How does Payt's amicable collection process work?

Steps, communication, and costs of an amicable collection process at Payt.

Practice shows that the majority of claims that are not disputed can be collected by fairly simple means (letter, emails and text messages). With disputed claims, the added value of the collection agency is limited, as in most cases these are put back to the client. It is therefore not surprising that organizations are quite often dissatisfied with the cooperation with collection agencies because of the working method, unclear procedures and cost structures. Therefore, Payt offers you every opportunity to handle debt collection matters yourself.

How a collection process within Payt differs from traditional collection agencies:

• Collection cases remain under your own direction
• You decide on the waiver or collection of collection costs
• You receive the collected collection costs on your account
• Personal contact with your customer for an improved relationship

The smart, automated management of the collection process ensures optimal effectiveness. You also decide on the collection fees charged to the customer (collecting them, partially waiving them, or fully waiving them). This way, you maintain control over your relationship with the customer throughout the entire collection process.

What do I need to know about a collection case?

If the customer purchases products or services and does not pay for them on time, you can charge extra fees for them. These extra costs are called collection costs or extrajudicial collection costs. Extrajudicial costs are costs that may be charged outside of legal proceedings. Collection costs cover the extra costs a business owner incurs to collect the debt. 

What precedes a collection process?

A customer with an invoice that has not been paid will be reminded by Payt using the agreed flow. At the end of this reminder phase, Payt sends out a final reminder.

Before a debt collection case to an individual can start, it is a legal requirement to send a final reminder. In this final reminder a payment term of 14 days must be given and an announcement of the amount of the collection costs must be included. This is sent by Payt both by email and letter to give your customer one last opportunity to pay the invoice without additional costs. 

Even though this last reminder is not required for B2B, experience shows that for B2B the last reminder is also a very effective step to get the invoices paid. Also, you are legally stronger if you have sent a final reminder by email and post to the customer.

What does the collection process at Payt look like?

The collection process at Payt consists of the following phases:

1. First notice
   On the first working day after the start of the process (day 1 of the collection process), an e-mail, SMS, and a letter are sent. The deadline for payment is 10 days from the date of the letter.
2. Reminder first notice
   On the first business day at least 6 days after the reminder (day 6 of the collection trajectory), a call robot is deployed that calls the entered number, supported by an e-mail and SMS reminder of the previously sent reminder.
3. Second notice
   On the first business day at least 5 days after the reminder reminder (day 12 of the collection process), a text message and a registered e-mail are sent. If the e-mail address is not known, this e-mail is automatically replaced by a letter. The payment deadline is 8 days from the date of the letter.
4. Reminder second notice
   On the first working day at least 5 days after the second reminder (day 17 of the collection process), a text message and an e-mail are sent to remind of the second reminder.
5. Formal notice
   On the first business day at least 4 days after the reminder second reminder (day 21 of the collection process), a text message, an e-mail and a letter are sent. The deadline for payment is 5 days from the date of the letter.
6. Pre-court phase (pre-judicial letter)
   On the first working day at least 6 days after the formal notice (day 27 of the collection process) you will receive a reminder about the end of the collection process. The collection process can then be continued with a judicial process. To continue the process within Payt you must have chosen a bailiff. This can be applied per case or as a generic setting for all collection cases that remain unpaid after the formal notice.

On the first business day, at least 4 days after this reminder (day 31 of the collection process), the pre-court letter is sent. The deadline for payment is 3 days from the date of the letter. If no payment is made within this period, the case will be forwarded to the chosen bailiff. In Payt's application you can compare the different bailiffs. If you want to use your own bailiff or lawyer, this is of course also possible.

How high are the collection costs for the amicable collection process?

The legal collection costs are determined in the Collection Costs Act (WIK). Collection costs consist of a legally determined percentage of the invoice. These are the following percentages:

There is a minimum amount of €40 for collection costs, regardless of the amount of the outstanding invoice. The creditor may ask for this amount at any time.

How will there be communication with my customer?

During the collection phase, customers can log on to www.checkinvoices.com to view and respond to the file. The login information required for the customer is part of all correspondence to your customer. Payt assumes that responses from customers to collection matters are handled by you as the creditor.

What should I do if I receive a payment?

Payments of invoices that are part of a collection case are automatically recorded by Payt from your accounting package. Payment or remission of additional charges must be processed manually within Payt. You can do this on the case page.