Debt Recovery Services for Netherlands
The staff of our dept collection agency is trained to retrieve money from customers that are hard to deal with; we will contact the debtor using our strong but diplomatic techniques and make sure your unpaid accounts are quickly sent to your bank account.
Here below you will find a detailed explanation on how we collect debts and both amicable and legal steps we are following.
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We usually contact the debtor the same day of account placement.
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1.1 Amicable Phase
1.1.1 General
Our goal during the amicable phase of collection is to remain professional and ensure a continued relationship between our client and the debtor. That’s important to this phase of the process, and our expansive team of professionals will pursue this phase of the process in-house. Our Canadian debt collector will recover debts via telephone contact as well as written contact with the debtor.
1.1.2 Local agent
We maintain direct contact with all of our debtors, and our clients, at all times. While we maintain this contact whenever possible, it is sometimes required of us to use LDC contacts in Canada in order to assist the collections process and make it more effective. Local regulations prohibit us from visiting debtors in person, however.
1.1.3 Interest
Laws and regulations passed by the national Canadian government do not permit companies, or debt collectors, to attach interest to an outstanding debt. However, this regulation can be superseded by any agreement between our client and the debtor that stipulates the addition of interest to an existing debt once it has been placed for collection. If this is the case, that interest — and any other costs — can be added to the total debt that we are trying to collect. It’s worth noting, however, that the Criminal Code of Canada prohibits the collection of interest over 60 percent and declares such a practice to be a crime.
1.1.4 Debt collection costs
Canada’s laws and regulations, as they pertain to debt collection, prohibit the attachment of any costs to the debt that might be imposed by the company or their collection agency. Accounts Receivable Canada adheres to this law, but is allowed to collect costs when such a possibility has been outlined in the terms and conditions set forth by our client and agreed to by the debtor.
1.2 Retention of Title
Retention of Title is heavily tilted toward creditors in the Netherlands, so long as any ROT stipulations are placed in the original contractual agreement between the creditor and the debtor. A court must accept these stipulations in order to be enforced, and a debtor has the right to appeal any such decision. Creditors must file for Retention of Title within six weeks of the invoice being past due.
There are two kinds of Retention of Title:
Basic Retention of Title states that any goods supplied remain the property of the creditor until an invoice has been paid in full. The creditor is able to get any goods returned as soon as payment has become past due.
In cases known as Increased Retention of Title, the goods delivered to a debtor in an open account agreement remain the legal property of the creditor until the open account is completely paid off and satisfied. This is the most common form of Retention of Title.
If a debtor does not willingly release goods under Retention of Title, it will be necessary to pursue legal action in order to get them back. A bailiff will be assigned to the case and will be responsible for their return.
1.3 Safeguarding measures
It is possible to seize assets from a debtor before pursuing legal action in the Netherlands. The seizure is essentially done in order to secure the debt, and the debtor must pursue legal action against the creditor within 14 days of the seizure taking place. If not, the seizure will be considered expired and the goods will be returned. Seizures may also expire if the debtor is declared bankrupt.
If the creditor receives a favorable verdict or judgment during the legal action, the seized goods will be liquidated and used as payment toward the amount owed to the creditor. Debtors are able to offer voluntary securitization, like mortgages or assets, without being subject to a seizure, so long as they’re cooperative during the safeguarding process.
1.4 Legal Procedures
1.4.1 General
The Dutch Civil Code and the Civil Process Code govern lawsuits between companies and individuals. A lawsuit can be initiated against a debtor without a formal written warning, though this is not common in the Netherlands. Courts will require evidence to be delivered by the creditor during pre-court procedures as a way to either obtain payment or reach a settlement without pursuing legal action. If this procedure is followed, a written notification to the debtor is typically sent.
1.4.2 Legal System
The County Court system handles debts up to 25,000.00 EUR. Larger cases are handled by the District Court, where an obligatory representative is prescribed to the case. Our own LDC network manages these procedures.
1.4.3 Required documents
To begin the legal dunning procedure, we’ll need the following documents:
– Copies of the contract
– Copies of invoices
– Copies of account statements
If legal dunning moves into a more traditional lawsuit procedure, further documentation will be required. Clients should then provide the following:
– Copies of the contract
– Copies of order confirmations and delivery notices
– Copies of correspondence
– Names of witnesses and experts, if relevant
Every document submitted must be part of a writ of summons. Additionally, names and full addresses of witnesses must be submitted to us and then delivered to the court before those witnesses can be called in the case.
