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Rules for Collection Services from April 1

Collection service providers must comply with quality requirements and register as of April 1, 2024. With these requirements and the registration obligation from the Quality of Collection Services Act, the profession is being regulated for the first time in the Netherlands. People with debts will be better protected, and creditors will know better what collection service providers can do for them. The law should also lead to fewer unprofessional practices and limit the accumulation of collection costs. The Council of Ministers has approved the underlying regulations proposed by Minister Weerwind for Legal Protection so that the law can come into effect.

Quality Requirements

The quality requirements apply to all parties that are commercially engaged in collecting extrajudicial debts on behalf of third parties from consumers residing in the Netherlands. These quality requirements also apply if the claim has been resold to another party. Service providers must register in a register that is accessible to everyone. Quality requirements are set for their work in terms of professional competence, interaction with creditors and debtors, information provision, and complaint handling. Additionally, the law contains a provision to limit the accumulation of collection costs for recurring claims. The collection costs may amount to a maximum of €140 every six months if the monthly claim or installment amount is less than €266.67. The limitation of collection costs will take effect from October 1, 2024.

Supervision and Registration

Existing collection service providers must register within one year after April 1, 2024. Collection service providers starting their services after April 1 must register immediately. Screening authority Justis will manage the register for collection service providers and screen extrajudicial collection agencies. The Inspectorate of Justice and Security will supervise the quality requirements and registration obligation and can enforce if collection service providers do not comply with the rules.