Use a debt collection agency - how to get ready as a creditor
Every year, thousands of Danish companies experience one or more unpaid invoices. Fortunately, most companies make an active effort to collect the unpaid invoices - and often with success, for example through reminder letters, demand letters, debt collection no tices or just a simple friendly reminder by letter or phone
Unfortunately, there are still creditors who choose to write off their claims, often because they consider it a waste of effort to pursue them. This is a mistake, and it is often because the creditor is not ready for debt collection and does not know how effective a modern debt collection company can be.
Debt collection? What do I use it for?
The term debt collection refers to the process you as a creditor, your debt collection agency or your lawyer undertake to recover one or more debts, typically unpaid invoices.
There is basically no difference between what actions you as a creditor, your debt collection company or your lawyer can take, as long as they are within the provisions of the Interest Act and the Debt Collection Act.
Debt collection involves the entire process of debt recovery, from the first reminder letter, debt collection notice / demand letter, possible reminder by telephone, ongoing dialog, installment arrangement, interest accrual, imposition of collection fees and reminder fees and possibly processing in the enforcement court by so-called judicial debt collection.
What can a debt collection agency do for you?
Basically, a debt collection agency can do exactly the same things you can do yourself - but often much more efficiently and with much more savings.
By letting a debt collection company or a lawyer handle your debt collection, you also avoid the work, time and hassle associated with debt collection and debt recovery.
In addition, it also often turns out that the debtor has far more respect when a debt collection company approaches than when the creditor himself approaches.
Using a professional debt collection company also ensures that all formal requirements, deadlines and correct imposition of interest, fees and reminder fees are met.
What are the requirements for you as a creditor?
In Denmark, fortunately, there are relatively few demands on the creditor when it comes to debt collection.
If you want to carry out your debt collection process yourself, using so-called self-collection, you must comply with the time limits and monetary limits for interest and reminder fees set out in the Interest Act and the Debt Collection Act.
If, on the other hand, you choose to let a debt collection company or your debt collection lawyer - then it is often very simple and cheap.
Collectia is among the debt collection companies in Denmark that have made it extra easy to create a case for debt collection. You can upload the unpaid invoice(s) online and directly from our website - we take care of the rest.
In other words, there is no requirement for you to contact the debtor yourself, send reminders, send collection notices or anything else. You can get started on your unpaid invoice - we take care of the rest.
In other words, the only requirement for you as a creditor is that you have an unpaid invoice (where the due date has passed) - and that the invoice is not more than 3 years old. As it is then legally obsolete according to Danish law.
Collectia - the debt collection company of the future
Collectia has been helping large and small companies with their debt collection since 1998 - in most of the Nordic region.
Collectia is among Denmark's most modern debt collection companies when it comes to utilizing the latest technologies. Collectia is among Denmark's only debt collection companies where you as a creditor can be in action, online and whenever you have time. You simply upload your unpaid invoice on our free online system - and then you can follow all relevant actions that happen on your case.
