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How to Instruct Us
We simply require the following details:
Full name & address of the debtor
All available contact details of the debtor i.e. contact name(s) / Tel / Mobile / Email(s)
Amount owed (Invoice(s) or Statement will help)
Or ask us to call you – just leave us your details:
Case Study - EUR 9,000 recovered from German Debtor
Initiation of Case
A leading UK Manufacturer in Manchester and developer of metallic products was struggling to recover monies due from a German debtor (near Frankfurt). Despite numerous attempts and promises the German debtor never paid the outstanding debt. At this point the client instructed us to recover monies due on our No Win No fee services.
Debt Collection Process
Once instructed our expert debt collector sent an initial debt collection letter to the debtor stating the amount owed and a deadline to pay. As there was no known disputes or reasons for non payment the debtor settled the debt in full within 10 days of instruction.
Summary
The client was, naturally, overwhelmed by the speed and success of our services has recommended us to various other companies with similar problems.
Germany Debt Collection – No Win No Fee
Creditreform operates a global specialist International debt collections service. We have local offices and fully approved expert international debt collection agency partners in every country worldwide. Our International debt collection agency partners and offices operate on a No Win No Fee basis. They only charge a commission on recovered funds.
Local debt recovery agencies are better than UK debt collection agencies for recovering debts. They are important for faster and more effective debt recovery.
The local International Debt collection Partners know:
The local cultures
The languages
The laws
Are in the same time zones
Herewith details of our debt collection service Germany:
Pre-trial debt collection is definitely our forte. We often resolve cases without a lawyer because each German Debt Collection case is unique and needs expertise.
Each case is treated individually and according to its merits. This means getting more details about your customer's finances, which we have in our business database. Our database has 4.9 million entries and is the largest for German companies in the world.
This database helps us determine if your debtor is able to pay their debts. This way, you can avoid wasting money on someone who cannot pay. Our research also considers all entries in district courts’ debtor registers, published insolvencies and ongoing Germany debt recollection processes.
We have a wealth of information and well-trained staff, so we are immensely successful without needing to go to court.
Before collecting debts in Germany, we will assess the debtor's financial situation. This will help us determine if it is beneficial for our client.
If legal actions have a realistic chance of success, and the German debts are undisputed, we’ll initiate judicial enforcement and compulsory execution upon the debtor’s assets, and advise you throughout all proceedings in a German debt collection process. Many debtors capitulate and pay up when they find the compulsory execution order in the mail.
If this step is unsuccessful, judicial German debt collection proceeds to execution (i.e. seizure) by a bailiff. If this attempt is also unsuccessful, we will obtain an affidavit.
We will keep you updated on the progress and outcomes of the legal process to recover German debts. In keeping with your instructions, we can also continue monitoring your judicially recognized claim with Creditreform’s Monitoring services. In that case, our Judgment Monitoring service will keep an eye on your debtor for up to 30 years.
Number of debt recovery offices in Germany?
Creditreform has 129 local offices in Germany.
Number of debt collection staff?
Creditreform has over 3,500 employees in Germany.
How long have you been operating a debt recovery service in Germany?
We have been offering a debt collection service in Germany since 1879, with no fees unless we win. Our debt collection agency list includes Germany.
What type of debt collection services do you provide? Do you do commercial debt recovery (B2B) and consumer debt recovery (B2C)?
We handle both Business to Business debt recovery cases and Business to Consumer debt collections cases. Debt collection letters have different templates for businesses and consumers.
Statue of Limitation in Germany?
3 years (regular period)
Following please find the relevant sections of German Civil Code
Section 195 - Standard limitation period
The standard limitation period is three years.
Speciality:
Section 199 explains when the standard limitation period starts. It typically starts at the end of the year in which the event occurred, unless a different start date is specified.
1. The claim arose and
2. The person who is owed money discovers the reason for the debt and identifies the debtor. They would have known this information if they had been more attentive.
In Germany, the civil litigation statute of limitations sets a time limit for a plaintiff to sue a defendant. The statute of limitations in Germany is 3 years. If someone acts within the time limit, they will extend the statute of limitations.
After the specified time period ends, no legal action can be taken unless the plaintiff can prove exceptional circumstances. Other Statute of Limitations include:
Germany Open Account Years – 3 years
Germany Promissory Notes – 3 years
Germany Written Contracts – 3 years
Germany Oral Agreements – 3 years
How EU (European Union) laws effect debt collection in Germany?
Germany joined the EU in 1958, started using the Euro in 1999, and joined the Schengen area in 1995.
How many companies registries in Germany for businesses?
Local courts keep approximately 120 decentralised structure business registries.
