Everything about the Debt Collection Services Quality Act (Wki)

Since the introduction of the Debt Collection Quality Act (Wki) in 2024, a number of things have changed for the debt collection industry in the Netherlands. The law is intended to safeguard the quality and reliability of collection agencies and to better protect customers (debtors) against unethical practices.

For collection agencies like incasso.nl and entrepreneurs who want to hand over invoices, this law brings important changes. On this page, we discuss what the Wki entails, what the consequences are for the collection industry, and how entrepreneurs can adapt to this new reality.

What is the Debt Collection Quality Act (Wki)?

The Wki was created to limit the proliferation of debt collection agencies and to increase reliability. Previously, anyone in the Netherlands could start a collection agency without a license. This led to abuses, such as exorbitant costs, aggressive methods, and a lack of transparency. The Wki puts an end to this.

With the introduction of this law, collection agencies face stricter rules, such as:

• Licensing obligation: Only agencies with a government license may offer collection services.
• Transparency requirements: Clear communication about costs and the rights of debtors.
• Supervision and enforcement: The Inspection of Justice and Security is empowered to act against rogue collection agencies.
• Code of conduct: Collection agencies must adhere to strict rules of conduct to prevent abuse.

The most important changes and obligations

The Wki has both direct and indirect consequences for collection practices. These are the most important changes:

License and registration

One of the core aspects of the Wki is the introduction of a registration obligation for collection service providers. From the effective date, all collection agencies must register with the screening authority Justis. They have one year for this, as a transitional arrangement for mandatory registration applies until April 1, 2025. This is an important change, because without this registration, it is no longer permitted to offer or perform extrajudicial collection services. This increases transparency and reliability within the collection industry.

For collection agencies that do not meet the registration requirements, the consequences are significant. From April 1, 2025, non-registered agencies may no longer perform extrajudicial collection activities. This underscores the importance of timely registration and compliance with the new regulations.

Stricter communication regulations

Collection letters must henceforth be clear and correct, and the costs must be communicated transparently and in line with statutory rates. For example, it must be explicitly indicated what a collection letter is about. This prevents unexpected or excessive collection costs for debtors and ensures more clarity in the collection process.

Better protection of debtors

Another important element of the Wki is the strengthened protection of debtors. The law ensures that debtors are not brought into further trouble by unlawful or aggressive collection practices. This means that collection agencies may not pass on excessive costs and must adhere to ethical standards.

Supervision and sanctions

The Inspection of Justice and Security will supervise compliance with the law more strictly. Rogue collection agencies can count on fines and, in serious cases, even a ban on their services. Regular checks make the sector more transparent and reliable for both entrepreneurs and debtors.

Impact on the collection industry

For reputable collection agencies like incasso.nl, the Wki brings both challenges and opportunities.

Advantages:

• The law helps cleanse the industry of unreliable players, which benefits the reputation of competent collection agencies.
• Due to stricter rules, companies will have more confidence in a professional collection trajectory.

Challenges:

• Strict compliance with regulations requires investments in compliance and license applications.
• Communication and administration must meet the new requirements, requiring existing collection tools to be adjusted.

For collection agencies, the Wki therefore represents a professionalization drive. Those who adhere to the rules will benefit from a better reputation and a healthier market. The requirements of the Wki include standards regarding professional knowledge, clarity of the claim, conduct requirements, information provision, and administrative processes. "As a holder of the Collection Quality Mark of the Dutch Association of Collection Companies (NVI), quality has been paramount to us for years," says Arjan Stigter, CEO of Ultimoo Incasso. "Only collection agencies with the quality mark can be said with certainty that processes and services are good and reliable. It is a good thing that this quality now becomes an absolute requirement in the market."

Impact on entrepreneurs

For entrepreneurs who want to have invoices collected, the Wki offers more certainty. The law ensures that they only work with reliable collection agencies and prevents unnecessary extra costs and legal problems.

Advantages:

• Greater guarantee that their outstanding invoices are collected in a fair manner.
• Reduction of unnecessary lawsuits due to better communication between creditor and debtor.
• More clarity about the costs and the rights of all parties.

Important points of attention:

• Check whether the collection agency you work with has a license.
• Ensure that the accounts receivable policy fits well with the new regulations to prevent a mismatch.

Future of the collection industry

The Wki is an important step towards a more balanced and fair collection market. By promoting transparency, fairness, and respect for consumer rights, the law contributes to a healthier financial sector. For consumers, this means a stronger safety net against unjust collection practices. For companies and collection agencies, it offers an opportunity to build trust and maintain long-term relationships with their customers.

Amicable collection saves debtors approximately €500 million in (unnecessary) legal costs annually. As such, amicable collection has major social and economic importance. This vision endorses a fair collection process, as prescribed by the Wki.

Conclusion: A step forward for the collection industry

At incasso.nl, we are a strong proponent of the Wki. "The quality of our services runs like a thread through our organization. We are now registered in the Register for Collection Services. The Wki benefits the quality and image of the collection market and protects people with payment arrears better. This brings a Netherlands without problematic debts a step closer," says Arjan Stigter.

Do you want to know how incasso.nl can help you collect outstanding invoices in a legally correct and effective manner? Then contact one of our collection specialists today. We are happy to discuss your situation without obligation to help you get a grip on unpaid sales invoices.