Inkassoloven (the Danish Debt Collection Act)
Also known as the danish debt collection act, lov om inkassovirksomhed, inkassoloven
Inkassoloven governs who may carry on debt collection and how it may be done — including the requirement of a formal demand and of good collection practice.
In practice
Inkassoloven is the act that makes debt collection a regulated trade rather than a free discipline. Two things in it bear directly on every creditor:
The formal demand. A formal demand with at least 10 days’ notice must be sent before a case may be handed over for collection. Skip it, and the costs cannot be passed on to the debtor.
Good collection practice. Recovery must not be pursued by methods that subject the debtor to unreasonable pressure. That applies equally when you run collection in-house.
Where it commonly goes wrong
- The act is assumed to apply only to collection agencies. The rules on the formal demand and on good practice apply just as much to the creditor who recovers his own claims.