Hiring a debt collection agency as a private individual: is that possible and how?

As a private individual, you may engage a debt collection agency for an unpaid debt — a loan to an ex-partner, overdue alimony, a bill for an unfinished renovation, or money a friend hasn't returned for two years. The difference compared to business debt collection lies not in the legal basis, but in the burden of proof: ensure you have something in writing before taking further action.

However, not all claims are suitable for a collection agency. In cases of disputes, sensitive private situations, or complex families, a legal expert or lawyer is the more logical choice. Below is how it works, what it costs, and when you are better off choosing a different route.

The short answer

Yes, a private individual may engage a debt collection agency. The agency performs the same procedures as with business debt collection: a formal demand letter, telephone contact, a payment arrangement if necessary, and referral to a lawyer for legal proceedings in the event of non-payment. What is different is that statutory collection costs also apply here (the debtor pays provided the rules are met), but the supporting documents are often less readily available than in a business case.

What do you need?

A debt collection agency wants to see proof that your claim is valid. For private individuals, this means:

• A written agreement — a private contract, an email, a WhatsApp conversation — stating the amount and the payment arrangement. Oral agreements can be valid but are difficult to prove.
• Proof of transfer. Bank statements, payment receipts, cash register receipts.
• A formal notice with a 14-day deadline. Private-to-private transactions are usually B2C — the 14-day letter is mandatory before you may charge collection costs.
• Contact details of the other party. Full name, date of birth, address, optionally telephone number or email.

Don't you have this? Then a conversation with a lawyer is the first step, not a collection agency. A file without evidence is an expensive lesson.

Which advances are typically suitable?

• Borrowed money that is not repaid — provided it is recorded in writing.
• Arrears in (child) support — often via a specific route (LBIO or lawyer), not always a regular collection agency.
• Sale of private goods that have not been paid for.
• Unfinished work by a contractor for which you expect something in return — note: disputed claims are tricky.
• Damage caused by third parties with clear liability and evidence.

The question is always: can you prove the claim, is it undisputed, and is the opposing party traceable?

When is it better to use a legal expert or a lawyer?

Private-to-private debt collection involves more emotional situations than business debt collection. Ask yourself whether a debt collection agency is the right party in these cases:

• Family disputes or divorce. Claiming money back after a contentious relationship is rarely a clean slate — often part of a broader dispute. A legal expert or family lawyer makes more sense.
• Disputed claims. Does your counterparty say “that was a gift” or “I have already paid”? An out-of-court process is not for that — settle the dispute first.
• Damages resulting from an accident or injury. In this case, a personal injury lawyer or firm is the right path, not a standard debt collection agency.
• Alimony. The LBIO (National Bureau for the Collection of Maintenance Contributions) collects arrears in alimony free of charge for the recipient. Often cheaper and more effective than a commercial agency.

How much does debt collection cost for private individuals?

The same system as for business debt collection. Three models:

• No cure, no pay. Commission 10–20% on the amount collected. No success, no costs (except for administrative conditions).
• Pass on WIK to the debtor. The statutory scale (min. €40, max. €6,775). In the event of full collection, it costs you nothing.
• Fixed rate. For specific cases, often involving complex private matters.

For a full explanation of costs, see what does a debt collection agency cost. Applying the WIK scale to private individuals works the same as for consumer claims by companies.

The 14-day letter for private individual-to-private individuals

Sales or services from a private individual to a private individual are in principle B2C — the statutory formal notice with a 14-day period pursuant to Article 6:96 paragraph 6 of the Dutch Civil Code is therefore also mandatory here before you may charge collection costs. What it states:

• The amount due, with invoice or proof of the agreement.
• A period of at least 14 days to still make the payment.
• Mention of the collection costs due if payment is not made within that period.
• Sent by registered mail or email with confirmation of receipt, for evidentiary purposes.

A collection agency or lawyer can help you with a template for a proper demand letter. Do not skip this step — doing so will cost you the right to reimbursement of collection costs later.

When to initiate legal proceedings (without a collection agency)?

For clear, undisputed claims up to €25,000, you can also go to the sub-district court yourself—or via a legal expert. Furthermore, for claims up to €5,000, there is the simplified procedure in which a lawyer is not mandatory. This is not ideal for every case (it involves court fees and takes time), but for unreachable debtors, it is sometimes more efficient than first attempting an out-of-court settlement. A legal expert can advise on the most appropriate route.

Honest recommendation

For private individuals with a clear, documented, and undisputed claim, a collection agency works well — especially on a no cure no pay basis. For family matters, alimony, personal injury, or disputed claims, a legal expert or lawyer is the first stop. Unsure which category your case falls into? A brief legal check is usually much cheaper than pursuing the wrong course of action.

For the comprehensive guide: engage a debt collection agency. To proceed immediately: start debt collection with MKB Juristen.

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