Are you or your company dealing with customers who are unwilling to pay their outstandings?

Well, did you know that you can initiate a debt collection as a solution to your problems? However, before you get started there are several rules you must be aware of. The rules are all stated in the Danish debt collection legislation and will be presented in this article. 

As a company, your first action in collecting your outstandings is to send a written notice in which you declare that the debtor has a deadline of 10 days to pay. The deadline is calculated from the day the notice is sent. In Danish, this first notice is known as a 'rykker'. When sending this notice, you are entitled to charge a fee of 100 Danish Kroner. As well, you are entitled to charge interest on the outstanding amount.

Lawyer or debt collection agency?

Of course, not all companies have the resources and knowledge to execute debt collection routines. Luckily, it is possible to reach out to lawyers specializing in debt collection. The same rules apply to both under the provisions of the Danish Debt Collection Act. If you have already taken the initial steps in a debt collection routine, for example, by sending the first outstanding notice, the debt collections agency or the lawyer may not repeat this step in the routine. 

When a lawyer or a debt collection agency gets involved, their main task is to settle with the debtor - however, this is not possible in all cases. For example, if the debtor refuses to acknowledge the outstanding. The next step in the routine is to take the case to court, initially the bailiff's court. If it is still not possible to reach an agreement with the debtor, they can be reported to RKI or Ribers - the Danish register of people with outstanding debts. 

In the below, you can see selected Danish authorized debt collection agencies:

• AirHelp Denmark ApS, Frederiksberg C
• AL Finans A/S, København SV
• Alektum A/S, Aarhus C
• Alm. Brand PIA A/S, København Ø
• Astreae IVS, Næstved
• Euroincasso ApS, Vejle
• Camden Inkasso ApS, Odder
• Collectia CMS A/S, Brøndby

Debt collection abroad

There are specific routines on how debt collection works in Denmark as described above. However, it is a lot more complicated if you have to carry out a case with debt collection abroad. If you have an outstanding, legal or physical, with a person living outside Denmark, it is the rules of the country in question that decide what you can and can't do. 

When your case is against a foreign company, however, represented in Denmark, your chances of collecting your outstandings are higher. When a foreign company is represented in Denmark, the debt collection case will be conducted under Danish rules and thus in a Danish court. Few Danish debt collection companies are familiar with foreign regulations and laws regarding debt collection. Therefore, it is advantageous to hook up with a debt collection partner in the country in question. 

One of those debt collection agencies is Euroincasso ApS from Vejle.

 Debtor can't hide

Depending on the size of the outstanding amount, some debtors may get the idea that all financial challenges will disappear if you leave the "crime scene". However, it is impossible to hide from a debt collection case outside the country's borders. If a debtor has escaped, naturally, it will require extra work, but it also increases the creditor's chance of getting his money back. 

For example, there are some more practical tools when handling debt collections in some countries, like Sweden and Germany. If you have been granted upheld in court, it is possible, among other things, to withhold the debtor's salary.

How it works

First, it is essential to distinguish between judicial and extrajudicial debt collection. In connection with the former, the debtor must be made aware of the outstanding and be recommended to pay. This debt collection routine can be conducted no matter where the debtor may live in the world. Judicial debt collection is conducted in a court of law, and at this point, specialized knowledge is needed when the debtor is not living in Denmark. 

It is not unusual that Danish law firms and debt collections agencies collaborate with foreign associates. With that in mind, running a debt collection case abroad does not necessarily have to be a complicated affair. Basically, it is all about allying with a debt company that has the resources to take on a case in the country in question. 

If you need help or advice regarding debt collection in Denmark, one of the leading companies is Euroincasso ApS. They offer debt collection of any kind.