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Costs can mount rapidly during debt collection proceedings: in one case, a debt of around 1,000 euros grew to over 3,000 euros due to collection costs, interest, legal fees, service costs, and additional fees — partly because the creditor was allowed to collect each invoice separately. Protect yourself against defaulters with favorable terms, timely reminders, and collateral, and consider a payment arrangement in case of genuine payment difficulties.
If invoices remain unpaid, the creditor seeks an enforceable judgment through collection proceedings. Costs then mount up rapidly — a case in which the debt tripled demonstrates this (ECLI:NL:RBLIM:2021:4460).
How the costs increase
A patient had a crown and bridge fitted, consisting of two invoices totaling approximately 1,000 euros, and failed to pay — he was suffering from burnout and had reduced income. By default judgment, he was ordered to pay the first invoice (598.55 euros), including 80 euros in collection costs and interest, plus 705.85 euros in court costs. After service of process, an additional 60 euros in supplementary fees and 80.24 euros in bailiff's fees were added. This was repeated for the second invoice. Thus, a debt of around 1,000 euros quickly became 3,052.10 euros.
The judge often has no choice
It is remarkable that the judge acknowledged that this feels unjust, but explained that he is merely applying the rules. A formal demand is sufficient to claim collection costs, only an (expensive) bailiff is permitted to legally serve a summons or judgment, and a creditor is allowed to collect each claim separately — he is not required to consolidate them to save costs. It would have been kinder to bundle the claims, but this is not mandatory. And it would be unfair if the creditor, rather than the defaulter, were left with those costs.
Protect yourself against defaulters
Precisely because the consequences are significant, it is best to protect yourself in advance:
- record payment agreements in writing in sound general terms and conditions;
- send payment reminders in a timely and regular manner;
- In the event of non-payment, make arrangements for new deliveries, preferably for prepayment;
- Consider securities such as retention of title, a bank guarantee, or a suretyship.
Sometimes a payment arrangement is better
You do not have to go to court immediately for every default — the collection agency in this case did. If genuine financial problems are at the root of the issue, incurring extra costs solves little. An installment agreement or payment arrangement might be a better option: you agree on the number of installments and amounts to be paid, possibly including interest or a fee.
Frequently Asked Questions
Is a creditor allowed to collect each invoice separately?
Yes. He is not obliged to bundle claims, even though that saves costs. As a result, the total costs can increase significantly.
How do I avoid high collection costs?
By agreeing on favorable terms, timely reminders, prepayment, or security, and reaching an arrangement in the event of payment problems instead of immediately resorting to litigation.
What is a payment arrangement?
An agreement between creditor and debtor regarding payment in installments, specifying the installment amounts and any interest or compensation. This prevents further escalating costs.
Arrange protection against defaulters
The legal experts at MKB Juristen draft strong terms and conditions and, if necessary, a payment arrangement, and assist with debt collection. View our expertise in contract law or schedule an intake meeting .
