Most companies sooner or later find that despite repeated reminders, a customer does not pay a bill.
When the customer refuses to pay but does not object to the claim, the bill can usually be recovered through debt collection. If a customer says that you did not deliver the agreed item, you cannot initiate a debt collection case, then this is a litigation you need to start.
Can debt collection pay off? The short answer is usually “yes”. Even smaller amounts of 2 – 4,000 can be advantageously recovered through the collection process.
The course of the collection case
A collection case usually follows a very standardized pattern. The case usually starts with sending an invoice to your customer. This invoice is not paid and the problem occurs.
You can then either choose to send up to 3 reminders to the reminder fee, or transfer the case to a collection agency. If you choose to send reminders yourself, be aware of the rules on reminder fees – including may only be charged a fee of DKK 100 per. walk.
Once the case is received by a debt collection agency or lawyer, from here you will send another reminder to the debtor and maintain your claim. If there is still no payment, the so-called “extrajudicial debt collection” is initiated.
Outright debt collection
The out-of-court debt collection means that the debt collection agency or attorney submits a debt collection notice to debt collection costs.
The extrajudicial debt collection should therefore not cost you anything. Your debt collection agency or lawyer will get paid directly from the debtor if they get you your money.
If the out-of-court debt collection does not get the debtor to pay, the case will go to the courts – ie to “in-court debt collection”.
Domestic debt collection
If your claim is less than DKK 100,000, a payment claim will now be prepared, which will be filed directly with the bailiff. The bailiff orders the debtor, and informs him that he must attend the bailiff on a particular day. If the debtor does not show up on that day, you can subsequently request that the debtor be made police.
When a debtor meets in the bailiff’s court, a bailiff’s meeting is held. At this meeting, the debtor’s financial circumstances are discussed and an attempt is made to find a payment agreement. If it is not possible to agree on an agreement, payments may be made in parts of the debtor’s property.
If the debtor does not continue to pay, these assets can be forcibly sold at auction and the proceeds can be used to cover your claim in whole or in part.
A claim for payment of a lump sum will become obsolete after 3 years, and it is therefore important that you start your collection proceedings before the expiry of this period. Otherwise, you will lose the right to the amount.
If the customer has not received the right item
If the customer objects and refuses to pay, for example, because the customer / debtor believes that you have not delivered on time, in the right quality or the like, the problem can only be solved in a lawsuit.
If the case involves less than DKK 50,000, the case can be resolved more easily and cheaper via the litigation process rather than starting a lawsuit.
Make your own debt collection
You can also easily and safely handle the collection process yourself.
E-debt collection is a complete debt collection package where, as a company, you get the benefits that have hitherto been reserved for the lawyers and debt collection companies.