Engaging a debt collection agency involves five steps: first, send a reminder yourself, then a formal demand with a 14-day deadline (mandatory for consumers), next, choose a reputable debt collection agency, submit the documents, and — if the out-of-court route fails — proceed to legal proceedings. Sounds straightforward. In practice, however, step one is often postponed for far too long simply because you don't feel like dealing with it.
Piet the plasterer — our local entrepreneur — once had a client of €9,000 who didn't pay. Three months of emailing, two reminders, one phone call to which he said nothing in return. When he finally called a collection agency, 80% of the case had just been resolved by taking clear steps on time. Don't hope for it to resolve itself. In this article: the step-by-step plan, when to do it, what it costs, and what you absolutely must not do.
The short answer: hiring a collection agency in 5 steps
- Send a payment reminder. Friendly, in writing, with a new deadline of 14 days. No collection fees, no drama.
- Send a formal demand letter (the “14-day letter”). For consumers, this is mandatory before you may charge collection costs — you must state the amount owed, the deadline, and the collection costs that would otherwise follow.
- Engage a debt collection agency. Submit the agreement, invoice(s), and correspondence. The agency sends a formal demand letter, makes phone calls, and handles the matter out of court.
- the debtor still does not pay, a summons can be issued through a lawyer — the judicial phase.
- the proceedings are won, a bailiff comes into play for execution: seizure, sale, and enforcement measures.
For details regarding the procedure, see the collection procedure and, for the out-of-court part, the out-of-court collection process.
Step 1: start friendly — the reminder
An unpaid invoice is rarely the result of malicious intent. More often, it is carelessness, an overworked administrator, or a client setting the bar too high for themselves. In practice, a first reminder—friendly, in writing, with a new deadline—resolves the vast majority of cases.
What it contains: the invoice number, the amount, the original due date, a new payment term (often 14 days), and a polite tone. Be careful with “payment by return” — that is not a legal term and gives your debtor grounds for discussion. Also read the payment reminder as a first step.
Step 2: the reminder (14-day letter)
Is your customer not responding? Then you send a formal demand letter. For consumers, this is not optional: Article 6:96, paragraph 6 of the Dutch Civil Code stipulates that you must send a formal demand letter with a minimum payment period of 14 days and state which collection costs the consumer owes if they do not pay within that period. Without that letter, you may not pass on collection costs later.
You can find the detailed rules in the Debt Collection Costs Act (WIK) and in our article on charging debt collection costs. For business clients, this 14-day period is not mandatory, but it is good practice to provide a reasonable period.
Step 3: Hire a debt collection agency
Has your debtor still not paid? Then it is time to take decisive action. A collection agency takes over the process: demand letter, telephone contact, a payment arrangement if necessary, and the legal pressure to pay.
What are you submitting?
- The original invoice and any order confirmation.
- Your general terms and conditions (if you claim contractual interest or collection costs).
- Your reminder and demand for payment, plus all correspondence.
- The debtor's name and address details.
- A brief description of what happened and when.
How well a debt collection agency does this varies. For quality and points to consider, see how to choose a good debt collection agency.
Step 4: Taking the matter to court
If the debtor still fails to pay after out-of-court collection, your claim can be brought before the court via a lawyer and a summons. For cases up to €25,000, this is the sub-district court; above that, the district court. A court judgment is your means of enforcement — with it, a bailiff can seize assets, sell a home, or execute a wage garnishment.
The step from out-of-court to judicial proceedings is not a formality. It involves court fees, potential legal fees, and processing time. However, with a genuine defaulter, it is sometimes the only route. More on the judicial debt collection process.
Step 5: Execution via the bailiff
A court bailiff is the party with the legal powers to enforce a judgment. Attachment of bank accounts, wage garnishment, executory attachment of assets, and sometimes attachment of real estate. A collection agency does not have those powers — for that, you need a bailiff. We explain the difference in collection agency or bailiff.
How much does it cost to hire a debt collection agency?
Three models you encounter on the market:
- No cure, no pay. You only pay upon success — often 10 to 20 percent of the amount collected.
- Passing on WIK. You pass on the statutory collection costs to your debtor; in the event of full payment, it costs you nothing.
- Fixed rate or subscription. For entrepreneurs with many debtors.
The full explanation with figures can be found in what does a debt collection agency cost. For the legal framework: the Decree on the Reimbursement of Extrajudicial Collection Costs.
When do you switch on (and when do you wait a little longer)?
Rule of thumb: as soon as your second written reminder is ignored and the agreed time limit for the demand has expired. Do not wait longer than a month after the first due date — the older the claim, the harder it is to collect.
Specifically for consumers: ensure the 14-day notice has been sent first; otherwise, you may not charge collection costs. There is no mandatory protocol for business clients, but one to two reminders plus a demand letter is good practice. Read more in when to engage a collection agency.
What you absolutely must not do
- Sending angry emails or making threats on social media. Unprofessional and legally risky — defamation and privacy violations cost you more than the bill.
- Keep trying indefinitely on your own. The older the claim, the lower the chance of payment. Engage a professional for the second half of the process.
- Destroying the relationship without a real reason. For a good customer with temporary problems, a payment arrangement often works better than legal proceedings.
Honest recommendation
Engaging a debt collection agency works best if you have first followed your own procedure correctly: a clear invoice, two reminders, and — for consumers — a proper 14-day notice. Only then is a debt collection agency the logical next step. If the out-of-court process is unsuccessful, the legal route with a lawyer is the next step.
Explore the options for initiating debt collection through MKB Juristen or, if you are unsure whether the steps are in order, request a brief legal check first. An hour with a lawyer often prevents a lawsuit worth thousands of euros.
Frequently Asked Questions
In five steps: first send a reminder, then a formal notice with a 14-day deadline (mandatory for consumers), choose a collection agency, submit the documents, and — if that does not help — proceed to legal proceedings via a lawyer. The bailiff only becomes involved for the execution of a judgment.
As soon as your second reminder is ignored and the dunning period has expired. Do not wait longer than a month after the due date; the older the claim, the more difficult it is to collect. For consumers, the 14-day letter must be sent first.
Three models are common: no cure no pay (10–20% commission on the collected amount), passing on statutory collection costs to the debtor, or a fixed rate/subscription. If the debtor pays in full, collection is often free of charge for the creditor.
A debt collection agency operates extrajudicially — formal demands, telephone calls, payment arrangements. A court bailiff has statutory powers to execute a judgment: seizing assets, execution sale. You always need a bailiff to carry out enforcement measures.
For consumers, yes: Article 6:96 paragraph 6 of the Dutch Civil Code prescribes a formal demand with a 14-day notice period, stating the collection costs due. Without this letter, you may not pass on collection costs. For business customers, it is not mandatory, but it is good practice.
The original invoice, your general terms and conditions, the order confirmation (if applicable), the previous reminder and demand letter, the debtor's name and address details, and a brief description of the facts. The more complete the file, the faster and more effective the collection.
Yes, provided it is factually correct. A formal notice may indicate a possible summons or seizure. Misleading or intimidating statements are not permitted — this is governed by the industry code of conduct and, in the case of bailiffs, by disciplinary law.
