Recovery / collection of receivables

In times of economic downturn, the importance of sound financial management for both companies and private individuals clearly increases. Especially in such an environment, when receivables are not paid by the due date, there is good reason to commence collection procedures quickly and efficiently, in order to minimise losses and cash shortfalls. Our office will take care of all kinds of collection assignments, always in a professional manner. The collection procedures applied are suitable for all kinds of open claims (for invoiced amounts, rent payments, contractual penalties, etc.), and the debtor may equally well be a company or a private individual. Through our office, the collection process can begin as soon as the due date of the receivable has passed or the agreement has not been honoured.

Voluntary collection

As a general rule, we begin each collection assignment by sending the debtor a request for payment, with a payment term of 14 days. Insofar as the debtor does not make payment within the period stated, along with any interest due for late payment and collection costs, or makes no claim concerning the request for payment, we will commence either court-based collection or bankruptcy collection, depending on the nature of the matter. If the debtor is a company, another option exists: draft collection, the power of which is based on the threat of a public complaint.

Court-based recovery

If the receivable is not contested at the stage of voluntary collection, court recovery begins, with the sending of a concise summons application to the district court. In cases of contested voluntary collection, the summons application should be more detailed.

If the debtor does not challenge the summons (whether concise or extensive), the court will issue a default judgement. If the debtor challenges the application, the matter shall be handled in the district court as a general dispute.

When a valid judgement has been obtained in a collection case, we will send it to an enforcement office for implementation, at which point our assignment comes to an end. During the enforcement process, all amounts accrued will be sent directly to the creditor’s account.

Threat of bankruptcy collection

If it is likely that the creditor will receive sufficient payment through the bankruptcy of the debtor, we can send the debtor a request for payment under threat of bankruptcy proceedings in a voluntary collection once the period determined has elapsed. If the receivable remains unpaid after the set period of one week, the debtor may apply for bankruptcy. After this, we can assist the creditor with bankruptcy proceedings (attendance at creditor meetings, monitoring of receivables, etc.).

Draft collection

In draft collection, the debtor is sent, through our office, a draft (tratta) stating that a complaint will be filed if the debt remains unpaid after the time determined. At the same time, information on the draft will be sent to Suomen Asiakastieto Oy. With this, ‘payment-delay information’ will be created and associated with the debtor’s credit information. While the latter may not be an official entry indicating default on payment, it may have significant consequences for subsequent operations of the debtor company.

When informed of the draft, Suomen Asiakastieto Oy will send the debtor notification of a complaint, with this notice stating that if the receivable is paid within seven days, the complaint will remain tacit but otherwise the claim shall be made public.

In cases of a tacit complaint, the payment-default information will be visible only in the database of Suomen Asiakastieto Oy. A public complaint, in contrast, will be published in the main financial newspapers Kauppalehti and Taloussanomat, and in credit listings.

A draft collection does not proceed to enforcement. Therefore, if the debtor does not submit the receivable after the complaint has been made, commencing collection via the courts is not precluded, and there is good reason to initiate it.

Our office provides the following collection benefits for creditors:

  • Simplicity: Recovery through us does not require the creditor to do anything
  • Swiftness: Our service is often quicker than that of a collection agency.
  • Collection in full: We recover the receivables for you, along with interest and collection costs
  • Efficiency: Collections through an attorney’s office are often more efficient than those handled by the creditors directly
  • Expertise: The client benefits from use of the recovery method that is the most efficient for the collection case at hand
  • Stress-free collection for the creditor: You avoid the need to make contacts that may involve discomfort
  • Seeing the matter through: If the debtor disputes the claim, we process the assignment to the end, handling even extensive court processes (unlike some collection agencies)

Collection costs

We always strive to collect all recovery costs that arise through the assignment from the debtor; only insofar as these are not paid are they billed to the creditor. If the client has insurance against legal expenses and the case is disputed, the insurance company will compensate for the costs arising from the matter, less the applicable deductible. Our price list is available upon request.

Contact us

Spartax Attorneys at Law Ltd
Kalevankatu 3 A
FI-00100 Helsinki

Tel. +358 9 6866 100
Fax +358 9 6866 1066

Aleksanterinkatu 25 B
FI-15140 Lahti

Tel. +358 9 6866 100
Fax. +358 9 6866 1066

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