What are collection costs?

 

If you do not pay an invoice on time, the creditor may charge collection costs.

 

Consumers must be given the opportunity to pay the outstanding invoice (without extra costs) within 15 days. After that, costs may be charged. These additional costs are also known as collection costs or extrajudicial collection costs. They are to reimburse the creditor for the costs it incurs collecting the debt.

 

How are collection costs calculated?

 

Collection costs consist of a percentage of the outstanding amount. This is legally determined. The percentage is calculated according to a graduated scale. These percentages and amounts are as follows:

 

 

Outstanding Amount Collection Costs   
Over the first € 2.500 15%
Over the next € 2.500 10%
Over the next € 5.000 5%
Over the next € 190.000 1%
Above € 200.000 0,5% 
   

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