How to check whether a debt collection letter is correct

Do you receive a payment reminder, or reminder, from a supplier or collection company? Then act quickly. In 5 steps, check whether the collection letter is correct.

1. Check the sender

First, check if you recognise the business and the order:

• Have you placed the order?
• Have you received the products or services?
• Is the amount correct?

Do you not recognise them? Then contact the collection company and ask for proof of the invoice. If it remains unclear what the invoice is for, contact the supplier.

Perhaps the supplier made a mistake and admits it, or you received a fake invoice. If you accidentally ordered something or were misled, contact the sender of the letter and try to get the reminder revoked. If you cannot work it out, seek legal help.

2. Check if you have paid

Is the invoice correct? Then check your bank statements. You may have already paid the bill. If so, contact the supplier. If they confirm that you have paid, you can ask the collection company to withdraw the reminder.

Once you have paid, also check that you have transferred the money to the correct account number. Is the account number wrong? Then discuss with your bank how to get that money back. You still have to pay the bill. Before you pay, you can check whether the payment term has already expired.

Have you already paid the bill, but too late? Then contact the collection company, send proof of payment and pay only the collection fees.

3. Check whether the debt collecting agency is registered

The Debt Collection Services Quality Act (Wki) sets out the rules for debt collecting agencies. For example, some debt collecting agencies must be listed in the Debt Collection Services Register (Register incassodienstverlening). This also applies to debt collecting agencies that send bills to private individuals or businesses with business structure  sole proprietorship, general partnership (VOF), or professional partnership (maatschap).

If the debt collector is not in the register, do not pay the collection fees (in Dutch), and report the firm to the Inspectorate of Justice and Security (Inspectie Justitie en Veiligheid, in Dutch). Please note: even if a firm is not in the register, you may still owe the bill. In that case, pay the open amount to the supplier.

4. Check payment term

Check if you are to late with your payment. A payment term may apply. If not, a 30-day term applies to business invoices.

In a price quotation or general terms and conditions, a supplier can agree a different payment period. For business customers, the courts consider a minimum period of 5 to 7 days acceptable. The payment term starts on the date you receive the order. If you receive the invoice later, the term starts on that date.

Is the payment period not over and you have yet to transfer the money? Then pay the supplier as soon as possible and ask for the withdrawal of the collection invoice.

5. Check collection costs

Did you not pay the invoice or did you pay too late? Check if the collection costs are correct. The law sets the maximum debt collection fees. For example, a supplier or debt collector may charge up to 15% for bills up to €2,500. The minimum fee is €40. The supplier may also charge statutory interest (in Dutch).

Are the fees correct? If so, pay the demand within the time limit stated in the collection letter. By law, this must be a fair time limit. Often, this is 14 days.

If the amount of the collection charges is incorrect, object in writing (in Dutch). You should also pay any collection fees, but only up to the maximum amount allowed by law, plus any interest. For example: if you forget to pay a bill for €500, you will pay a maximum of €75 in collection fees.

If you cannot pay on time, arrange a payment plan.

Can you not pay on time? Then ask the debt collecting agency for a payment plan (in Dutch). The costs can add up quickly. If you do not pay or do not pay on time, the collection company may also charge interest costs. If you still do not pay, the supplier may call in a bailiff (in Dutch). This may start legal proceedings with high costs that you have to pay.

A supplier or debt collecting agency is not obliged to cooperate with a payment plan. If you cannot reach an agreement, seek help with your debts, for example from your municipality or Geldfit.