Extrajudicial costs

Question: In letters of reminder pertaining to outstanding debts, it often says that the debtor is liable for extrajudicial costs. What are extrajudicial costs?

Answer: Extrajudicial costs are costs incurred in recovering the debt, aside from the cost of the court proceedings.

Collection fee

Question: If the debtor does not settle a debt, what may I expect to receive with regard to extrajudicial costs?

Answer: With reference to the amount of extrajudicial costs receivable, a clause may be included in the General Terms and Conditions to be adopted. The General Terms and Conditions may, for example, include a clause to the effect that failure to settle the debt will result in a 15% collection fee, which will not be lower than € 150,-. If no clause to this effect has been included in the General Terms and Conditions, the extrajudicial costs may be charged according to the fee recommended by the Dutch Bar. This is a graduated fee beginning at 15% of the debt.

Collection costs in the legal proceedings

Question: If various remainders fail to have the desired effect and legal proceedings are started against the debtor, can the judge order the extrajudicial collection costs to be borne by the debtor?

Answer: If a summons is issued against a debtor, both the extrajudicial collection costs and settlement of the debt may be claimed. If the debtor is subsequently ordered to settle the debt, the judge will also sustain the claim for extrajudicial collection costs. If a clause has been included in the General Terms and Conditions, but the costs claimed exceed those charged by the Dutch Bar, the judge may reduce the claim according to the rate charged by the Dutch Bar if the costs claimed are not deemed to be proportionate to the debt itself. The debtor may also be ordered to pay the interest charge for late payment if the debtor has already been informed of this claim in a letter of reminder.