What are collection costs for?
A debt collection agency provides a service to collect your outstanding invoices. In order to do this, they have employees and they have to be able to pay their overheads. Collection costs may further consist of interest rates on the principal sum.
When can interest be charged?
The interest starts from the moment the payment deadline has passed, without a notice of default being required. The legal consumer interest rate is 3 to 4% and the statutory interest rate for companies is 8.05%. This interest is always automatically included by Credifin in the amount due.
Which collection costs are charged to your debtor?
The amount of the costs charged to your debtor have been limited for claims collected since 1 July 2012, as they fall under the Besluit vergoeding voor buitengerechtelijke incassokosten (extrajudicial debt collection costs). This is to protect debtors against extremely high collection costs.
The amount of these costs can never exceed € 6,775 and is calculated as follows:
Principal sum < € 2.500?: 15%?: (min. amount € 40)
Principal sum > € 2,500?:
- Over the next € 2,500: 10%
- Over the following € 5,000: 5%
- Over the subsequent € 19,000: 1%
Before these costs can be brought into account, a final notice/notice of default must be sent first. This can be done by registered letter or registered email. This states that your customer has still not paid despite previous payment reminders. You further state that you expect to receive the payment within x number of days (min. 14 days), otherwise a collection agency will be called in and the resulting costs will be charged to the debtor.