Got a collection agency letter (Inkasso) — what now? Deadlines, costs, and how to respond
A letter from a debt collection agency (Inkassobüro) usually looks more serious than a regular reminder – big letters, lots of legal references, sometimes threats of court or Schufa. Here's a calm overview of what such a letter really means and how to respond.
What is a collection agency, exactly?
A collection agency is a company that collects outstanding claims on behalf of a creditor (e.g. a landlord, online shop, phone provider). The agency itself isn't a court or a government office – it acts on behalf of the original creditor and can charge additional fees for its own work.
First question: is the claim even valid?
- Do you recognize the original invoice this is about?
- Was it already paid, maybe directly to the original creditor?
- Is the claim even still within the statute of limitations (usually 3 years)?
- Does the name, address, and amount match?
Collection agencies handle large amounts of data, and mistakes happen — wrong person, already-paid invoice, expired claim. A collection letter is not proof that the claim is valid.
How much can collection fees be?
Collection fees are legally capped and can't add up arbitrarily. They're based on the size of the original claim. If the stated additional costs seem very high compared to the original bill, it's worth a closer look or asking for clarification.
Which deadlines matter?
A collection agency by itself can't set a court deadline — the payment deadline stated in the letter (often 7–14 days) isn't a legal deadline, just a request. Still, it's worth responding promptly to avoid further collection steps or a formal court dunning procedure. An actual court dunning notice (Mahnbescheid from the Amtsgericht) is a separate, official document with a strict deadline of usually two weeks — that's different from a regular collection letter.
How should you respond?
1. The claim is valid, you can pay – pay, referencing the case number.
2. The claim is valid, but you can't pay right now – actively ask for a payment plan, which most agencies offer.
3. You have doubts about the claim – dispute it in writing and ask for proof of the claim (a copy of the original invoice, the contract).
4. The claim is likely expired or already paid – state that clearly, with proof if you have it.
Quick example of a reply letter
- reference to the letter (date, case number)
- what it's about (payment, plan, dispute)
- the key facts in a sentence or two
- a concrete request at the end
This is exactly where BriefMagic helps: describe your situation in your own language, get a clearly structured formal letter in German – with the right tone for the collection agency. You don't need to know the structure of a German business letter or hunt for the right phrasing. There's a translation back into your language too, and past letters stay saved in case a reply comes.
Quick summary
- A collection letter isn't a court proceeding yet.
- Check first if the claim is even valid.
- Collection fees are legally capped.
- Respond promptly, but don't panic.
- A clear reply is almost always the best move.
This article doesn't replace legal advice. For larger amounts or complicated cases, talk to a lawyer or a Schuldnerberatung.