Debt collection agencies: Clearing up myths and misunderstandings

Debt collection agencies: clearing up myths and misunderstandings

When it comes to debt collection agencies, there are many myths and misunderstandings circulating that create a false picture. These misconceptions can have a negative impact on both debtors and creditors. That is why we from Credifin, as a collection agency, want to clarify some of these misunderstandings and present the facts.

Myth 1: Collection agencies are only for large companies

It is a common misconception, especially among small businesses, that debt collection agencies only provide services to large companies. The truth is that debt collection agencies, including Credifin, support businesses of all sizes in collecting their outstanding invoices. Whether you are a sole trader or a multinational company, Credifin can relieve the pressure of chasing late payments.

Myth 2: Debt collection agencies use intimidating tactics

There is a misconception that collection agencies use intimidating or unethical methods to collect debts. While there can be bad players in any industry, reliable debt collection agencies like Credifin must adhere to strict ethical guidelines and legal regulations.

Myth 3: Collection agencies can collect debts regardless of the age of the debt

Some mistakenly believe that collection agencies can collect debts no matter how old they are. In reality there is a statutory limitation period for collecting debts, in the Netherlands this is usually 5 years. Some receivables, such as consumer purchase and energy supply, have a time limit of 2 years.

Myth 4: Once enabled, you have no control over the collection agency

Many companies are afraid that they will lose control as soon as they call in a collection agency such as Credifin. However, the opposite is true. Credifin works closely with the company, provides regular updates and has an online portal where all letters, e-mails and telephone conversations are stored.

Myth 5: Debt collection agencies buy debt and make money off the entire debt

There is a misconception that debt collectors buy debt from companies and then collect the full debt amount. Although some collection agencies do indeed buy up debts, this is not the usual working method at Credifin. We always work on the basis of no cure, no pay, which means that we receive a percentage of the successfully collected debts.

Myth 6: Collection agencies are always the “bad guys”

Debt collection agencies, including Credifin, are often portrayed negatively. However, the reality is that they play a vital role in the economy by helping businesses collect debt and maintain healthy cash flow. We are here to ensure that companies get what they are entitled to.

Myth 7: Hiring a collection agency always damages customer relationships

Maintaining good relationships with customers is vital for any business. Many companies are therefore hesitant to call in debt collection agencies such as Credifin, for fear of damaging customer relationships. However, professional collection agencies approach debtors in a respectful and legally correct manner. At Credifin, we strive to find a solution that works for all parties, without damaging the relationship between the company and the customer.

Myth 8: Collection agencies can seize property at any time

Although collection agencies such as Credifin have certain rights to collect debts, they cannot simply seize property. In many jurisdictions, including the Netherlands, a strict legal process must be followed before a person’s property can be seized.

Myth 9: You can ignore if a collection agency contacts

Some people think they can ignore a collection agency like Credifin without consequences. This is a dangerous misconception. Ignoring a collection agency can lead to further legal action, including legal procedure with all the associated costs. It is always best to communicate and try to find a solution.


Collection agencies play a vital role in maintaining cash flow and minimizing risk for businesses. By understanding and correcting misconceptions, we can promote fairer and more effective use of debt collection services. It is always important to remember that collection agencies are there to help, not hinder.

If you have any questions or concerns about engagement of a collection agency, do not hesitate to contact us for professional advice, we are happy to help you. Telephone number 020-3452675 or info@credifin-nederland.nlm

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Why Credifin?

  • No subscription or file costs
  • 100% No cure No pay
  • Letter sent to the debtor the next working day
  • Easy upload of your invoices
  • Follow the collection process 24/7 via your online file
  • Unique: Free collection with Registered Email ™

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