Having drawn from the expertise of Atradius Collections' local offices, the International Debt Collections Handbook explains the different regulations and procedures for debt collections in Denmark.
Atradius Collections maintains a professional collection process, focusing on the relationships between our clients and their debtors at all times. Our team of collection specialists carry out the collection process in-house, contacting debtors both verbally and in writing whilst adhering to all appropriate laws and legal requirements. When there is a dispute, we aim to reach an amicable solution between the creditor and the debtor. We do this by analysing all contractual documents (e.g. signed contracts, orders, confirmations, invoices and delivery notes, as well as standard terms previously agreed upon). All investigations are completed with the assistance and agreement of our legal team.
Atradius Collections always charges interest to debtors, according to the Act of Consolidated Law on Interest on Overdue Payment 743 of 4th September 2002.
There are two alternatives:
- To calculate the interest rate as agreed between the creditor and the debtor
- T o calculate the interest rate according to Danish regulations, based on the reference rate fixed by the National Bank of Denmark (plus 8% per year). This rate is fixed twice a year on 1st January and 1st July.
The second alternative will always occur if the interest rate is not agreed between the creditor and the debtor.
From a cultural point of view, Danish debtors are used to paying late payment interest fees.
Debt collection costs
In Denmark, debt collection costs are chargeable to debtors, representing the creditor’s claim for late payment based on the Act of Consolidated Law Extrajudicial Collection Costs 601 of 12th July 2002. From a cultural point of view, Danish debtors are used to paying debt collection costs. Atradius Collections either passes all recovered debt collection costs to our client to reduces their claim or adds them to the success fees, depending on the contractual agreement between the client and Atradius Collections.
The Debt Collections Handbook presents a snapshot of Denmark's economic situation and covers the following topics:
- Accepted and most common payment methods
- Types of companies
- Legal procedures
- Enforcement in debt, movable and immovable property
- Insolvency proceedings
To read more about steps and procedures undertaken in debt collections in Denmark: