Information for recipients of a payment demand
Get in touch – before unnecessary costs are added.
Ignoring a reminder or a letter from us does not make an outstanding claim disappear. On the contrary: every day without a response can add further interest and collection costs under German law. This page explains, plainly, what happens next – and how to avoid unnecessary extra costs.
Early contact avoids costs – instalment plans are generally possible
What happens if you don't respond
The German debt collection process: every stage without a response costs more
A debt collection agency is not a court and cannot enforce anything – it can only ask you to pay. But the longer a legitimate claim goes unanswered, the more additional, usually avoidable costs are added. The overview below shows the typical process under German law.
Invoice and due date
A service was provided and invoiced. As long as payment is made within the deadline, no additional costs arise at all – this is always the cheapest point to act.
Default (Zahlungsverzug)
If the due date passes without payment, default sets in – for consumers usually 30 days after the due date and receipt of the invoice, provided the invoice says so. From here, default interest can start to accrue.
§ 286, § 288 BGB (German Civil Code) – default and default interestPayment reminder (Mahnung)
A reminder is sent. Responding now – paying, or agreeing on an instalment plan – usually prevents every further cost stage.
Referral to a debt collection agency
If a reminder goes unanswered, the claim is often passed to a collection agency. This usually adds collection costs on top of the original claim, borne by the debtor – provided the claim is legitimate and the costs are reasonable.
Court dunning procedure and payment order (Mahnbescheid)
If there is still no response, the claim can be pursued through the German court dunning procedure – adding court costs. An objection is still possible within two weeks and remains an exit point.
§ 688 ff. ZPO (Code of Civil Procedure) – dunning procedureEnforcement order (Vollstreckungsbescheid)
Without an objection, the claim becomes legally enforceable: it is now legally secured and enforceable for up to 30 years – including all costs accrued so far.
§ 699 ZPO – enforcement orderEnforcement (Zwangsvollstreckung)
The final and most expensive stage: account or asset seizure, or a statement of assets, often accompanied by a negative Schufa entry that can affect creditworthiness for years. Fully avoidable through timely contact.
§ 802a ZPO – statement of assets and seizureTake action yourself
How to avoid a debt collection case in the first place
The most effective way to avoid extra costs is simple: pay invoices on time. That isn't always possible – the points below help in practice.
Keep an eye on deadlines
Open invoices promptly and note payment deadlines, so a reminder never has to be sent in the first place.
Get in touch early if money is tight
If you can foresee that you won't be able to pay on time, contact the creditor before the due date and agree on an instalment plan or extension – this is generally possible.
Make sure you can be reached
Let the creditor know about address or account changes, so reminders and payment demands don't go unanswered and trigger unnecessary extra costs.
Check the invoice – don't just set it aside
Only pay what was actually agreed. Raise discrepancies in writing rather than ignoring an invoice – not responding is, in almost every case, the most expensive option.
Legal context
If the claim is legitimate, there is an obligation to pay
Signing a contract or accepting a service creates a legal obligation – regardless of whether the invoice still comes directly from your contract partner or is already being pursued by us. A contract does not disappear because reminders are ignored. If a legitimate claim remains unpaid, costs increase noticeably and further steps may follow.
So the rule is: once it's established that a claim is legitimate, prompt payment or a binding instalment agreement is almost always the cheapest and least stressful option. Every further delay mainly drives costs up.
Before you pay
Check whether the debt collection claim is legitimate
A payment obligation doesn't mean paying every claim without checking it first. Many collection claims are open to challenge in amount: a debtor generally only has to reimburse costs a lawyer could also charge – excessive fees, expenses or interest can often be reduced.
Request the contract documents
If you doubt a contract was ever concluded, request proof from us or from the original creditor.
Get an independent check
The free collection check from the Verbraucherzentrale (German consumer advice centre) gives an initial assessment of legitimacy and amount.
Object in writing – don't stay silent
If you have well-founded doubts, object in writing, ideally by registered mail. An objection is still a response and prevents further automatic escalation.
Watch the deadlines on a payment or enforcement order
Here, days matter: strictly observe objection deadlines and seek legal advice promptly.
Once the claim's legitimacy and amount are confirmed, the rule still applies: paying is usually the fastest way to avoid further costs. For a detailed guide, see Received a debt collection letter – what now?
Terms from A to Z
Glossary of German debt collection terms
The key German terms around default, dunning procedures and enforcement – explained briefly. They usually appear in German on your letter, which is why they are kept untranslated here.
- Ausfallrisiko
- The risk (default risk) that a claim will not be paid in full or in part.
- Bonitätsprüfung
- A creditworthiness check on a contract partner, often via Schufa or a comparable credit agency.
- Fälligkeit
- The due date – the point from which a payment is owed and can be demanded.
- Forderung
- A legally enforceable claim held by a creditor, usually to a payment.
- Forderungsmanagement
- Systematic monitoring, control and collection of outstanding claims within a company (receivables management).
- Inkassokosten
- Fees charged for involving a debt collection agency, which under certain conditions can be billed to the debtor.
- Inkassounternehmen
- A service provider that pursues outstanding claims on behalf of a creditor, out of court.
- Insolvenz
- Insolvency – the inability to pay debts or over-indebtedness of a person or company, leading to insolvency proceedings.
- Mahnbescheid
- A court payment order in the dunning procedure, formally asserting a claim.
- Mahnung
- An out-of-court reminder in which a creditor asks the debtor to pay.
- Mahnverfahren
- A simplified court procedure to enforce undisputed monetary claims.
- Pfändung
- Seizure – the forced confiscation of a debtor's assets as part of enforcement.
- Ratenzahlung
- An agreement to pay a claim in several instalments instead of all at once.
- Restschuldbefreiung
- Discharge of remaining debt at the end of insolvency proceedings, under certain conditions.
- Schufa
- Germany's main credit reporting agency, holding creditworthiness data on individuals and companies.
- Schuldnerberatung
- Free or low-cost debt counselling for over-indebted individuals, often via recognised organisations.
- Titulierung
- The process by which a claim obtains an enforceable legal title, for example through an enforcement order.
- Verjährung
- The statute of limitations – the expiry of a legal deadline after which a claim can no longer be enforced in court.
- Vermögensauskunft
- A sworn statement of assets given by the debtor as part of enforcement.
- Vollstreckungsbescheid
- An enforceable title issued after an unanswered payment order, which makes the claim enforceable.
- Verzugszinsen
- Default interest owed by the debtor, on top of the principal claim, once default has begun.
- Zahlungsverzug
- Default – a state in which a due payment is not made despite being possible and without justification.
- Zwangsvollstreckung
- State-enforced collection of a legally established claim, for example through seizure.
Common questions
Questions from practice
If the underlying contract was validly formed and the claim is legitimate, you have a payment obligation under German law. If you doubt its legitimacy, check the claim first before paying or objecting.
The fastest way is to get in touch: pay if the claim is legitimate, or agree on an instalment plan. Every day without a response can trigger the next, more expensive stage of the process.
In principle, only the costs a lawyer could also charge. The amount of many collection claims can therefore be challenged and should be checked if in doubt, for example with the Verbraucherzentrale's collection check.
Further reminder and collection costs may apply, followed by a court dunning procedure with a payment order and enforcement order, and ultimately enforcement measures and a possible negative entry with credit agencies.
Yes – as long as an enforcement measure hasn't already been completed, we generally accept a realistic instalment agreement. It's important to calculate the instalment honestly, to avoid falling into default again.
Take action now
Resolve your claim – before the next cost stage applies
Whether it's an outstanding claim, an ongoing reminder, or a letter you've already received from us: a short response is enough to clarify whether and how further costs can be avoided – for example through payment or an instalment agreement.
You can find our contact details in the legal notice (Impressum).
Last updated: 2 October 2026