Recovery

If a customer chooses not to pay one or more invoices or repay a loan, the debt may need to be recovered.

Recovery refers to a series of actions that the creditor can take in the hope of recovering all or part of the outstanding amount.

Collection can either be done by the creditor themselves, often called self-collection, or by the creditor's collection company or lawyer, also known as third-party collection.

Recovery is synonymous with debt collection and the two terms basically mean the same thing. The word 'recovery' is often used in the context of public authorities such as municipalities and government agencies, while 'debt collection' is primarily used by private companies, banks and other creditors.

When it comes to recovery from a public authority, it is often referred to as municipal or municipal recovery.

Who can handle debt collection in Denmark?

In Denmark, a creditor can take care of debt collection themselves, but can also let an authorized debt collection agency or a lawyer handle the process.

Running a debt collection business in Denmark requires authorization from the police. There are around 100 authorized debt collection companies in Denmark that can potentially help you.

As a creditor, you should be aware that not all debt collectors will take your case - some have requirements for case volume, case type, etc.

In addition to debt collection companies, lawyers can also help with debt recovery, but not all lawyers offer this service. For example, only 59 lawyers have listed "debt collection" as their area of work on Advokatnøglen.dk. However, it is estimated that several lawyers offer debt collection without formally registering it, but we estimate that there are several lawyers who actually offer debt collection.

What does recovery involve?

Collection can vary and can be customized to the individual creditor. The process ranges from reminder letters to the actual collection process.

Most collection processes start with one or more reminder letters, with or without a reminder fee. These are optional for the creditor, but most choose to send them before the actual collection process begins.

The debt collection process may also include physical attendance, phone calls, imposition of fees and registration in a debt register such as RKI or Debtor List.

How do I start the recovery process?

Many people choose to send reminders before the debt collection process starts. The reminder letters have the same purpose as debt collection: to get the creditor's money back.

However, before the actual collection process can begin, a debt collection notice must be sent. The purpose of this letter to the debtor is to notify them of debt collection (recovery).

The debt collection notice is mandatory according to the Debt Collection Act and the collection process may not begin until the debt collection notice has been sent and a payment deadline of 10 days has been given.

Once the debt collection notice has been sent and the 10-day deadline has passed, collection can begin with the relevant actions that the creditor or the creditor's debt collection agency deems necessary. However, these actions must always be in accordance with good debt collection practice and other legislation.

Get help with debt collection with Collectia

At Collectia, we have many years of experience with debt collection for both companies, municipalities and public institutions.

Our years of experience have enabled us to develop a flexible and professional recovery platform that combines our expertise with modern AI technology.

Our proprietary AI, CAI (Collectia Artificial intelligence), helps us tailor the right process for your cases and your debtors.

With Collectia, you have easy access to your cases and can track them online whenever it suits you.

Contact Collectia