Debt Collection Agencies in Germany

Debt collection agencies in Germany can help during certain recovery procedures. Below, you can find a comparison between the services provided by our lawyers and those of such entities.

Quick Facts
Licensing requirement	Registration with the Federal Office of Justice (Bundesamt für Justiz) under the Legal Services Act (Rechtsdienstleistungsgesetz – RDG)
Types of debt collected	– Consumer debts; – Commercial debts; – Unpaid invoices.
Legal framework	Civil Code (Bürgerliches Gesetzbuch – BGB), Insolvency Code (Insolvenzordnung – InsO)
Data protection compliance	Regulated by the Federal Data Protection Act (Bundesdatenschutzgesetz – BDSG)
Prohibited practices	– Harassment; – False representation; – Unauthorized charges.
Communication channels	Letters, emails, phone calls, in-person visits
Debt collection timeline	Varies based on case complexity and debtor cooperation
Interest and fees	Limited by law, subject to agreement between agency and client
Debtor rights	Right to dispute the debt, right to verification of the debt
Legal actions	– Legal proceedings; – Asset seizure; – Garnishment.
Foreign debt collection	Possible, subject to international agreements and regulations
Debt collection methods	– Negotiation; – Mediation; – Litigation.
Debtor notification requirements	Notice of debt verification, notice of legal actions
Debt collection agencies association	Bundesverband Deutscher Inkasso-Unternehmen e.V. (BDIU)
Language proficiency	Multilingual staff available for international cases, contact our debt collection agents in Germany for their services.

Do debt collection agencies in Germany operate legally? How do I check such an agency?

Yes, debt collection agencies are legal in Germany. If you want to make sure you choose an appropriate company, it must be registered under the RDG and listed in the public legal services register (Rechtsdienstleistungsregister).

What are the types of debts chased through a collection agency in Germany?

Debt collection agencies in Germany are required to resolve various cases. Among the most common debt collection cases in Germany are those related to:

commercial contracts which can be business-to-business (B2B) or business-to-customer (B2C) contracts;
unpaid bills can also be collected by German debt collection agencies, at the request of providers;
debts of a German citizen or company arising in a foreign country can be collected in Germany with the help of a debt collection agency;
German debt collection agencies can also help local companies seeking to recover debts from a foreign client or business partner;
other types of debts, such as unpaid amounts of money resulting from contracts with banks, can be recovered by debt collection agencies in Germany.

The main types of debt collection cases in Germany, however, result from commercial contracts. These are also cases in which our debt collection lawyers can assist.

When can I use the services of a debt recovery agency in Germany?

You can use the services of such an agency during the first stages of a debt recovery procedure. This is also known as the extra-judicial phase.

Can I use a German debt collection agency in a commercial dispute?

In such cases, a debt collection agency has limited tools, as, beyond out-of-court collection, it can only conduct the court dunning procedure and certain enforcement steps, not represent you in contested litigation; it can, however, send the documentation you will later be able to use in a court of law. Also, commercial debt recovery procedures are more complex, in which case the services of our German collection lawyers are more useful.

When is it recommended to talk to a debt collection lawyer in Germany?

You can do that at any time. However, the services of a specialized lawyer become essential during court proceedings. In such cases, even a debt collection agency must use specialized representation.

Can I use the services of a debt collection agency in an international case?

In such cases, too, the services of a German debt collection lawyer can be more useful, as he or she is acquainted with the legislation and will know how to apply it for a successful outcome, especially when it comes to a European Payment Order. At the same time, a lawyer can also tell you from the start whether you have a case or not.

Do debt collection agencies in Germany work with lawyers?

Some of them do, while others will only hire people to handle the notification phase in a debt collection procedure.

For complete information on how debt collection agencies in Germany can help you recover a debt, do not hesitate to contact our lawyers who also specialize in offering debt recovery solutions.