Received a reminder with additional costs? What you can do now
‘If you ignore reminders, you risk increasing costs and legal action,’ emphasises Sebastian Ludwig in a recent article in the business magazine “Capital”. He explains why an early response is crucial and how those affected should best behave.
Every year, around 33.4 million debts are handed over to debt collection agencies in Germany. The reason: unpaid bills due to forgetfulness, misunderstandings or financial bottlenecks. Many people react to reminders with uncertainty or even inaction. But according to Ludwig, this is precisely the worst option: ‘You can't hope that the creditor will stop the proceedings. That's not going to happen.’
Reminder process: Understanding deadlines and costs Companies initially send out free payment reminders after the payment deadline has passed. If there is no response, reminders are sent for a fee. If a claim is handed over to a debt collection service, additional fees are incurred. These are based on the German Lawyers' Fees Act (RVG) and increase with increasing delay.
‘For small claims of up to 50 euros, the fee is usually 27 euros, but can also be lower depending on the case if consumers react quickly,’ explains Ludwig. Those who pay immediately after the first debt collection reminder can benefit from a reduced fee.
Five steps for the right response to reminders Sebastian Ludwig gives consumers specific recommendations to avoid unnecessary costs and legal consequences:
1. check: Is the claim justified? If in doubt, you can have it checked by consumer advice centres.
2. scrutinise the charges: Are the costs itemised comprehensible and reasonable?
3. make contact: Talk to the creditor or debt collection service to clarify any ambiguities or agree instalment payments.
4. pay quickly: Paying early saves additional surcharges.
5. seek help: Debt counselling services provide support in the event of financial difficulties.
Reputable debt collection work: transparency and solutions instead of pressure Ludwig emphasises that modern debt collection service providers such as coeo work transparently and actively involve consumers in the solution process: ‘Our aim is to reach a fair and viable agreement for both sides.’ With the right approach, consumers can efficiently resolve dunning procedures and avoid high follow-up costs.
Read the full article in Capital here (only in german) Mahnung erhalten? Das können Verbraucher tun, um Kosten zu minimieren - Capital.de