FAQs about debt recovery

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Do I have to pay the debt collection notice costs?

The creditor has the right to receive compensation from you for certain normal costs related to the debt collection. What these costs are is regulated in legislation. The legislation's rules are mandatory, i.e. the creditor cannot, with an agreement, increase your obligation to pay compensation.

For you to be liable for compensation for debt collection costs the action has to have been necessary in order to exercise the creditor's rights.

The size of the compensation is decided by the government and adjusted from time to time. The current levels are

·         Written payment reminder - maximum SEK 60

·         Debt collection notice - maximum SEK 180

·         Repayment plan - maximum SEK 170

Note: The law only regulates the obligation to pay for actions that have been taken after the debt has lapsed. Therefore costs for invoicing, notifications and reminders which were issued before the expiry date can occur. You may also be liable for certain costs that occur with regards to applications to the Swedish Enforcement Authority or to the court.

Source: Swedish Data Protection Authority (Datainspektionen)

What interest do I have to pay?

If you do not pay your debt within the set time the result can be that an interest on late payments is debited.

If the creditor and the debtor have come to an agreement regarding rent beforehand then this agreement is valid. In such a case it usually states that interest on late payments should be paid from the due date at a certain percent, e.g. per month.

If no agreement has been reached beforehand the Interest Act applies. The creditor then has the right to take interest on late payment from the day that falls 30 days after he has sent out the bill, or in some other way has requested payment of the debtor, and in this request stated that interest on late payments must be paid. The Interest Act gives the creditor the right to demand an annual interest equivalent of the Riksbank's fixed reference rate plus eight percent.

For more information about the reference rate visit the Riksbank's website.

Source: Swedish Data Protection Authority (Datainspektionen)

What happens if I receive a debt collection notice?

If the creditor has not been paid for their claim he can choose either to collect it himself or to hand over the collection to a debt collection agency. The creditor or debt collection agency then sends a debt collection notice (demand letter) to you with a summons to pay or "submit objections" to the demand (explain why you do not consider yourself liable to pay).

If, despite the debt collection notice, you do not pay the debt the creditor or debt collection agency can appeal to the Swedish Enforcement Agency to rule, partly that you are liable for payment, and partly what amount you should pay. This usually occurs when the creditor applies for an injunction for payment. The Swedish Enforcement Agency will then, in most cases, execute its decision (ruling) of its own accord by implementing a repossession from you. This can mean that there are only a few days between the Swedish Enforcement Agency determining that you are liable to pay and it executing this by implementing a repossession from you.

If the debt is not paid because the creditor and the debtor disagree about how large the debt is, the debtor can instead appeal to the court to have the dispute settled in a trial. This kind of judgement can then also be executed by the Swedish Enforcement Agency through repossession.

For every action taken and for each stage that is engaged your costs can increase. If you know that a claim is correct, it is best for you to pay it in time. If you cannot pay the whole amount at once then it can be wise to contact the debt collection agency and try to reach an agreement about a repayment plan. However there is no obligation for the creditor to agree to any such plan.

Source: Swedish Data Protection Authority (Datainspektionen)

Do I have to pay costs even if I have paid the debt?

Sometimes a debtor is required to pay compensation although he has paid his debt. Despite the main debt being paid a creditor can demand compensation for debt collection costs or administration costs from the Swedish Enforcement Agency or court.

The Swedish Data Protection Authority considers that compensation can be sought in the following cases:

Rents receivable

The creditor has sent a debt collection notice or applied to the Swedish Enforcement Agency or court at the latest on the same day on which the rent was paid (i.e. the day the payment order came into the post or bank giro account or the rent was paid by post or bank account).

Other claims

The guarantor has sent a debt collection notice or applied to the Swedish Enforcement Agency or court at the latest on the same day on which the payment was accounted for in the receiver's post of bank giro account.

Note

If you pay a debt via post or bank giro account you should remember that the payment is only considered complete once it is accounted for in the post or bank giro account. If you know that a payment is late, it can be wise to inform the creditor or his representative about the payment. In this way you may avoid a debt collection notice or an application to the Swedish Enforcement Authority or court.

Also remember to save all receipts of the payments you make!

Source: Swedish Data Protection Authority (Datainspektionen)

When is Gothia permitted to contact me?

In accordance with good debt collection practice Gothia can contact you verbally with regards to a debt when the payment deadline for the debt collection notice has expired. The same applies when a, so-called, promissory note is sent out.

The debt collection agency can contact you verbally during the daytime and during the evening up until 9 pm. At Gothia, we work Monday to Thursday 8 am - 9 pm and on Friday 8 am - 5 pm. The day before public holidays we also close at 5 pm.

Will I appear in a credit reference register if I have received a debt collection notice?

In order to assess whether a person or a company should be given a loan or any other credit, the agency that is to provide credit needs to know if the person who wants to borrow has managed their previous financial affairs well. Therefore some information is recorded in the credit reference registers of individual companies. Those who have not managed their economic activities well risk appearing in this kind of register.

Record of non-payments for individuals can only be made if the default on payment is approved by a court or other authority, usually the Swedish Enforcement Authority. A debt collection notice on its own does not lead to a record of non-payment.

Information about records of non-payment should be removed at the latest three years after the day the record is created. The record of non-payment is not removed earlier even if you pay off your debt.

Source: Swedish Data Protection Authority (Datainspektionen)

What do I do if I would like to arrange a repayment plan with Gothia Inkasso?

Contact Gothia by telephone, post or using the contact form at the side here. If you have received a debt collection notice from us your customer number is at the top right hand corner of the letter. So that we can put you in contact with your case officer quickly, it would make it easier if you quote your customer number when you contact us.

Our opening hours are Monday to Thursday 8 am - 9 pm, Friday 8 am - 5 pm and the day before public holidays 8 am - 5 pm. We can be contacted by telephone on 0046 (0) 340-66 44 40.

Our address is:

Gothia Inkasso
Box 1143
SE-432 15 VARBERG

What should I do if I want to pay a debt to Gothia?

Contact Gothia by telephone, post or fill in the form on the Contact page and we will call you. If you have received a debt collection notice from us your customer number is at the top right hand corner of the letter. So that we can put you in contact with your case officer quickly, it would make it easier if you quote your customer number when you contact us.

Our opening hours are Monday to Thursday 8 am - 9 pm, Friday 8 am - 5 pm and the day before public holidays 8 am - 5 pm. We can be contacted by telephone on 0046 (0) 340-66 44 40.

Our address is:

Gothia Inkasso
Box 1143
SE-432 15 VARBERG