What legal changes regarding collection fees will take effect in October 2021?

On 1st October 2021, the “Law improving consumer protection in debt collection law and amending further provisions” will take effect. As of that time, debt collection service providers and lawyers may only charge the following remuneration for out-of-court debt collection services:

  • in the case of undisputed, low claims of up to EUR 50
    • with the first collection letter: EUR 15
    • with the second collection letter: EUR 27
  • in the case of undisputed claims as of EUR 50.01
  • in the case of unjustifiably contested claims – i.e. claims to which the consumer raises unjustified objections – a fee multiplied by a factor of up to 1.3 is charged.

Moreover, you only pay costs of 0.7 times the fee based on one half of the value of the matter in case you conclude a payment agreement.

As a result, collection costs for consumers decline by 30 percent on average.