Germany has one central company registry called the German Commercial Register, located at Amtsgericht Hagen, Servicestelle Registerportal, Heinitzstr. 42, 58097 Hagen (Germany).
We have access to Germany Company Registry searches to determine further background information on all Germany companies.
Average length of time to collect a debt?
The average time taken to recover a Germany B2B debt collection case varies from case to case. For prejudicial cases the average is 60 to 90 days.
Can late payment fees / interest to be added to claims?
Yes, according to the following sections of German Civil Code: 280, 286, 288
Recovering international debts in different countries, like Germany, has specific requirements. Using international debt collection agencies for these cases instead of UK debt collectors is important.
Creditreform has a unique international debt collection method. They do not only use UK debt collectors like their competitors. Many competitors rely solely on UK debt collectors.
Creditreform does not. We work with local offices and partners to increase our success rate. Our No Win No Fee service and competitive commission rates mean you receive the best service.
Germany Business Credit Reports
Creditreform offers 200 million international business credit reports and 5 million German credit reports in their database. You can have free access to our online databases and obtain a German business credit report instantly. Before trading, you can check if the company can fulfill their promise. You can also check after the debt is late to make sure the debtor can pay what they owe.
Germany Skip Tracing Agents
Creditreform's debt collection service uses local Skip tracing agents in Germany to find debtors who have disappeared. This debtor tracing service operates on a No Find No Fee basis, only charging for a successful trace.
Specialist Debt Recovery Experts
Recovering international debts in countries like Germany has specific requirements different from the UK. Having expert international debt collection agencies handle these cases instead of UK debt collectors is crucial.
Creditreform uses a unique international debt collection approach, unlike competitors who only use UK debt collectors to collect debts. We work with local offices and partners to increase our success rate. Our No Win No Fee service and competitive commission rates mean you receive the best service.
European Payment Order in Germany
Germany has a Payment Order Process. The rules outline a process to get payment for uncontested money claims through an order for payment procedure. Sections 688 et seq. of the Code of Civil Procedure (Zivilprozessordnung) govern this.
No upper limits exist for claims under this procedure, and it is optional.
The German order for payment procedure may also be used if the defendant is resident in another Member State or in a third country. However, it should be noted that Section 688(3) of the German Code of Civil Procedure provides that in cases where the order for payment would have to be served abroad the order for payment procedure can be used only if this is provided for in the Act on the Recognition and Enforcement of Judgments (Anerkennungs- und Vollstreckungsausführungsgesetz).
Only the local court can handle the order for payment procedure for the plaintiff. However, many German federal states have established central courts for payment order cases (Mahngerichte). In general the local courts only have jurisdiction up to €5 000.
What language should the application be made in Germany?
All claims must be in writing in German language. You can also submit them by fax or electronic documentation.
What Courts are used in Germany?
Three main courts systems exist:
1. Local courts (Amtsgerichte) are the first courts for civil cases with claims typically up to €5,000. A single judge hears these.
2. Regional courts (Landgerichte) are the first courts to handle civil cases that local courts cannot. These are usually disputes where the value of the claim is more than €5 000.
A single judge generally hears cases before regional courts. For difficult or important cases, a panel of three professional judges will make the decision.
Regional courts of second instance deal with appeals against rulings on civil matters by local courts. A chamber usually made up of three judges hears appeals.
3. Higher regional courts (Oberlandesgerichte) are usually courts of second instance. In civil cases, they rule on appeals against judgments by regional courts and by local courts in family matters.
Three professional judges usually make up the divisions (Senate) of higher regional courts. One judge can also resolve simple civil cases without major issues.
The highest court in Germany is the Federal Court of Justice. It only deals with appeals on points of law and is the final court of appeal. Five professional judges make up the divisions of the Federal Court of Justice.
Mediation (Alternative Dispute Resolution - ADR) in Germany
Many organisations provide mediation services in Germany, including the following larger ones:
Federal Association for Family Mediation (Bundes-Arbeitsgemeinschaft für Familien-Mediation e.V. (BAFM): Spichernstrasse 11, 10777 Berlin, Germany)
Federal Association for Mediation (Bundesverband Mediation e.V. (BM): Wittestrasse 30K, 13509 Berlin, Germany)
Federal Association for Economic and Professional Mediation (Bundesverband Mediation in Wirtschaft und Arbeitswelt e.V. (BMWA): Prinzregentenstrasse 1, 86150 Augsburg, Germany)
Centre for Mediation (Centrale für Mediation GmbH & Co.KG (CfM): Gustav-Heinemann-Ufer 58, 50968 Cologne, Germany)
German Lawyers’ Association (Arbeitsgemeinschaft Mediation im Deutschen Anwaltverein, Littenstrasse 11, 10179 Berlin, Germany)
Mediation in International Child Conflicts (Mediation bei internationalen Kindschaftskonflikten e.V. (MiKK): Fasanenstrasse 12, 10623 Berlin, Germany)
The Mediation Act (Mediationsgesetz) entered into force in Germany on 26 July 2012. This was the first piece of legislation to formally regulate mediation services in Germany. The Act encourages resolving disputes together by offering various incentives in official procedural codes like the Code of Civil Procedure.
