What is the difference between debt collection notice and debt collection?

What is debt collection notice?

When you have not paid a bill, the person you owe money can choose to send a debt collection notice or have their debt collection partner send it for them. It is a notice that must be issued in order to start a debt collection process. It is sent no earlier than 14 days after the invoice due date and has a minimum payment deadline of 14 days.

Many people are intimidated by having received a collection notice; however, by paying the notice before the payment period expires, the case is closed, and no additional charges will occur. The case will be forwarded to debt collection if the payment is not made. 

What is debt collection?

A collection charge is added to a case once it has progressed from the debt collection notification phase to debt collection. A collection fee is the equivalent of a reminder fee in the collection process. The size of the rates varies depending on the size of the claim and who receives the claim – that is, whether it is a company or a private individual.

As a result, the original amount of your bill will be larger than if you paid it right away. Additional expenses will be imposed later in the debt collection procedure if you do not settle your debt.

If you are having difficulty paying your debts, it is important that you contact the debt collection agency as soon as possible. Then you may work together to discover a solution. More information about the repayment agreement can be found here.

Who can handle your case?

Debt collection is governed by strict confidentiality and privacy regulations. Therefore, only you personally have the right to access and follow up your own debt collection cases. An exception is if you authorise another person to process and receive information about your cases. 

Do you disagree with the invoice?

If you receive an invoice that you do not agree with, it is important that you contact the sender of the invoice. A helpful piece of advice is to keep track of all documentation, what you agree on, and who you speak with during the conversation. In cases where there is an error in the claim and you do not agree, the claim will be disputed. The debt collection agency will then be unable to collect the funds, and the case will be referred to the Conciliation Board for further consideration.

What happens if the case has already been sent to a debt collecting agency?

Once Settl has received a claim from the creditor, our role is to act as a kind of mediator in the communication between our customer and you, the claim recipient. If you disagree with the claim, it is important to specify whether you disagree with the entire claim or just a part of it. You must also explain why and what you disagree with. Please contact us if you have