When is the payment reminder sent, when I send an overdue invoice to the Isolta Debt Collection service? And how about debt collection letter?
Payment reminders are processed to the mailing service in the same evening as it is sent to our service. So the reminder is sent within 1-2 days after you send it to our service.
Debt collection letters are sent with a certain pattern: the date of the reminder sent + payment terms + control perioid. This means that for example in the consumer reminder there is 10 days payment terms + 4 days for control perioid (note the weekends and public holidays). If there is no payment made within that time, the debt collection letter is sent.
What are the late payment fees and penalty interest for the reminders?
In a consumer payment reminding, a creditor can legally claim reasonable debt collection fee. According to the Consumer Act, a reminder fee of 5 € (if an invoice is 14 days overdue) and a default interest in accordance with the Interest Act may be claimed for consumer payment reminder. Currently, according to the Interest Act, the interest rate is 0.0% at the period 07.01.2017 - 31.12.2017. The default interest for the same period is therefore 7,0% per annum under the statutory interest rate (reference rate 0% + interest rate 7% additional interest).
A reminder fee for the companies starts at 8,40 € and goes up to 25,00 €. The amount depends of the capital and other possible special arrangements.
If not specifically agreed upon trade between companies, the creditor has the right based on commercial contracts to demand legal interest from the debtor from the due date. A legitimate interest in trade between the businesses of the reference rate of the European Central Bank (ECB), plus 8 percentage units. At present, the statutory default interest rate for commercial agreements in commercial transactions is 8% (reference rate 0% + interest rate on the 8% interest rate).
What are the expenses / fees in the debt collection letters for my customers?
In a consumer debt collection, the fees are regulated by the law. You can find the table of the fees here.
In a companies debt collection, the fees vary case by case. The affecting factors are the amount of work done for the collection, amount of the capital. So there is no fixed price list for those fees. If you want to know an estimate of the fees, please contact our partner customer service.
How can I cancel the reminder or debt collection service and what it costs for me?
You can cancel the assignment by contacting our partner customer service.
Note that if you cancel the assignment after there has been activites regarding the debt collection or the assignment unfounded, our partner may charge the debt collection fees from you.
What if my client pays the invoice to me with the original sum (without late payment fees etc) even I have sent the overdue invoice to the Isolta Debt Collection service?
First of all you should contact our partner customer service and let them know about the payment. Next steps in the process are decided case by case.
Scenario 1 - Your client pays the invoice late to you and you cancel the debt collection assignment
You inform our partner about the payment as well as the date of the payment. If there are activities carried out regarding the debt collection, our partner may continue the debt collection for the fees and you will be invoiced only the compulsory VAT which you can reduce in your taxes.
Scenario 2 - Your client pays the invoice directly to you in order to avoid debt collection fees. After that you cancel the assignment
If you cancel the assignment and there is an assumption of the exploitation of the service for free, our partner may charge the fees from you.
Will there be juridical debt collection automatically?
No, our partner will contact you before the start of the juridical debt collection.
What is the difference between Isolta Debt Collection service and Isolta Payment Control service?
With Isolta Debt Collection service you can choose which invoices to send to the Debt Collection and which you will handle yourself.
With Isolta Payment Control all of your sent invoices payment reminders and debt collection will be handled by our partners.
Any further questions?
We are happy to give additional information about Debt Collection service, as well as other financial management related information. Contact us via Chat at the bottom right corner or send us a message via our contact form.