The Debt Collection Notice: Requirements under Section 10
Before a debt can be sent to collection in Denmark, the debtor must have received a valid debt collection notice. Here are the requirements of section 10 of the Debt Collection Act, and the mistakes that can cost you the right to claim costs.
What is a debt collection notice?
A debt collection notice, in the Act called a letter of demand (påkravsskrivelse, commonly inkassovarsel), is the letter the debtor must have received before any further steps may be taken to recover an overdue claim. The requirement is in section 10 of the Danish Debt Collection Act (inkassoloven), and it applies whether you recover the claim yourself or hand it to a debt collection agency or a lawyer.
In practice, the notice is often sent as the final reminder. What matters is not what the letter is called, but that it meets the legal requirements. If it does not, the debtor may not have to pay the debt collection costs you later charge.
What does section 10 say?
The provision contains three main requirements:
- Demand before collection: before any other recovery measures are taken against the debtor, a letter of demand must have been sent and its deadline must have expired (section 10(1)).
- Clear information: the letter must clearly state all the information the debtor needs to assess the claim (section 10(2)).
- A deadline of at least 10 days: the letter must give a deadline within which the debtor can pay without incurring further costs. The deadline must be at least 10 days from when the letter is sent (section 10(3)).
The Act does not contain an exhaustive checklist. The requirement is that the debtor can understand what is being claimed and why.
What the notice should contain
To meet the requirement for clear information, the notice should at a minimum include:
- Who the claim is from (the creditor's name and contact details)
- What the claim concerns (e.g. invoice number, invoice date and what was supplied)
- The principal and a breakdown of any interest and fees already added
- A specific payment deadline of at least 10 days from sending
- A clear warning that the case will be sent to debt collection and that further costs will be incurred if payment is not made by the deadline
- How and where payment can be made
The Danish Consumer Ombudsman (Forbrugerombudsmanden), which enforces the rules on good debt collection practice and letters of demand, has emphasised that the warning about debt collection costs must appear clearly in the letter itself, not only in an attachment or your general terms.
Expert tip: Document that the notice was sent
The deadline runs from sending, so you must be able to document when and how the notice was sent. Keep a copy of the letter and a receipt, for example from email, e-Boks (Denmark's digital mailbox) or post. If the debtor later denies receiving it, your documentation is what counts.
Reminder fees and debt collection costs
Fees for reminders and debt collection are regulated by the Danish Interest Act (renteloven):
- Reminder fee: at most DKK 100 per reminder, for no more than 3 reminders, and there must be at least 10 days between the reminders you charge for (section 9 b).
- Fixed compensation between businesses: if the debtor is also a business, you can claim fixed compensation of DKK 310 for late payment (section 9 a). This does not apply to consumers.
- Debt collection costs: if the case is handed to a debt collection agency or a lawyer, the debtor can be charged no more than the amounts set in the executive order on out-of-court collection costs. For claims arising after 1 July 2024, the cap is for example DKK 500 excl. VAT for claims up to DKK 1,000 and DKK 2,700 excl. VAT for claims between DKK 25,001 and 50,000.
A condition for charging debt collection costs is that the debtor has first received a correct letter of demand with a deadline of at least 10 days and a warning that further costs will follow.
Expert tip: Use a well-tested template
Most errors in debt collection notices are missing information or a deadline that is too short. Use a fixed template (many accounting programs have a built-in reminder function) and check it against section 10 of the Debt Collection Act and section 9 b of the Interest Act before you start using it.
Consequences of a defective notice
If the notice does not meet the requirements, or if the deadline has not expired before the case is passed on, you risk:
- the debtor not having to pay the debt collection costs
- having to send a new notice with a new deadline of at least 10 days, delaying recovery
- the Consumer Ombudsman intervening if you systematically breach the rules towards consumers
The claim itself does not lapse because the notice was defective, but recovering it becomes slower and more expensive.
A practical example
Your company has supplied a service to a business customer, due on 1 March. The invoice has not been paid. On 5 March you send a reminder (DKK 100), and on 16 March you send a debt collection notice with a payment deadline of 26 March: 10 days after sending. The notice states the invoice number, principal, reminder fee, late-payment interest from the due date, the DKK 310 fixed compensation and a clear warning that the case will go to debt collection with further costs if payment is not made.
If the customer has not paid by 26 March, the case can then be handed over to a debt collection agency or a lawyer.
Getting started
A correct debt collection notice is the foundation of all further recovery. Review your current reminder template, make sure the deadline is always at least 10 days from sending, and keep documentation of everything you send.
If you need help recovering a claim, you can use InkassoHurtig to get no-obligation quotes from police-authorised debt collection agencies and lawyers. This content is general information and not legal advice.