Product Focus: Debt collection alerts

In this series, we focus on our products and the benefits they can bring to our clients' everyday lives. This week, we focus on the product "debt collectionalert", which helps companies to notify debt collection in the correct way - automatically and without the company having to take any action.

Depending on the industry, internal procedures, customer relationships and much more, the frequency with which companies face challenges with bad payers can vary greatly. Thus, the need for help from a debt collection company also varies. Some companies have few or perhaps no bad payers. Other companies have several hundred bad payers on a monthly basis.

Regardless of the number of bad payers, debt collection always starts with a debt collection notice, also called a debt collection letter, a debt collection notice, a demand letter or a §10 letter. At Collectia, we call the letter to the customer a debt collection notice.

Why get help to send a debt collection notice?

Before any form of debt collection can be initiated, the debtor must be notified. It is required by law that the debtor is given a payment deadline of 10 days and receives a clear specification of the claim. In other words, the debtor must be given 10 days to pay their claim. If you do not notify the debtor of a possible upcoming debt collection process, debt collection may not be initiated.

It is therefore important that the debt collection notice is executed and sent correctly before the debt collection is initiated. We also recommend that you are consistent in sending out your debt collection notices and that they are sent as soon as possible after any reminder process has been completed - or immediately after it is established that payment has not been made.

Many businesses cannot cope with the hassle of bad payers. Often they would rather focus on the daily operations and development of their business, rather than focusing on the customers who do not pay. Therefore, debt collection notice, and thus debt collection notice, is always part of Collectia's products - and you can always get us to send your debt collection notice. We only need the unpaid invoice to initiate debt collection on your behalf. A process that always starts with a debt collection notice if you have not done it yourself.

Debt collection notice - what the law says

The law is very clear when it comes to debt collection and is regulated by the Debt Collection Act and the Interest Act.

To start a debt collection process with yourself, with a lawyer or with a debt collection company such as Collectia, you MUST always give prior notice of debt collection. This is done by means of a debt collection notice, or demand letter - as it is legally called in the debt collection law.

In general, the following conditions apply to debt collection alerts:

The debtor must be able to identify what the debt collection notice is about
The debtor must have at least 10 days to pay the claim
The debtor must be informed that if the payment deadline is exceeded, the claim will be sent to debt collection, which will incur additional costs

It does not matter how the debt collection notice is sent to the debtor, but we always recommend that it is sent using the same media/channel that you have communicated with the debtor previously (email, letter or similar). It is always a good idea to be able to document that the debt collection notice has been sent.

Why choose Collectia as your debt collection company?

Collectia A/S has for more than 20 years been a debt collection company for a large number of small and large Danish companies and groups. Our many years of experience will of course benefit you.

Collectia A/S is today among Denmark's leading debt collection companies, with proprietary systems and software that streamline the way our clients' cases are processed and managed.

Let us advise you, free of charge

If you need a professional review of your debt collection setup - our advisors are ready to help. Today, most companies can benefit from outsourcing a large part of their dunning and debt collection processes - including everything from sending out debt collection notices to legal debt collection.