What is a debt collection agency

Collection agencies in Germany - the business with debt

The most important thing about debt collection agencies

What are Collection Agencies?

Collection agencies are service providers by definition. You enforce third-party claims in your own name or in the name of your client (so-called debt collection).

Who can offer debt collection services?

Only registered debt collection agencies are allowed to practice this profession.

What are debt collection agencies allowed to charge?

If necessary, ask a lawyer or contact a debt advice center or the consumer advice center, because not all collection costs may be charged to the debtor. So is a first reminder z. B. generally free of charge. Interest cannot be arbitrarily high either.

What is a debt collection company?

Their reputation is not always the best, and their approach makes some media buzz every now and then. Courts have often dealt with the methods of this branch.

We're talking about Debt collection agencies. These service providers have become specialized in enforcing claims.

If you don't pay your bills, you have to expect that one day Writing a debt collection agency flutters into the house in which he asked to pay becomes.

The word "Debt collection“Comes from Italian (incassare = collect, collect money). Collection therefore means the collection of third-party claims in your own name or someone else's name.

What exactly does a debt collection company do?

Collection agencies support the creditor in obtaining their enforce open pecuniary claims. That can on two types happen. This can be a Hire debt collection agencies or his sell open receivables to this. In the second case, the debt collection agency then asserts the claim in its own name.

The debt collection service provider can do this active in different phases become: in one first step the company will try that Collect debts out of court. It also challenges the debtor to do this Reminders to pay.

If these payment reminders are unsuccessful, the debt collection company can - if it has been instructed accordingly - the open invoices in one judicial dunning procedure assert. In this way, the debt collection agency first obtains one Payment order and on its basis one Enforcement order.

With this enforcement order, the obligee or the commissioned company can the claim by way of foreclosure push through. Debtors must then expect that suddenly the Bailiff at the door stands or z. Legs Attachment of accounts announced and carried out.

Especially requirements, their existence or amount disputed by the debtor are sometimes also before the civil court in one Litigation asserted. With the Judgment as an enforcement order can then also Foreclosure measures be initiated.

When a Debtor bankrupt is, foreclosure measures usually bring little, especially if his assets or Income below the attachment limit lies. In this case, some debt collection agencies offer a Monitoring procedures and keep the The debtor's financial position at a glance.

Such a procedure makes perfect sense. Because the enforcement order allows the Foreclosure within the next 30 years. This is how long the creditor or the debt collection agency has to enforce his claim.

A Debt collection, that is, the collection of foreign money claims, does not necessarily require a reminder. Debtors can be in default even without a reminder, namely if a immediate payment agreed became or if the debtor is one agreed payment term (Due date) does not comply.

How does a reputable debt collection company differ from dubious debt collectors?

A good debt collection service provider will deal with collecting debt adhere to the legal rules and only use the possibilities offered by the relevant paragraphs.

consumer are usually less familiar with this matter and are therefore often unsurewhen they receive a collection letter or even phone calls. The following behaviors are more likely to speak for you dubious debt collector:

  • Debtors become with aggressive wording and massive threats pressured and asked to pay.
  • The Threat with the police or the public prosecutor is usually baseless. The Insolvency per se is not a criminal offense. Creditors and debt collection agencies who want to assert a (legitimate) claim must turn to the civil court and not to criminal prosecution institutions.
  • From the collection letter it is not clear what the outstanding claims result fromwhether and, if so, which contract the alleged debt is based on.
  • The Debt collection agencies equips the debtor a visit at home and puts him under there print.
  • Danger! The Threat of legal action is according to the current case law of the Federal Court of Justice not impermissible per se. It is only then if the company disguises the fact that the debtor can take legal action against unjustified claims (Az. I ZR 25/17).

Some unsettled consumers wonder if it's for a reputable debt collection companies in Germany a list there. Indeed you can Check free of charge in the legal registration registerwhether a debt collection company is registered there.

Because it is only allowed to work in this branch if that is the case. Otherwise, the service provider commits a Administrative offensethat can get expensive. A Unfortunately, this is not a guarantee of seriousnessbecause even registered companies sometimes resort to questionable methods.

The Membership in an industry associationwho undertakes to properly exercise debt collection and accepts complaints and also investigates them, is a sign of seriousness. Even if the company answers your inquiries and objections in a factual and content-related manner, this speaks for its serious approach.

The Federal Association of German Debt Collection Agencies (BDIU) advocates a conscientious, honest and proper professional practice in this branch. The association describes membership in the BDIU as a “seal of approval for serious debt collection” because its statutes provide “professional guidelines”. There is no official list for reputable debt collection agencies, but they can Member list of the BDIU serve as an indication of seriousness.

Receiving a cover letter from the debt collection company - what to do?

If you are unsure whether the letter from a debt collection service provider is justified or whether there are further consequences, you should immediately contact a Consumer advice center or one Debt counseling and get advice there. Also a Lawyer can give you information on this.

The following points help to assess whether the cover letter comes from a reputable company how You in the individual case behavior should:

First check carefully what requirement You should pay and what costs, fees and interest You will be billed. The request for payment must be for the consumer comprehensible be.

The debt collection agency must the following information in the cover letter specify:

  • Name, company and full address of the actual creditor
  • Name, company and address of the client
  • Note on the official registration as a legal service provider on the letterhead
  • Reason for the asserted claim
  • Subject matter of the contract and date of the contract in the event of a contractual claim
  • reasonable payment term that has not yet passed

Let the Original power of attorney or the Assignment deed of the debt collection company submit.

Does the obligee or the company commissioned by him have one Enforcement order or another enforcement order obtained so have to You also meet the requirement contained therein pay.


Makes the debt collection agency unjustifiably a claim you should do so immediately contradict and don't pay. Justify Your objection and enclose appropriate evidence if possible.

Can a debt collection company claim additional costs in addition to the actual claim?

When creditors hire a debt collection agency, there are additional costs for the debtor. These are usually in the collection letter next to the Main claim of the original creditor listed:

  • Interest on this claim
    If interest rates are in the double-digit range, you should pay attention and contact a consumer advice center or a lawyer.
  • Dunning costs
    Danger! The first reminder must always be free of charge. From the 2nd reminder onwards, a maximum of 2.50 euros can be charged.
  • Collection fees
    Only those costs may be asserted that would have arisen if the obligee had hired a lawyer to enforce the claim.
  • Flat-rate telephone collection fees, Account management fees, costs for a lawyer and the sending of a statement of claims are generally not permitted and do not have to be paid.

Can debt collection agencies arrange for a SCHUFA entry?

Some collection agencies also threaten with a negative SCHUFA entry. However, this may only take place if the Claim justified is and so is the debtor not paid after the 2nd reminder. Denied the consumer the claim and informs the debt collection company, so this may not transmit any data to SCHUFA.

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Collection agencies in Germany - the business with debt
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