You have received a debt collection letter?

If you have received a debt collection letter, it is important to thoroughly review such letter with regard to its contents and the sender. Anyone who has received a debt collection letter will at first be advised of an outstanding receivable against him. The name of the owner of the outstanding receivable is stated, as well as the due date of the invoice which the customer did not pay. Various costs are listed, including the amount of the principal claim and ancillary claims such as dunning costs. According to § 11a Legal Services Act, a collection agency is subject to information and disclosure obligations for the first assertion of a receivable against a private individual.


You received a debt collection letter - take action!

First, check the receivable for correctness. Review your documents and clarify whether the account is real and you may have already paid it. You can also view the claim online and get more information at If you have received a collection letter , do not hesitate to obtain information on the collection agency. The internet may be of help or consumer advice centres can provide information. In addition, check whether the collection agency is even entitled to dun the specific receivable. Not everyone is allowed to collect debt. This requires registration with the responsible authority, relevant to the address of the collection agency. Only if all these facts have been verified and it is in deed a due claim, the debtor should settle it.


Receiving a debt collection letter - what happens if you do nothing?

If you received a debt collection letter and did not respond, you will shortly after either receive a second letter with an instalment agreement or be contacted by the collection agency by telephone. Telephone collection is another way for a collection service provider to reach an out-of-court settlement. If the debtor still does not respond , he must anticipate the initiation of a legal dunning procedure. As the legal dunning is an application procedure, so the creditor needs to file an application for a default notice. If you have received a collection letter, you should take action at the beginning: from the delivery date of the default notice at the latest, it can become expensive for you, as costs of legal proceedings will be added to the principal and ancillary claims. Even after delivery of the default notice, the debtor has the option to pay or to file an objection within a period of two weeks from receipt of the default notice.