Collection process

The term "debt collection process" refers to the process involved in conducting debt collection. The process can range from sending a single letter to a series of actions that together make up the collection process itself.

The collection process always starts with a collection notice.

Before debt collection, and thus the debt collection process, is initiated, the debtor must have received a debt collection notice. The purpose of the debt collection notice is to warn the debtor about debt collection and inform them that non-payment may result in debt collection.

At Collectia, you can find a debt collection notice template so you can create your own. Make sure to comply with all formalities and deadlines in your debt collection notice. Otherwise, you run the risk that the notice is not valid and the collection process cannot be started until a new valid notice has been sent.

There is no requirement as to whether it is you as the creditor or your lawyer/collection agency that sends the debt collection notice. Therefore, you should inform your debt collection provider about it.

No two debt collection processes are the same

We are often asked the question: "What does a debt collection process look like?" - and the honest answer is that no two are the same - and thankfully so.

Because the debt collection process is highly dependent on the debtor's response - or lack thereof.

If the debtor chooses to respond after the first contact, the collection process is short and can either end with a cash payment or an installment plan. If the debtor chooses not to respond, the process will often be long, consist of a number of actions and often end up in enforcement court.

Most debt collection processes include a debt collection notice, reminder letters, calls, attendance at the debtor's premises, registration in the debt register, an offer of an installment plan and a court hearing.

If you want to be sure how your debt collection case is handled, we recommend talking to your debt collection company about what tools they use to recover your money.

The debt collection process with a lawyer or a debt collection agency

As a debt collection company, we often hear the myth that the lawyer can and must do more in the debt collection process than a debt collection company. However, this is not correct.

Both the lawyer and the debt collection company are basically authorized to take the same actions to get a debtor to pay their debt.

There are advantages and disadvantages to both the debt collection lawyer and the debt collection agency. The lawyer often deals with more legal areas than just debt collection, while the debt collection agency focuses primarily on debt collection.

But no matter what you choose, no two debt collection processes are ever the same - neither between lawyers nor between debt collection agencies. The effective debt collection process can vary from company to company.