Debt collection letters cause uncertainty for many people, especially when it is unclear whether the claim is legitimate or fraudulent. Sebastian Ludwig, CEO of the coeo Group and an expert with over 20 years of experience in debt collection and finance, gives helpful tips in an interview with CHIP on how to distinguish between legitimate and fake letters.
A genuine debt collection letter always contains clear and legally sound information about the creditor and the claim, as well as the full contact details of the debt collection company. Dubious letters, on the other hand, often stand out due to blurred logos, unprofessional design, or missing information. If you have any doubts, you should check whether the company is registered in the Legal Services Register or with the Federal Association of German Debt Collection Companies (BDIU).
According to Ludwig, debt collection proceedings only begin after at least two unsuccessful reminders. The prerequisite is that the debtor is in default – this usually happens 30 days after the invoice is due and has been received. The collection costs incurred are regulated by law and depend on the amount of the claim.
Many debt collection companies, including coeo, offer straightforward solutions such as telephone advice or digital self-service portals where installment payments or deferrals can be arranged. If no agreement can be reached, legal dunning proceedings may follow, possibly with subsequent enforcement measures.
Ludwig recommends checking the claim, contacting the collection agency early on, and not ignoring it. Payments should be made directly to the collection agency. If you are unsure, the collection check offered by the consumer advice center or the BDIU can also help.
Ludwig is currently warning of a particularly dangerous scam in which recipients are asked to download a file, which can quickly lead to an expensive subscription trap. Anyone who receives such letters should be extremely cautious. In other cases, however, such as genuine traffic violations after a vacation, the claim is entirely justified, as confirmed by the ADAC.
Recognizing legitimacy, responding correctly, and not falling into the fraud trap—these are the most important steps when dealing with debt collection letters.
You can find the entire 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.
Press contact:
Julia Bernhard
Senior Marketing & Public Relations Manager DACH