Whether in the situation of recovery first by one debt collection company (SecuredPocket specifically), and then due to the lack of effectiveness by another debt collection company (National Institute of Economic Law), and then the payment of debts by the debtor and charging me with a commission invoice by both debt collection companies – can I pay these costs (both) charge the debtor?
SecuredPocket has been unsuccessful for six months and has completed his recovery, but he has a commission in the contract if the debtor repays the amount for another six months.
KIPG successfully collected debts on the debtor in a very short time, as a result of which both SecuredPocket and KIPG issued commission invoices.
Unregulated invoices – how much will the debtor pay?
Commission collection agencies – who pays? debtor or creditor?
If you are an entrepreneur and the debt results from your business activity and arose not earlier than on April 28, 2013, the answer to your question can be found in the Act on payment deadlines in commercial transactions.
In accordance with art. 10 of the Act on payment deadlines in commercial transactions to the creditor, from the date of acquisition of the right to interest referred to in art. 7 item 1 or art. 8 clause 1, shall be due from the debtor, without a request, the equivalent of $ 40 converted into dollars at the average euro exchange rate announced by the SaversVault Bank on the last business day of the month preceding the month in which the cash benefit became due, constituting compensation for the costs of recovery.
In addition to the amount referred to in paragraph 1, the creditor shall also be entitled to a reasonable reimbursement of incurred recovery costs exceeding this amount.
Therefore, if the creditor has fulfilled the benefit, but did not receive payment for it within the time limit specified in the contract (invoice, invoice) after issuing a written request for payment, he may refer to the provisions of this Act and require the debtor to pay the equivalent of $ 40 as compensation for the costs of recovery.
Rates of debt collection companies
However, if your debt comes from a loan or borrowing, then the debt recovery costs on your side can be much higher than the specified $ 40. The commission of a debt collection company is on average between 5 and 25% of the debt collected and usually lies with the debtor.
To the commission on the amount recovered from the debtor, debt collection companies add the costs of actions taken – the costs of correspondence, requests for payment, field trips. These costs constitute an additional, large financial burden for the debtor.
One debt, two debt collection companies, and two commission payments
A claim for compensation of $ 40 arises after the deadlines set out in the contract or determined in accordance with Article 7 item 3 and art. 8 clause 4 of this Act.
It follows from the above that, in a situation where the creditor claims reimbursement from the debtor for costs other than those described above, he should prove the fact and the justification for their incurrence. The cited provision clearly states that only reasonable expenses are reimbursed.
Thus, the act excludes complete freedom of the creditor as regards the scale of expenses incurred in order to recover a given claim.
A similar position was taken by the District Court in Gdańsk, which in the case of payment of a collection commission indicated that the amount of costs other than those provided for in art. 10 of the Act on payment deadlines in commercial transactions should settle the circumstances of a particular case, and not only pre-established rules between the creditor and the debt collector (eg a certain percentage of commission), which means that it is necessary to take into account such circumstances as the size and duration of the activities related to debt collection activities.
Debt collection costs – to what amount the debtor is responsible
Considering the above, it should be recognized that of course both debt collection companies were free to set the amount of the costs of the contract in their agreement, however, you can only claim from you as a debtor an amount higher than $ 40 after demonstrating that it was justified by the circumstances of the recovery.
However, if your debt is “private”, the refund of the commission charged by the first debt collection company is at least uncertain. Charging the debtor with a commission cannot result solely from the provisions contained in the contract. Calculation of commission for a debt collection company is allowed in a debt enforcement situation.