Collection agency Germany: collecting your invoice from German debtors

What makes debt collection in Germany different from the Netherlands?

Debt collection in Germany differs from Dutch practice on five fundamental points. Anyone unaware of these differences risks time-barred claims, legally worthless reminders, and missed opportunities for quick collection.

1. Significantly shorter limitation period
   Business invoices in Germany become time-barred after 3 years pursuant to § 195 of the Bürgerliches Gesetzbuch (BGB), compared to 5 years in the Netherlands. Furthermore, the limitation period does not begin on the due date itself, but at the end of the calendar year in which the claim arose (§ 199 BGB). Dutch entrepreneurs who wait too long lose claims in Germany more often than they realize.
   
   
2. Automatic default for business invoices
   According to § 286 paragraph 3 BGB, a German business debtor is automatically in default (Verzug) 30 days after receipt of the invoice, even without a reminder. In the Netherlands, a formal notice of default or an expired due date is generally required. This significantly accelerates the possibility of taking legal action.
   
   
3. Mandatory registration
   A debt collection agency (Inkassobüro) may only perform amicable collection in Germany if it is registered in the Rechtsdienstleistungsregister pursuant to § 10 of the Rechtsdienstleistungsgesetz (RDG). Without registration, the service is unlawful.
   
   
4. The Mahnverfahren
   Germany has a unique automated procedure, the Mahnverfahren, which leads to an enforceable title within a few weeks for undisputed claims. This procedure does not exist in this form in the Netherlands.
   
   
5. Formal and strictly legal business culture
   The German business culture requires precision, formal language (using "Sie"), and legally correct phrasing. Reminders that are too informal or too commercial are taken far less seriously than in the Dutch market.

Comparison table Netherlands versus Germany:

What you need to know about German debt collection legislation 

Bürgerliches Gesetzbuch (BGB)

A business client is automatically in default 30 days after receipt of the invoice. For consumers, the thirty-day period only applies if this has been explicitly pointed out. For both: an earlier formal notice accelerates the default.

§ 288 BGB - Verzugszinsen (default interest) 
In business transactions, the default interest rate is the German base rate plus 9 percentage points. For consumers, it is the base rate plus 5 percentage points. The current base rate is published semi-annually by the Deutsche Bundesbank.

§ 288 paragraph 5 BGB - Verzugspauschale 
In the event of a business payment arrears, the creditor is entitled to a lump sum of €40, on top of the default interest and any actual costs. This is the German implementation of the EU directive.

§ 195 and § 199 BGB - Limitation 
The general limitation period (Regelverjährung) is 3 years. The period starts at the end of the calendar year in which the claim arose and the creditor became aware of the debtor's identity.

Example: an invoice from March 2024 will only become time-barred on December 31, 2027, not on the due date itself.

Rechtsdienstleistungsgesetz (RDG) and registration

Since 2008, the Rechtsdienstleistungsgesetz determines who is allowed to provide debt collection services in Germany.

The main rules:

• Registration requirement: every German debt collection agency must be registered in the Rechtsdienstleistungsregister pursuant to § 10 RDG.
• Supervision is exercised by the competent Oberlandesgericht (OLG) of the federal state where the agency is established.
• Public register: the registration is publicly available on rechtsdienstleistungsregister.de.
• More complex cases: for legal proceedings above €5,000 and for in-depth legal advice, a Rechtsanwalt (lawyer) is mandatory.

Incasso.nl works exclusively with registered German partners and with Rechtsanwälte for the judicial phase. For you as a client, this is an essential check: an unregistered agency operates unlawfully and any reminders issued can be legally challenged.

Limitation periods in Germany

The short German limitation period is often the biggest pitfall for Dutch entrepreneurs. The standard periods:

• Business and private invoices: 3 years pursuant to § 195 BGB.
• Special claims (for example, damages from breach of contract): up to 10 years according to § 199 paragraph 4 BGB.
• Claims relating to real estate: 30 years (§ 196 BGB).

The limitation period can be interrupted by, among other things, a specific reminder, legal proceedings, or an acknowledgment of debt by the debtor. For German files, we actively monitor the limitation date and propose the right interruption actions in time.

How debt collection in Germany works step by step

Amicable collection (extrajudicial)

The amicable phase (außergerichtliches Verfahren) is intended to secure payment without legal proceedings. The majority of German files are resolved in this phase.

• Case intake and analysis. You submit your invoice via the Incasso.nl app. We check the details of the German debtor and the limitation status.
• Business Mahnung (payment reminder) in correct legal German. Sent via registered mail (Einschreiben) and email, with reference to § 286 BGB.
• Default interest and Verzugspauschale: for business debtors, we charge the statutory default interest and the lump sum of €40.
• Telephone contact by our German-speaking specialist. Personal follow-up is often decisive in Germany.
• Ratenzahlungsvereinbarung (payment arrangement) where appropriate.
• Payment or escalation decision. If payment is not forthcoming, we will advise on the Mahnverfahren or a regular procedure.

