Having drawn from the expertise of Atradius Collections' local offices, the International Debt Collection Handbook explains the different regulations and procedures for debt collections in Germany.
Amicable collections
General information
We maintain a professional collection process and focus on the relationships between you and your debtors at all times. Our team of collection specialists carry out the collection process in-house. We contact debtors both verbally and in writing while adhering to federal and state law.
When there is a dispute, we aim to reach an amicable solution between you and your debtor. We do this by analysing all the contractual documents (e.g. signed contracts, orders, confirmations, invoices, delivery notes, as well as all standard terms previously agreed to). All of our investigations are completed with the assistance and agreement of our legal team. Debtors are allowed to ask for a signed original power of attorney to be presented to them.
Interest
We always charge debtors for interest. It’s calculated from the base rate set by the Deutsche Bundesbank plus 9% on a daily basis (see the European Directive 2011/35/CEE Article 3 in conjunction with paragraph 288, section 2 of the German Civil Code).
From a cultural point of view, German debtors are used to paying late payment charges, although the actual amounts of interest payment are considered a matter of negotiation between debtors and collectors.
Debt collection costs
In Germany, under the German Civil Code paragraph 280, section 2 and 3, and paragraph 286, debt collection costs are chargeable to debtors, representing the creditors’ claims for late payment. If you have a special contractual agreement, this can be taken into account as long as the debtor has previously agreed to the terms.
From a cultural point of view, German debtors are used to paying debt collection costs, though often the actual amounts of these costs are considered a matter of negotiation.
The Debt Collection Handbook presents a snapshot of Germany's economic situation and covers the following topics:
- Prescription
- Retention of title
- Legal procedures & legal system
- Enforcement in debt
- Insolvency proceedings
- Arbitration and mediation
To read more about the steps and procedures undertaken in debt collections in Germany and other countries: