Objections to Debt Collection: What to Do When the Customer Disputes the Debt
When a customer disputes a claim, the rules of the game change. Here is how to assess the objection, what you may and may not do, and the routes you have to get the matter decided.
When the customer says "I don't owe that"
Most unpaid invoices are down to forgetfulness or cash-flow problems. But sometimes the customer answers your reminder with an objection (indsigelse): the goods were defective, the work was not done as agreed, the amount is wrong, or the customer says they never ordered anything at all. An objection changes the situation, because a disputed claim cannot be recovered like an ordinary, undisputed claim.
Types of objection
- Defects: the customer believes the goods or service were not up to standard.
- The amount: the customer agrees something is owed, but not how much, for example extra work, discounts or fees.
- The agreement: the customer disputes that an agreement was made, or what it covered.
- Counterclaim: the customer believes they have a claim against you that should be set off.
- Payment: the customer believes they have already paid.
Step 1: Assess the objection objectively
Take the objection seriously, even if it looks like a delaying tactic. Go through the agreement, order confirmation, delivery documentation, correspondence and any photos. Ask yourself: is there something in it? Could part of the claim be justified?
Between businesses, the buyer must as a rule complain without undue delay once a defect is, or should have been, discovered. A complaint that only arrives when you chase payment several months after delivery may therefore be weaker, but it depends on the specific circumstances.
Expert tip: Ask for the objection in writing
Ask the customer to describe exactly what they disagree with, and why. This forces the objection to become specific, and gives you a documented basis on which to assess, and if necessary rebut, it.
Step 2: Split the claim
Often the disagreement only concerns part of the invoice. In that case, ask the customer to pay the undisputed part immediately while you resolve the rest. This reduces your loss and makes the remaining dispute smaller.
What does the objection mean for debt collection?
Under the rules on good debt collection practice, a debt collection agency or lawyer may not simply carry on collecting as if nothing had happened when the debtor objects. The objection must be dealt with. And if the claim is genuinely disputed, several tools are no longer suitable:
- A payment order (betalingspåkrav) at the bailiff's court is only intended for claims where you do not expect objections. If the debtor objects, the payment order is not endorsed.
- Execution (udlæg) requires an enforceable title, typically a judgment, a settlement or an endorsed payment order.
A disputed claim therefore typically has to be resolved by agreement or decided by a court, an arbitration tribunal or a complaints board.
Step 3: Try to reach a solution
Many disputes can be resolved with a phone call and a compromise. A settlement where you meet in the middle is often cheaper than a lawsuit, even if you get a little less than you believe you are owed. Always put the settlement in writing, stating clearly what has been agreed and that the matter is thereby closed.
Expert tip: Set a deadline for negotiations
Do not let negotiations drag on indefinitely. Agree a specific deadline for reaching agreement, and what you will do if you do not. This keeps the case moving.
Step 4: Get the matter decided
If you cannot agree, the options are typically:
- A lawsuit: claims up to DKK 50,000 are as a rule handled under the special small claims rules, where the judge guides the parties and you do not need a lawyer. Larger claims are handled as ordinary civil cases. Cases are filed digitally via minretssag.dk.
- Arbitration: if your agreement contains an arbitration clause, for example under AB 18 in construction, the dispute is decided by arbitration.
- A complaints board: if the customer is a consumer, the dispute can in many cases be handled by a complaints board, such as the Danish Consumer Complaints Board (Forbrugerklagenævnet).
- Court mediation: once a lawsuit has been filed, the parties can ask the court for a mediator to help them reach an agreed solution.
Remember the limitation period
A dispute does not pause the limitation period. Most claims become time-barred after 3 years, and neither reminders nor negotiations interrupt the limitation period. If the customer disputes the claim and the matter drags on, you must make sure to take legal steps in time.
Getting started
An objection is not necessarily the end of the claim, but it requires a different approach. Assess it objectively, get the undisputed part paid, try to settle, and otherwise get the matter decided before the claim becomes time-barred. Through InkassoHurtig you can get no-obligation quotes from police-authorised debt collection agencies and lawyers who can assess your case. This content is general information and not legal advice.