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Consumer advocates call for a warning before collection

2019-12-20T09:20:07.351Z


Collection agencies often collect money before the bill to be paid is even reminded - at enormous fees. Consumer advocates now require mandatory warnings by law.



If you don't pay your bills, you face an expensive debt collection procedure. Often, those affected do not even receive a reminder beforehand. "So far, this has not been mandatory," criticizes the top consumer protector Klaus Müller. However, a law for this would be "highly overdue," says the head of the Federation of German Consumer Organizations (vzbv).

In a Forsa survey for the vzbv, more than half of the respondents stated that they received a collection claim immediately after the invoice. In some cases, this claim could even be a multiple of the invoice amount. Before a debt collection agency charges fees, consumer advocates believe that there must be at least one reminder.

The debt collection industry is repeatedly criticized, among other things, for high fees for debtors. Justice Minister Christine Lambrecht (SPD) also complained that the demands were often disproportionate to the effort of the debt collection company. The law aims to lower fees. Collection agencies are currently allowed to charge up to EUR 70.20 even for small amounts outstanding, in the future it will be EUR 37.80.

"It is long overdue that the debt collection industry not only adheres to the law, but also to decency," said Müller. Bulk letters cost the companies no more than entering a few address details and sending the letter. Nevertheless, the fees are exorbitant and the profit margins extremely high. This changes Lambrecht's bill significantly too little. "At least for the letters that are sent in bulk business, the maximum that should actually be applied is the fees that are actually incurred," said Müller. "That is maybe 15 or 16 euros."

The debt collection industry fears that medium-sized businesses in particular will no longer be able to collect some of their claims. The Federal Association of German Debt Collection Companies had already dismissed the claim that the work was not worth the fees as completely undifferentiated in November. "We do more than send automated writing," it said at the time.

Source: spiegel

All business articles on 2019-12-20

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