Collection fees or collection costs: What is the right term?

Generally, we often – and incorrectly – use the term “collection fees” when talking about debt collection. However, legally, this is not correct. Therefore, we prefer to use the term “collection costs” in our letters and on the website. This is because there is no legal fee schedule for collection companies. Paigo calculates its compensation like most collection companies, i.e. based on the fees which are laid down for lawyers in the German Law on the Remuneration of Lawyers (RVG) and in the list of applicable fees. So, debt collection does not involve fees in the legal sense of the word, and this is why we prefer the term collection costs.

Do you have questions regarding the topic of collection costs? We have summarised the answers to the most important questions for you under “Collection costs at Paigo” in the Paigo FAQ.