Many private individuals and entrepreneurs who receive a letter from a collection agency or bailiff are especially shocked by the extra costs that are imposed. In addition to the principal amount, there are often substantial amounts in collection costs, interest and administrative costs. But did you know that you are not always required to pay all of these costs?

In this article, we explain what collection costs are, which amounts are permitted by law, and how you can defend yourself against unjustifiably high costs.

What are collection costs?

Collection costs are the costs a creditor charges for collecting an outstanding debt. These costs are added on top of the original claim.

Examples:

• A telecom company sends you a bill for € 100.

• You do not pay on time.

• € 40 in collection costs and interest is charged.

👉 But the law sets clear limits on the maximum that may be charged.

How much in collection costs is allowed?

For individuals, the statutory collection costs (Act on Standardisation of Extrajudicial Collection Costs, WIK):

• 15% on the first € 2.500 of the claim.

• 10% on the next € 2.500.

• 5% on the next € 5.000.

• 1% on the next € 190.000.

• With a maximum of € 6.775.

👉 Additionally, a minimum of € 40 in collection costs for consumers.

Common mistakes by collection agencies and creditors

• Excessive percentages charged on top of the debt.

• Double fees being charged (for example, administrative fees and collection fees).

• Charging fees on a claim that has already been (partially) paid.

• No 14-day letter send to consumers before collection fees are imposed.

How can you contest unjustifiably high collection fees?

1. Check whether you have received a 14-day letter
   For consumers, the creditor must first send a letter giving you another 14 days to pay free of charge. Without such a letter, collection fees are not valid.

2. Compare the costs with the statutory scale
   Calculate whether the collection fees charged are higher than allowed.

3. File an objection
   Send a letter or email explaining that the fees are incorrect and that you will only pay the statutory fees.

4. Present a defense in court
   Are you being summoned to court? Then a lawyer can present a defense on your behalf and ask the judge to reduce or cancel the costs.

Examples from practice

• Example 1 (energy bill): A consumer was charged €300 in collection costs for a bill of €400. This was successfully reduced to the statutory maximum of €70.

• Example 2 (online shop): A customer was wrongly charged double administrative fees and collection fees. The judge fully rejected the extra costs.

• Example 3 (rent arrears): A tenant disputed the collection costs because a 14-day letter had never been sent. The judge removed all collection costs.

Checklist: check collection costs

• 📄 Have you received a 14-day letter (consumers)?

• 📑 Does the percentage match the statutory scale?

• 💶 Have no duplicate costs been charged?

• ⏳ Was the debt not partially paid (yet costs were still charged on it)?

• ⚖️ Consult a lawyer in the event of a summons or unjustifiably high amounts.

Frequently Asked Questions (FAQ)

1. Do I always have to pay collection costs?
No, only if you do not pay on time after the 14-day letter.

2. What if I have partially paid the debt?
Collection costs may only be charged on the outstanding amount.

3. May a collection agency charge administrative fees in addition to collection costs?
No, double charges are not allowed.

4. What if I haven’t received a 14-day letter?
Then debt collection fees for consumers are invalid.

5. Can I get a refund of debt collection fees I already paid?
Yes, with legal defense you can sometimes reclaim unjustly paid fees.

Why Arslan Advocaten?

• Specialized in defense against unjustifiably high debt collection fees

• Experienced in negotiating with creditors and collection agencies

• Regularly obtain rulings in which debt collection fees are reduced or scrapped

• Helping private individuals and business owners maintain control of their financial situation

Conclusion

Debt collection fees are legally capped. However, many debt collection agencies charge more than is allowed. So never just pay; always check whether the fees are correct and dispute them if they are not.