Debt Collection Crash Course

A payment reminder is sent by a company that has not been paid for an invoice. In the payment reminder you will be notified that the due date has passed. The reminder includes information about the original invoice. There are also instructions on how to pay. At this stage, the creditor has the right to charge a reminder fee, if such a fee has been agreed upon between the parties.

Possible costs: interest on overdue payment and reminder fee (SEK 60).

No payment remark yet.

If neither the invoice nor the payment reminder have been paid, the case continues in the process and a debt collection letter is sent out. This is usually issued by a debt collection company as an agent for the creditor, or because the creditor has transferred the claim to the debt collection company. The debt collection letter states the capital amount, interest and costs for the outstanding debt.

Possible additional costs: arrangement fee for installment plan (SEK 170) and debt collection fee (SEK 180).

No payment remark yet.

If the amount stated in the debt collection letter still hasn't been paid, or customer service haven't been contacted about the case, the case usually is sent to the Enforcement Agency. The Enforcement Agency will rule on whether you are liable to pay the debt in question.

The Enforcement Officer will inform you in writing regarding the payment order.

Possible additional costs: application for injunction for order to pay (SEK 300) and compensation for work regarding application for injunction (SEK 380).

If the application for payment order is made against a company, the company will receive a payment remark because of the application. This remark usually stays on the company's credit records for five years.

If full payment or an objection to pay is not presented, the debt will be affirmed in a verdict. If the order for payment instead is disputed, the matter may be handed over to the district court to settle the dispute. This would entail additional costs in the form of litigation fees.

If the Enforcement Agency announces a verdict against a private person, he or she receives a payment remark which is registered with the credit information companies. This remark usually stays on the records for three years.

When a debt is determined by a verdict by the Swedish Enforcement Agency or by a court, the Enforcement Agency will inform you about the execution of the decision.

Additional cost: execution fee (SEK 600 per year).