A customer doesn't pay on time and you want to pass on the costs of the collection process. Understandable, but charging collection costs is subject to strict legal rules. In this article you will learn exactly when you may charge collection costs, how much they can be and which steps you must take first.
Requirements for collection costs
Before you may charge collection costs, a number of conditions must be met. The most important ones are:
- The invoice is overdue: the agreed payment term has expired and the customer is in default.
- You have sent a WIK letter (for consumers): for private customers you are legally required to first send a 14-day letter in accordance with the Dutch Debt Collection Costs Act. Read more about the difference between a reminder and a WIK letter.
- The payment term from the WIK letter has expired: the debtor has had at least 14 days after receipt of the WIK letter to pay, and has failed to do so.
Only when all of these conditions have been met may you charge collection costs. Skipping any of these steps can result in a judge rejecting the collection costs.
The WIK letter as a requirement
The Dutch Debt Collection Costs Act (WIK) stipulates that for claims against consumers you must first send a so-called 14-day letter. In this letter you must:
- Give the debtor at least 14 days to pay, counted from the day after receipt of the letter.
- State the exact amount of collection costs that will be owed if payment is not made on time.
- Use the correct wording: the Dutch Supreme Court has set clear requirements for the text of the 14-day letter.
If you do not send a WIK letter, or if the letter contains errors, the collection costs are not owed. It is therefore advisable to use a proven format. At wikbriefversturen.nl you automatically generate a legally correct WIK letter based on your invoice details.
Amount of collection costs (BIK scale)
The maximum collection costs are calculated according to the scale from the Decree on Compensation for Extrajudicial Collection Costs (BIK). The scale uses tiers based on the principal amount:
| Principal amount | Percentage |
|---|---|
| First € 2,500 | 15% |
| Next € 2,500 | 10% |
| Next € 5,000 | 5% |
| Next € 190,000 | 1% |
| Remainder | 0.5% |
The minimum amount of collection costs is always € 40.00. This applies even if the calculated percentage results in a lower amount. The maximum amount is € 6,775.00. Also read our article about collection costs and VAT. Use our collection costs calculator to calculate the exact amount for your situation.
Consumer vs business client
The rules differ significantly depending on whether your debtor is a consumer or a business client:
- Consumer: the WIK letter is mandatory. The BIK scale determines the maximum collection costs. You may not charge more than the scale allows.
- Business client: the WIK letter is not legally required, but is recommended. Collection costs may be contractually agreed upon in your general terms and conditions. Without a contractual agreement, the BIK scale serves as a reasonable benchmark.
Please note: even for business clients, a judge can moderate unreasonably high collection costs. It is advisable to use the BIK scale as a starting point for business relationships as well.
Common mistakes
In practice, things regularly go wrong when charging collection costs. These are the most common mistakes:
- No WIK letter sent: the most common mistake. Without a WIK letter, the collection costs for a consumer are not owed.
- Incorrect payment term: the 14 days must start the day after receipt, not from the date of the letter. A wording such as "within 14 days of the date of this letter" is incorrect.
- Wrong amount stated: if the stated amount of collection costs does not match the BIK scale, the entire claim may be rejected.
- Increasing collection costs with each reminder: you may only charge collection costs once per claim, not cumulatively with each reminder.
Conclusion
Charging collection costs is allowed, but only if you follow the correct steps. Always send a correct WIK letter first for consumers, apply the BIK scale and state the exact amount. This way you prevent your collection costs from being rejected by a judge. At wikbriefversturen.nl we ensure that your WIK letter automatically meets all legal requirements. In addition to collection costs, you can also claim statutory interest. Are you unsure whether to collect yourself? Read our article on collection agency or self-collection.