Rules for collection services as of 1 April

News item | 09-02-2024 | 14:30

Debt collection service providers must meet quality requirements and register as of 1 April 2024. With these requirements and the registration requirement under the Collection Services Quality Act, the profession is regulated for the first time in the Netherlands. This means that people with debts are better protected and creditors know better what collection service providers can do for them. The law should also lead to fewer unprofessional practices and limit the stacking of collection costs. At the suggestion of Minister Weerwind for Legal Protection, the Council of Ministers has agreed to underlying regulations so that the law can enter into force.

Minister Weerwind: “It's not for nothing that we call debt collection services services: abuses and unfair treatment are not among them. With these requirements, both a creditor and a debtor can count on quality and clarity when dealing with debts and claims. This way, everyone can trust the work of debt collection service providers.”

Quality requirements

The quality requirements apply to all parties that are commercially involved in collecting extrajudicial collections on behalf of third parties from consumers living in the Netherlands. Even if the claim has been resold to someone else, these quality requirements apply. Service providers must register in a register that is accessible to everyone. Their work is subject to quality requirements in the areas of professional competence, dealing with creditors and debtors, providing information and handling complaints. The law also includes a provision to limit the accumulation of collection costs for recurring claims. The collection costs may amount to a maximum of €140 per six months if the monthly claim or instalment amount is less than €266.67. The limitation on collection costs will take effect from 1 October 2024.

Supervision and registration

Existing debt collection service providers must register within one year after April 1, 2024. Debt collection service providers who start their services after April 1 must register immediately. Screening Authority Justis will manage the register for debt collection service providers and screen extrajudicial collection agencies. The Justice and Security Inspectorate will monitor the quality requirements and registration requirements and can enforce if collection service providers do not comply with the rules.