New debt collection law clearly says yes to self-debt collection
The new debt collection law does not imply any obligation to use a debt collection agency and does not constitute a break with current in-house debt collection practices. Creditors can still collect their own claims on their own, as they do today. The amendments to the law clarify the framework for extrajudicial debt collection, but do not change the fundamental principle that in-house debt collection is still fully permitted and ultimately directly regulated by law.
Before KapitalKontroll The main focus is to ensure high compliance with the regulations, stable processes and predictability for our customers – both during the transition phase and when new regulations are fully implemented.
What is unchanged?
Self-collection is still fully permitted
There is still no obligation to use a debt collection agency.
Creditors can still be plaintiffs in their own cases
The rules for legal collection are largely unchanged; this is not governed by the Debt Collection Act.
The Late Payment Interest Act still applies to business claims ("EU fee" for B2B claims).
The late payment interest is the same
The distinction between ordinary and lawyer-led private debt collection will continue.
The working process will be the same: With the help of KK2, extrajudicial measures are sent in line with the regulations and a fee is received for this. Once the extrajudicial collection is completed, creditors can themselves take the case further through KK2.
Clarifications in the new debt collection act for self-debt collection
Although the basic principles are continued, the new Debt Collection Act includes some important clarifications and changes:
1. Debt collection is explicitly regulated in the Debt Collection Act.
Previously, self-debt collection was largely regulated indirectly through practice and preparatory work. The new law now expressly states that the Debt Collection Act also applies to self-debt collection, while clarifying the distinction from debt collection agencies. Legally, this is a strengthening of the legal basis for self-debt collection.
2. Clear distinction between the requirements of creditors and debt collection agencies
The regulations are generally stricter for debt collection agencies than for creditors who collect on their own. This is a choice by the legislator that provides greater predictability and flexibility for businesses that use their own debt collection.
3. New document types in extrajudicial debt collection
The terms "debt collection notice" and "payment request" are more closely associated with third-party debt collection. Instead, other document types are used for self-debt collection, with their own formal requirements and their own rules for when fees can be charged.
4. Regulations will determine the details
Which documents give rise to the right to a fee, the amount of the fee and the formal requirements that apply will be determined in regulations. We do not expect a decrease in the fees for self-debt collection. This allows for more precise and practical rules, but also means that the details will only be finally clarified once the regulations are in place.
5. Less importance of long-term extrajudicial follow-up against private individuals
The introduction of coordinated debt collection (“one collection”) will help to reduce the importance of lengthy extrajudicial follow-up. In many cases, it will be possible to achieve faster and more efficient coverage through collection than previously.
How is this handled in KapitalKontroll ?
KapitalKontroll closely follows regulatory developments. When the regulations are finally determined, the solution will be updated with correct documents, updated form requirements and correct fee handling.
This ensures that our customers can continue their debt collection in a safe, efficient and regulatory-correct manner.
We will return with more information as soon as the details of the regulations are fully clarified.
Our goal is clear: high compliance, safe transition and efficient, predictable collection processes – even after the introduction of new debt collection legislation.