An unpaid bill can quickly become unpleasant, but if you react in time, you can usually avoid the worst. In a recent interview, Sebastian Ludwig, CEO of the coeo Group, explained what consumers should pay attention to in the dunning process and why a quick response is crucial.
“A reminder is no reason to panic—but it is a reason to take action,” said Ludwig. Many people tend to ignore or postpone payment requests. “However, this is the worst solution. With each reminder letter, the costs increase, and at some point, a collection agency will be called in.”
When this happens, clear legal guidelines apply. “As soon as a claim is handed over to a legal service provider, a collection fee is incurred, which is based on the German Lawyers' Fees Act (RVG),” explains Ludwig. This rules out arbitrary or excessive fees.
The CEO emphasizes that debt collection service providers today are service-oriented: “We see ourselves as an extension of the client, but with a clear focus on customer service. Our goal is to create transparency and enable solutions before legal action becomes necessary.”
Five tips for avoiding unnecessary costs
In the interview, Ludwig also gives practical recommendations on how consumers can deal with reminders correctly:
- Take a close look: Carefully check reminders especially whether the claim is justified. Debt collection agencies are obliged to clearly name the client and the claim.
- Get in touch: If you are unsure or have payment difficulties, contact the creditor or collection agency directly. Open communication helps to quickly clear up misunderstandings.
- Check fees: All costs must be transparent and legally justified. The Consumer Advice Center offers a free “collection check” for this purpose.
- Respond quickly: The longer reminders are ignored, the higher the fees will be. A quick response saves time and money.
- Stay calm: A reminder is not an admission of guilt, it is an indication that action is needed. If you respond in a structured manner, you can usually resolve the matter without complications.
“It is in the interest of all parties involved to settle outstanding claims quickly and fairly,” says Ludwig. “Our goal is to support this process – transparently, comprehensibly, and in the spirit of a functioning economic cycle.”
Click here for the full interview.
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.
Press contact:
Julia Bernhard,
Senior Marketing & Public Relations Manager DACH