What is a payment reminder?
A payment reminder is a notification of non-payment related to one or more unpaid claims. Companies typically send payment reminders when an invoice has exceeded its payment deadline and the debtor has not paid.
The payment reminder is therefore used to remind a debtor of an outstanding payment in case the debtor has, for example, overlooked one or more invoice claims.
A payment reminder can also often be known as a reminder or reminder letter.
Payment reminder or reminder letter?
There are often many names for the same concept - and the same goes for dunning for an outstanding payment.
A payment reminder can also often be called a reminder letter, reminder or reminder letter - but there is no difference in what you choose to call it, and there is no correct or incorrect term whether you choose to call it a payment reminder, reminder letter or reminder.
The Danish Interest Act uses the term 'reminder letter', which is why you will often see this term used by lawyers and debt collection companies.
How is a payment reminder designed?
There is no legally defined right or wrong way to structure a payment reminder.
You are therefore, in principle, free to design and set up your payment reminder as you wish. However, it is important to remember that the purpose of the payment reminder is to remind the debtor of one or more missing payments. Therefore, it is recommended that you always refer to the specific invoices to which the payment reminder relates. This makes it easy for the debtor to identify which claims are involved.
Reminder fees on payment reminders
As a creditor, you have the option of imposing up to three reminder fees on your payment reminders, with a maximum of DKK 100 each, making a total of DKK 300.
It is important to note that there must be a minimum of 10 days between each payment reminder and that the debtor must have 10 days to pay the claim.
Compensation fee on payment reminders
As a creditor, you have the option to impose a compensation fee of DKK 310 on your debtor.
The compensation fee is an independent fee that is not related to the reminder fee. However, in practice, most still choose to impose the compensation fee together with the payment reminder, possibly in combination with a reminder fee.
Compensation fee on payment reminders:
Payment reminder template
What to write in a payment reminder? What does a payment reminder look like?
There can be a lot of questions about payment reminders, but it's actually not that difficult or complicated to create one. You have the option to design them on your own letterhead and you can write whatever you want.
However, it is always recommended that you refer to the claim, possibly with an invoice number and the amount. It is also important that you give the debtor at least 10 days to pay the reminder if a reminder fee has been charged.
We have created a template for reminder letters, which you can find here:
