Collection procedure

A debt collection procedure includes the actions and processes that a debt collection case goes through from start to finish.

A debt collection process is rarely the same as it depends on many factors: How does the debtor react to the actions? When does the debtor pay during the collection process? And how is the communication with the debtor?

In this article, we focus on the debt collection process in general and the steps that the process can go through from start to finish.

It all starts with a debt collection notice

All debt collection procedures start with a debt collection notice. The purpose of the debt collection notice is to inform the debtor that a debt collection process will be initiated if the debtor does not pay the amount due to the creditor.

The debt collection notice must give the debtor a payment deadline of at least 10 days before the collection procedure can begin.

It is allowed to add a reminder fee to the debt collection notice if not all fees have already been added.

It is not a requirement that reminders must be sent before collection - it is just an option for the creditor, not a requirement.

However, the debt collection notice is a requirement. If it is not sent or if a statutory 10-day payment deadline is not given, the collection procedure may not begin.

Actions in the debt collection process

After the debt collection notice, the further collection procedure depends on how the debtor reacts.

If the debtor chooses to pay their debt after receiving the debt collection notice, the debt collection process is terminated.

If the debtor does not respond within the 10-day payment deadline, the following tools can be used:

• Accrual of interest
• Attribution of collection fees
• Call to debtor
• Physical presence at the debtor's premises
• Setting up an installment plan
• Registering as a bad payer in a debt register
• Court of bailiffs

Let Collectia help you with your debt collection

At Collectia, we have many years of experience in debt collection and can help you with your unpaid invoices.

It's easy to get started with debt collection at Collectia - whether you have one or 1,000 cases. We offer an online platform that makes it fast and efficient to handle debt collection.

On the platform, you can upload your unpaid invoices and the collection process will begin. You can then follow your case, see the actions taken and communicate with your case manager.