The Netherlands

The Netherlands

Netherlands

 

GGN
Amicable debt collection, pre-legal specialists and dedicated legal practice in enforcement proceedings: GGN has it all in-house. A unique combination making us a broadly based and trendsetting organisation in the area of credit management and debt recovery.

Operating nationwide

GGN

GGN has 6 offices and 40 judicial officers operating across the Netherlands. Over the years we have built up a valuable network where thorough knowledge of local markets and regional legislation are key.

Expert staff
In total, our organisation counts some 500 employees, among them more than 40 judicial officers, 250 collection specialists and 15 lawyers. In addition, GGN operates an extensive network.

Business-wise judicial officers
We understand what business is about and we know what is important to you. Our expertise is based on what matters to business. We help you to achieve your goals swiftly and smoothly.

International claims
We have significant experience in collecting international debts and solving related issues under private international law. This covers the areas of international commercial contracting as well as procedural law (including attachment and execution law and arbitration). We counsel and litigate with regard to the distribution and purchase, sale and delivery of the most diverse goods and services, from manufacturer to end user. We are internationally oriented and we have a well-established informal network of law firms spanning the globe.

Debt collection in the Netherlands
In the Netherlands, payment default cases are handled by debt collection agencies and judicial officers. The difference between the two is that there is no specific legislation applying to debt collection agencies and that the judicial officer is
a protected profession. After a four-year university education, the judicial officer is appointed by the Crown. There is no zoning in the Netherlands; all judicial officers are entitled to take official action anywhere in the Netherlands.

Amicable debt collection procedure
1. In the Netherlands it is normal to first try to collect an outstanding claim out of court. The Dutch are inclined to pay, only if they have received various reminders and payment request. The amicable debt collection process generally consists of written reminders, emails with payment links and a payment demand by telephone. This process begins with the so-called “fourteen day letter” or pre collection letter; this letter gives the debtor another fourteen days to settle the claim without additional costs. If timely payment fails, the creditor is entitled to increase the demand with collection costs established by law. Those costs vary from €40 to €6.775 depending on the principal amount to be collected, and in most cases VAT. These costs are for the account and risk of the debtor.
Here you can calculate the collection costs: https://www.kbvg.nl/gerechtsdeurwaarders/kosten/incassokosten-calculator

Judicial procedures
If payment remains outstanding, one can revert to court proceedings. Proceedings concerning claims up to €25,000 can be handled completely by the court bailiff at the district court. Only if the claim is higher than €25,000 it is required to institute proceedings via an attorney in the civil courts.

Once a Dutch debtor has been served a summons, he has six weeks to respond to it and most debtors avail themselves of the right to prolong this period by six weeks. The court will then set a date for an oral hearing, which will take place another three to four months later. In practice, this means that any oral hearing will take place six to eight months after the summons was issued.

If the disputes can’t be settled during the oral hearing, the parties will need to institute further proceedings and any witnesses will then need to be heard. In such cases, the procedure will last twelve to eighteen months. The legal costs are made up of the following components:
• summons at €76,17 plus 21% VAT
• court fee (depending on the principal amount and the claimant)
• attorney’s fees (depending on how the procedure runs and the number of procedural stages)
Roughly one can expect legal costs of around €750 to €1,000 in district court. Generally, the debtor is ordered to pay those costs.  The costs of instituting proceedings via a lawyer can quickly increase from € 2,000 to € 5,000. In complex cases costs can add up quickly, in which case the debtor will normally be ordered to pay part of the costs, given the fact that the costs actually incurred will always be higher.

Undisputed claims
An alternative procedure is the European Payment Order (EPO) as long as the claim is undisputed and there is a clear cross-border element given. The court fees due are the same as the court fees charged in substantive proceedings, but the EPO Procedure takes much less time. In addition, there are no costs charged for the summons, but a form does need to be served twice on the debtor.