Cumulative scheme for collection costs: What you need to know as an entrepreneur

Since October 1, 2024, the cumulative regulation for collection costs has been in effect, an important component of the Debt Collection Quality Act (Wki). This regulation is specifically designed to make collection costs fairer and more transparent, especially in situations where debtors miss multiple installment payments. What does this mean for you as an entrepreneur? In this blog, we explain it clearly and practically.

Note! Exceptions exist, and specific rules may apply to your situation. If in doubt, you can always contact one of our specialists.

What is the cumulative regulation for collection costs?

The cumulative regulation establishes rules for calculating collection costs for overdue installment payments of up to €266.67 within a period of six months. The goal is to prevent costs from becoming unnecessarily high due to stacking.

How does it work?

• For the first missed installment, the customary collection costs may be charged, with a minimum of €40.
  
  
• For every subsequent missed installment within the same six-month period, the collection costs are halved, to a maximum of €20 per installment. Note! You must send a Wik letter for every individual installment.
  
  
• For outstanding amounts above €266.67, the standard scales for collection costs apply.
  This means your administration must be well-organized so you can apply the regulation correctly.

Why was the cumulative regulation introduced?

The regulation is intended to prevent debtors from being confronted with disproportionately high costs for relatively small debts. By lowering the costs step by step, a balance is maintained between reasonableness and the incentive to pay outstanding bills quickly. For you as an entrepreneur, the cumulative regulation offers transparency and ensures your debtors are more willing to meet their obligations.

How are collection costs calculated?

Collection costs are calculated based on a percentage of the outstanding amount, subject to statutory minimums and scales. If, for example, you have a claim of €200, the minimum rate is €40. For higher amounts, costs increase according to a fixed percentage.

Do you want to know exactly how collection costs are calculated? View our extensive explanation regarding collection costs.

What does the cumulative regulation mean for you as an entrepreneur?

It is important that you, as an entrepreneur, understand and apply these new rules in your own accounts receivable process. This avoids unnecessary legal risks and ensures you approach your debtors correctly. Do you not work with installment payments, or are your installments higher than €266.67? Then the cumulative regulation generally does not apply to you.

Here are some practical steps:

1. Keep your administration in order
   Ensure you accurately track which payments have been missed and when. This helps you determine which collection costs may be charged. Especially if you work with subscriptions and other periodically recurring installment amounts.
   
   
2. Apply the rules correctly
   Check for every new claim whether the cumulative regulation applies. This is especially important for clients who pay in installments. Note! Do not forget the Wik for every individual installment!
   
   
3. Communicate clearly with your debtors
   Clear communication prevents misunderstandings and strengthens the chance of quick payment. A friendly payment reminder can often prevent many problems. If you are in doubt about your own accounts receivable process, you can always discuss it with one of the specialists at incasso.nl.

A practical example: How does the cumulative regulation work in practice?

Let's look at a concrete example:

A debtor misses four installments of €120 in the following months:

In total, the collection costs amount to €100. Without the cumulative regulation, these costs could have risen to €160 (4 x €40).

Has the debtor missed an installment that is higher than €266.67? Then the collection costs are calculated based on a percentage of the amount due, as prescribed by law.

What are the advantages of the cumulative regulation?

The cumulative regulation brings advantages for both entrepreneurs and debtors:

Advantages for entrepreneurs

• More transparency
  You remain within the legal frameworks and prevent legal disputes.
  
  
• Faster payments
  Debtors are more willing to pay if costs are clear and reasonable.

Advantages for debtors

• Lower costs
  The regulation prevents costs from running out of proportion.
  
  
• More clarity
  Debtors know exactly where they stand.

Frequently asked questions about the cumulative regulation

Below are several frequently asked questions that may be important to you as an entrepreneur.

Does the cumulative regulation apply to all payments?

No, the regulation only applies to installment payments of up to €266.67 within a period of six months. For higher amounts, the standard rules for collection costs continue to apply. Do you not work with installments? Then the rules of the cumulative regulation do not apply to you.

What if a debtor does not pay at all?

If a debtor structurally fails to pay, you can transfer the invoices to your collection partner. They will then collect the invoices for you.

Conclusion

The cumulative regulation for collection costs is an important change that you as an entrepreneur must understand. By correctly applying these rules, you not only avoid legal problems but also improve the relationship with your debtors. Transparency and reasonableness are central here.

Do you have questions about how you can implement the cumulative regulation in your company? Please feel free to contact one of the specialists at incasso.nl. We are happy to think along with you and offer practical solutions that fit your situation.