor for reasonable expenses arising from a debt collection.” The Debt Collection Act does not specify the amount of reasonable debt collection expenses in the case of small principal amounts. This is our view, and, therefore, we do not charge debt collection expenses that are many times higher than the principal sum.
We are happy to provide additional information about a partnership with us and the expenses of debt collection. We will help in matters relating to your company’s receivables and credit management. You can contact our team easily by e-mail to [email protected] or you can also easily submit a contact request via the chat service.