Debt collection

What to do if you receive a debt collection (Inkasso) letter in Germany?

Step 1: stay calm. Debt collection agencies are NOT authorities. They have no special rights – they are ordinary companies collecting money for a creditor.

Step 2: check the claim.

• Is the original claim justified? (Did you really order/buy something?)
• Is it time-barred? (Standard: 3 years from the end of the year)
• Are the collection costs reasonable? (Often heavily inflated)

Step 3: respond.

• Claim justified? → Pay the ORIGINAL claim + statutory interest. Not the inflated collection fees.
• Claim unjustified? → Object in writing. Templates are available from the consumer advice centre (Verbraucherzentrale).

Caution: threats of a Schufa entry, bailiffs or prison are often intimidation. Debt collection companies may NOT seize anything – only a court can order that.