Collection Costs Act (WIK).

On March 13, 2012, the much-discussed law standardizing extrajudicial collection costs was passed. The purpose of the law is to protect consumers from unreasonably high collection costs. Bailiffs are pleased with the clarity this has created that will put an end to the unjustified and high collection fees charged by collection agencies.

WIK Sample Letters

• Compliance letter WIK Bosveld ex VAT
• Compliance letter WIK Bosved incl VAT

What does the law entail?

The maximum fee is set for claims from agreement to pay a sum of money. The compensation for collection costs is calculated as a percentage of the amount due, with the percentage decreasing in stages as the claim increases. Collection costs are due after 14 days have passed since the reminder or demand letter. So you must first send, without charge, a reminder or demand letter with a payment deadline of 14 days. The court no longer has a right to moderate collection costs. So when litigating for unpaid collection costs, you no longer run the risk of this being rejected. The fixed scale of collection costs is calculated using percentages over the principal sum. The minimum amount of collection costs is € 40.00 excluding VAT. All other costs, such as administration costs, are no longer permitted. For claims between companies, different agreements can be made among themselves regarding the amount of collection costs. If the claim involves more than one demand letter, the principal amounts of these claims must be added up and collection costs may only be charged on this basis.

Table of collection costs

What does the law mean to you?

If you only do business with companies, the new law does not apply. You can mutually agree on the amount of collection costs. For example, you can include this in the agreement or in your general terms and conditions. Of course, the collection costs must be reasonable and fair. We therefore advise you to follow the scale of collection fees for consumers also for claims from companies. Before you or your collection partner may charge collection costs, a ‘compliance letter’ should be sent in which the debtor is given another 14 days to pay the debt. In this letter you should mention the consequences of non-payment, including the amount of the collection costs. It is also important to critically examine your General Terms and Conditions. As of July 1, 2012, it is no longer possible to charge administrative or other costs, regardless of what is stated in the General Terms and Conditions. From then on, only collection costs can be charged in accordance with the new Collection Costs Act. You will therefore need to amend the General Terms and Conditions. We will be happy to inform and advise you about the Collection Costs Act. We have summarized everything about this law for you in a comprehensive handout. We have also prepared a sample ‘compliance letter’ for you that you can use as a basis for your own reminder letters.