More and more people are receiving debt collection letters and are unsure whether they are genuine or fraudulent. Sebastian Ludwig, CEO of the coeo Group and an expert with over 20 years of experience in finance and debt collection, provides valuable tips on how to distinguish legitimate claims from fraudulent ones.
A credible debt collection letter always contains clear, legally valid information about the creditor and the claim. It is also important that the full contact details of the debt collection company are provided. The design is also revealing: legitimate letters are professionally structured, while illegitimate ones often feature sloppy designs or blurred logos. If you are unsure, you can check the legitimacy of a debt collection company via the Legal Services Register or the Federal Association of German Debt Collection Companies (BDIU).
According to Ludwig, debt collection proceedings are only initiated if at least two reminders from the creditor have been unsuccessful. Only then is a debt collection agency commissioned. The costs incurred depend on the amount of the claim. If no agreement can be reached, this can lead to court collection proceedings and, in the worst case, to enforcement measures.
The expert advises never to ignore collection letters. Instead, you should seek to talk to the collection agency at an early stage. Most service providers – including coeo – offer telephone advice or digital self-service portals where you can easily arrange installment payments or deferrals.
Ludwig also points out that when a reminder is received, the claim should be carefully checked. If in doubt, it is helpful to consult the BDIU. Transparent communication with the debt collection agency is crucial to clear up any misunderstandings. Important: Payments should only be made directly to the specified debt collection agency.
Experts are currently warning of a particularly perfidious scam: Anyone who reacts carelessly to fake collection letters can fall into a subscription trap and lose large sums of money. This makes it all the more important to look closely at every reminder and deal with outstanding claims seriously.
You can find the full article here.
About the coeo Group
The coeo Group is the leading technology-based debt collection company in Europe. With a clear focus on combining pioneering AI and first-class customer service, coeo is setting new standards in the industry and continuously driving the optimization and further development of receivables management and all other business processes.
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