Debt collection warning template

A debt collection notice template can be a good idea if you as a creditor want to send a debt collection notice to your customers when they have not paid.

Creating, filling out or sending a debt collection notice is basically not very difficult, but there are a few very important details and formalities that must be in place before the debt collection notice is legal and valid.

If the legal requirements for the debt collection notice are not in place, the debt collection notice is not valid and you cannot start the actual debt collection process.

You will also be required to have sent a debt collection notice prior to, for example, judicial debt collection in the enforcement court.

Why send a debt collection notice?

A debt collection notice is used to alert the debtor about debt collection. Whether your debtor is a business or an individual, all debtors are entitled to receive a debt collection notice alerting them of an impending debt collection process.

The debt collection notice must give the debtor a payment deadline of at least 10 days. If the claim and any reminder fees are not paid, debt collection must be initiated.

The debt collection notice must be sent regardless of whether the collection process is carried out by a debt collection agency, a lawyer or a bailiff.

It is not a requirement that the creditor sends the debt collection notice - the creditor's debt collection company or debt collection lawyer can also do this.

A reminder fee may be added to a debt collection notice, provided that this is done in accordance with the rules for the imposition of reminder fees.

What makes a good debt collection notice template?

A good debt collection notice template contains the elements that make a debt collection notice legally compliant.

The debt collection notice is regulated in section 10 of the Debt Collection Act. The legal text states that the debt collection notice must clearly state all relevant information about the financial circumstances so that the debtor can assess the claim. In practice, it is typically enough to refer to an invoice number - or attach the unpaid invoice(s).

In addition, section 10 of the Danish Debt Collection Act states that the debtor must be given a deadline of at least 10 days from the sending of the debt collection notice - preferably more than 10 days, but not less. As a debt collection agency, we recommend that you do not give a deadline longer than 10 days.

In addition to the above, we recommend that you make room for as much information in your debt collection alert template as possible: debtor contact details, creditor contact details and a clear text stating that if the 10-day payment deadline is not met, a collection process will be initiated.

Synonyms for a debt collection notice

The word "debt collection notice" is probably the most commonly used word when talking to your bookkeeper, debt collection company or accountant.

But you may also come across terms like "debt collection notice", "debt collection letter", "section 10 letter" or "debt collection letter". Whatever word you encounter, it all means the same thing - a debt collection notice.

When you issue the debt collection notice, there is basically nothing stopping you from using the above terms for the notice, but the word "debt collection notice" will probably be the most recognizable and will not give rise to misunderstandings with the debtor.

However, if you are looking for a debt collection notice template, be aware that it can also be called "debt collection letter template", "debt collection notice template" and similar.

Legally, there is no obstacle in what you call your debt collection notice, and it doesn't matter what your template says - as long as the debtor is clearly notified that it is a debt collection notice.

Download a free debt collection alert template here

At Collectia, we help thousands of Danish companies every day with debt collection and of course also help you and your business.

We regularly publish articles, dictionaries and tips and tricks that should all help make debt collection easy - whether you choose to handle it yourself through self-collection or with the help of a debt collection agency.

We have created a debt collection notification template, you can download the free debt collection notification template here.