What are collection costs?

A debt collection agency sends the consumer one or more payment reminders. These payment reminders not only contain the amount that initially had to be paid, but also the collection costs. The amount depends on the amount of the bill. The amount of the collection costs is stated in the law: WIK (Collection Costs Act). This law is there to give consumers clarity about the expected collection costs in the event of payment arrears. Collection costs are calculated if you still have not paid your (full) debt after several payment reminders. These costs are incurred by the collection agency to collect the debt.