Mediation is not free of charge; payment is subject to agreement between the mediator and the parties concerned. We understand that hourly fees may range approximately from EUR 80 to EUR 250.
A lawyer or a notary can help declare a mediation agreement enforceable in principle.
Can Statutory Interest Rate be added in Germany?
Section 246 of the German Civil Code (Bürgerliches Gesetzbuch, BGB) stipulates the statutory interest rate. If you owe money and have to pay interest, you usually pay a rate of four percent per year, unless specified otherwise.
Germany Debt Collection Offices in the following German Cities
What is the legal system in Germany?
The Germany legal system follows Germanic civil law. The Bürgerliches Gesetzbuch of 1900 ("BGB"). Both Roman and German law traditions influence the BGB.
What is the name of the Government Gazette in Germany?
In Germany, they call the Gazettes the Bundesgesetzblatt (Federal Law Gazette) and Bundesanzeiger (Federal Gazette).
Which countries border Germany?
Germany borders more countries than any other country in Europe. This includes Denmark to the north, Netherlands, Belgium, Luxembourg, and France to the west, Switzerland and Austria to the south, and the Czech Republic and Poland to the east.
Who are the main trading partners for Germany?
The major export & import markets for Germany are USA, France, China, Netherlands, United Kingdom and Poland.
What is the Supreme Court in Germany?
Germany calls its Supreme Courts:
Constitutional Court - Bundesverfassungsgericht (BVerfG)
Federal Court of Justice - Bundesgerichtshof, BGH
Federal Administrative Court - Bundesverwaltungsgericht
Federal Finance Court - Bundesfinanzhof
Federal Labour Court - Bundesarbeitsgericht
Federal Social Court - Bundessozialgericht
Germany Debt Collection Agency FAQs
1. How does a Debt collection agency in Germany recover overdue debts?
The debt collection process is initiated by an introductory letter to your debtor stating the amount owed to you and informing them of our involvement. Letters are then followed up with emails and telephone calls. From our experience the most effective part of this process will be the outsourcing to a third party debt collection agency in Germany as the debtor now has to resolve the debt and can no longer hide or provide lame excuses.
2. How long does the debt recovery agency in Germany take to process a case?
The debt collection case will be processed immediately up receipt and a letter sent normally by email and post. You will receive an automated confirmation by return.
3. What is the success rate for debt collection agencies in Germany?
The success rate of the debt recovery case depends on a number of factors including the solvency of the debtor and whether the case has a legitimate dispute. Our aim is to recover every debt that is recoverable.
4. Does the debt recovery agency in Germany operate a No Win No Fee debt collection?
We take on all debt collection cases on No Win No Fee basis only charging the agreed commission against monies recovered.
5. Why use a local debt recovery agency in Germany?
The reasons for using a local Germany debt collection agency than processing from a different country is the debt collector in Germany speaks the local language, knows the local laws and operates in the same time zones.
6. Are there any debts too old or too small for Germany debt collection?
We will assess all debt cases, irrelevant of age and size and then advise the best processes to recover these through the Germany debt collector.
7. How do I instruct the debt collectors in Germany?
Instructing the debt collectors Germany is a simple process. You just email details of the debt, debtor and amount to be recovered and the case can be initiated.
8. What evidence do I need to provide when instructing the Germany debt collector?
When instructing the debt collector in Germany just provide copies of invoices/statements, debtor contact details and any relevant information you may have to assist with the recovery process.
9. Who does the debtor pay?
In general the debt collector in Germany will request payments to be sent directly to the client but if not possible for any reasons will take payment directly. If payment is taken then cleared funds will be processed and sent to client straight away.
10. Can I instruct multiple cases?
You can send unlimited debt case instructions. Our systems will automate volume cases to meet your requirements.
11. Can you trace debtors in Germany?
Through our network of skip tracing agents we have an extremely high success rate of locating your absconded debtor.
12. How long does the debt collection process take?
On average the debt collections process takes 90 days to resolve an amicable debt recovery case. There are a number of factors that can delay this process but we will keep you informed every step of the way.
13. What are my options if debt collection in Germany is not successful?
If the debt recovery service is not successful we will advise you of your options including legal actions. Please note no legal actions or other processes will be taken without prior instruction from you.