The Mahnverfahren (The German express route)

The Mahnverfahren is a unique German automated procedure that is highly efficient for undisputed claims. The procedure works as follows:

1. Antrag auf Erlass eines Mahnbescheids: application for the issuance of a dunning notice. For Dutch creditors, this is handled centrally via the Amtsgericht Wedding in Berlin.
2. Mahnbescheid: the court sends an official dunning notice to the debtor.
3. Widerspruchsfrist of 2 weeks: the debtor can file an objection within two weeks.
4. If no objection is filed: application for Vollstreckungsbescheid (enforcement order).
5. Execution: with the Vollstreckungsbescheid, a Gerichtsvollzieher (bailiff) can seize assets, wages, or bank accounts.
6. If an objection is filed: transfer to regular proceedings at the competent court.

Lead time for an undisputed Mahnverfahren: typically 6 to 10 weeks from submission to Vollstreckungsbescheid. Costs are limited and based on the principal amount.

Legal proceedings

In case of dispute or more complex matters, a regular procedure follows:

• Amtsgericht: competent for claims up to €5,000, without mandatory legal representation.
• Landgericht: competent for claims over €5,000, with Anwaltszwang (mandatory legal representation).
• Jurisdiction: usually the customer's location, unless your general terms and conditions contain a different choice of forum.
• Lead time: 6 to 18 months, depending on complexity and the court's workload.

What does a debt collection process in Germany cost?

For international debt collection cases, we always work with a fixed amount per file. The amount of this fee varies by country group and is intended to cover the more intensive handling of a debt collection file abroad. More information about the file fee can be found in the Incasso.nl app.

Separate, legally established court fees and attorney fees apply to the Mahnverfahren and the regular legal procedure. Our specialist will always discuss these with you in advance.

Frequently asked questions about debt collection in Germany

Below you will find the answers to a number of frequently asked questions about debt collection in Germany.

When can I engage a debt collection agency in Germany?

For business debtors, you may engage a debt collection agency immediately after the payment term has expired. According to § 286 paragraph 3 BGB, your German business client is automatically in default 30 days after receipt of the invoice, even without a reminder. For consumers, a formal reminder (Mahnung) is generally required before default occurs.

Must a debt collection agency in Germany be certified?

Yes. According to § 10 Rechtsdienstleistungsgesetz (RDG), every Inkassobüro must be registered in the Rechtsdienstleistungsregister. Supervision is exercised by the Oberlandesgericht of the relevant federal state. No amicable collection may be carried out without registration.

What does a debt collection process in Germany cost?

At Incasso.nl, you pay a fixed amount in file fees for all international debt collection processes. This amount covers the costs of collecting your claim in Germany. In addition, you pay a certain percentage in commission on the collected amounts. This is clearly communicated to you in advance. If successful, the costs (default interest, €40 lump sum, and RVG fees) are recovered from the debtor as much as possible. A legal phase or Mahnverfahren has separate rates that are discussed in advance.

In what language must my reminder be?

Exclusively in correct German. German debtors and courts do not accept reminders in Dutch or English. Automatic translations are taken less seriously and also undermine your legal position in the event of proceedings.

What is the difference between debt collection in the Netherlands and Germany?

The most important differences: significantly shorter limitation period in Germany (3 years versus 5 years), automatic default for business invoices after 30 days (§ 286 paragraph 3 BGB), mandatory registration via RDG, more formal business culture, and the unique Mahnverfahren procedure that does not exist in the Netherlands.

What is the Mahnverfahren?

The Mahnverfahren is an automated German legal procedure for undisputed claims. For foreign creditors, the procedure is handled centrally via the Amtsgericht Wedding in Berlin. With an undisputed Mahnverfahren, you will have a Vollstreckungsbescheid within 6 to 10 weeks. This is an enforceable title with which a bailiff can seize assets. The procedure is fast, relatively inexpensive, and highly effective for undisputed files.

How long does a debt collection procedure in Germany take?

The amicable trajectory takes an average of 2 to 6 weeks. The Mahnverfahren takes 6 to 10 weeks for undisputed claims. A regular legal procedure varies from 6 months for simple cases to 18 months or more for complex or disputed cases.

What is a Vollstreckungsbescheid?

A Vollstreckungsbescheid is the enforcement order that follows a successfully completed Mahnverfahren, without timely objection from the debtor. With this title, a Gerichtsvollzieher (bailiff) can immediately seize assets, wages, or bank accounts of the debtor.

Can I also collect my German claim via a Dutch court?

Only if your general terms and conditions contain an explicit choice of forum for the Dutch court and the debtor has accepted those terms. Without a choice of forum, the Brussels I bis Regulation applies: the court of the debtor's country is generally competent. We advise you to include choice-of-forum clauses as standard in your general terms and conditions if you have clients abroad.

What about the short German limitation period?

The general limitation period in Germany is 3 years (§ 195 BGB). The period begins at the end of the calendar year in which the claim arose (§ 199 BGB). An invoice from March 2024 therefore only becomes time-barred on December 31, 2027.

However, you should be careful here: many Dutch entrepreneurs discover too late that a claim is about to become time-barred. At Incasso.nl, we check the limitation status for every German case and initiate interruption actions in time.

Does Incasso.nl work throughout Germany? 

Yes. From Nordrhein-Westfalen on the Dutch border to Bavaria in the south and Hamburg in the north. Our German partners have national coverage and know the local courts and customs.