Inkasso in Germany: how to check a payment demand

What Inkasso is

In Germany there is no single debt collection law as there is in some other countries: the rules of civil law (BGB) apply. Anyone who is owed money and doesn't get it can approach a collection agency (Inkassobüro), which is authorised to recover the debt on behalf of the creditor.

Receiving a payment demand from a collection agency does not automatically mean the debt is valid. It only means that someone claims you owe them that money.

The first thing to do is therefore to check: is the amount right? Is the fee they're charging correct? Every day an open debt goes unpaid, interest and costs grow.

The Verbraucherzentrale's free Inkasso-Check

The Verbraucherzentrale offers a free online check called Inkasso-Check. You enter the details of the dispute and the tool gives you two answers:

1. Whether you have to pay or not (whether the claim is justified).
2. Whether the amount demanded is correct, that is whether the interest and costs are properly calculated.

How to use it, step by step

1. Get paper and a pen and copy everything. Keep the original of every letter you receive and note the dates.
2. Check whether there's a deadline. Written contests have precise deadlines (see below). If you've already missed one, it's still worth using the Inkasso-Check.
3. Verify the numbers. Check that the principal amount corresponds to what you actually received (goods, services, rent), that the interest is correctly calculated and that the costs are proportionate.
4. Enter the details in the Verbraucherzentrale's tool and read the assessment.
5. Decide based on the result. If you owe it, pay; if it's partly unfair, contest in writing; if it's entirely unfounded, consider legal advice.

The three scenarios and what to do

If you have to pay

Pay, even in instalments. The Verbraucherzentrale's general principle is clear: whoever knows they owe a sum must pay it. Fighting over a debt you know you owe often costs more than it recovers.

If the amount is partly wrong

Contest in writing only the part you believe you don't owe. By paying the undisputed part you avoid additional costs and show good faith.

If the debt can be contested

Contest in writing within the deadline stated in the letter. Remember that a simple letter to the collection agency isn't enough to stop the process: the agency can still go to court.

Always contest in writing and within the deadline

This is the single most important point, and the Verbraucherzentrale repeats it in its guidance:

• The debt must be contested in writing within the stated deadline. If you don't contest in time, collection agencies are authorised to report your record to the credit reference agencies.
• A verbal contest on the phone doesn't count. You need a letter, a fax or a confirmed email.
• If you receive court documents, always respond. If you don't act, you can be judgmented against without knowing.

When it ends up in court

If the creditor doesn't stop, the case can reach the Amtsgericht (local court). Two things to know:

• Cases like this are almost always decided at first instance, so an appeal is rare.
• An appeal (Berufungsbeschwerde) costs a minimum of 600 €, which discourages most smaller cases.

Another important point: a court doesn't always side with the creditor. Precisely because in these cases the competent judge decides, the Verbraucherzentrale warns that it cannot guarantee a court will follow its assessment.

If you've just arrived from another country

This guide concerns debts incurred in Germany. If the debt arose in your country of origin, the situation is different and more complicated: cross-border debt recovery is governed by a dedicated EU regulation (the so-called Inkassodienstleistungen regulation) and rules on the applicable law. For a case like that, get legal advice: the German Inkasso rules don't simply apply.

Don't delay

The cheapest adviser of all is prevention. If a payment demand arrives and you have doubts, replying in writing within the deadline is always cheaper than facing court proceedings.

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This guide provides information and does not replace individual legal advice. For your specific situation, contact a Verbraucherzentrale or a lawyer.