1.4.4 Legal dunning procedure
Legal dunning is not a known term in the Netherlands, though a similar process is often used. This process involves using a very specific legal procedure in order to pressure the debtor into making full payment immediately, or within a brief payment plan. Typically, this is done by filing a bankruptcy petition and utilizing that as leverage to force payment before a traditional lawsuit is pursued. This is generally very efficient, and can take less than one month in most cases.
1.4.5 Lawsuit
Legal proceedings always arise as the result of a dispute filed on behalf of either party. A Power of Attorney document is not required, as written approval from the client will suffice.
Before initiating a lawsuit, Debt Collection Agency Service Netherlands assesses the debtor’s financial situation and decides whether any lawsuit will be able to enforce payment and execute any judgment or verdict. If those things are possible, the process proceeds and the necessary documents are collected from the client. If additional evidence is needed, the legal collector utilized by our offices will request them from the client.
Once the case can proceed, a summons is issued to the debtor via the legal collector or the appointed LDC. A bailiff serves the summons. The debtor is permitted to defend himself or herself in County Court. Those cases that go before the District Court will require the debtor to have representation.
The debtor will need to file a writ of defense. After it has been filed, a hearing will be called and both parties must be present. This hearing is primarily conducted to gather further evidence in the case, as well as to attempt an agreement between the parties that will result in payment. If no agreement can be reached, legal action will continue according to the Civil Code.
1.4.6 Appeal
Appeals are permitted for cases involving a debt larger than 1,750.00 EUR, prompting the case to go to the court of second instance. A second appeal will take the case to the Supreme Court, where the focus will be on the enforcement of statutes rather than the validity of the debt.
1.4.7 Costs
The losing party is liable for all court costs, as well as a fee based on a percentage of the outstanding balance. A complex, tariff-based structure is used to determine other costs throughout the legal process, including any costs incurred by pursuing more complex legal procedures or appeals through the judicial system’s higher courts. Further fee variations arise if a creditor requires the services of an LDC rather than a legal collector. Costs will be estimated on a case-by-case basis.
1.4.8 Expected timeframe
Lawsuits last anywhere from eight months to 18 months, based on the complexity of the case and the availability of the judges and representatives involved. Bankruptcy petitions can take between four and six weeks to be filed and processed.
1.4.9 Interests and costs in the legal phase
All interest charged during amicable and legal collection procedures can be charged to the debtor. The losing party always bears legal costs, however. If a settlement is reached, the costs will be paid by each side in proportion to their financial win or loss in that settlement.
1.5 Enforcement
1.5.1 Enforcement in debt
Only bailiffs are permitted to enforce a judgment against a debtor. Salaries can be seized or garnished, and debtor bank accounts can be blocked. Claims against tax offices can also be blocked. The debtor’s life insurance, business shares, or other claims, can also be seized or garnished.
To seize financial accounts and assets, very specific information is required. Without that information, enforcement can be very difficult or even impossible.
1.5.2 Enforcement in movable goods
A bailiff will visit a debtor and seize any movable goods on the premises that are not directly related to daily life or business activities. Any seized goods will then be liquidated at auction and the resulting proceeds will reduce the amount of the debt owed to the creditor. This method of enforcement is typically used to put pressure on a debtor, rather than to actually seize all of the debtor’s movable goods.
1.5.3 Enforcement in immovable goods
Debtors who own immovable goods, like real estate, can have that real estate seized and offered up for public sale. The proceeds from that sale will reduce or eliminate the amount of debt owed. Proper notification is required beforehand, and debtors who cooperate often avoid such public sales. It should be noted that this process is exceedingly long and expensive. Most creditors prefer not to pursue enforcement in immovable goods.
1.5.4 Expected timeframe
Enforcement is very time consuming, and can take anywhere from three months to three years.
Whatever the debts reason, we will work it, fast.
As debt recovery agency, we’ve seen of the disputes and excuses debtors say when they fail to payback our Clients.
We know how to rreply and negotiate, using the right level of pressure and get you paid quickly.
