Collection services are charged when payment is made by direct debit. Payment by direct debit results in return debit notes (for lack of funds or objection). The collection of returned direct debits is collected by payment providers in cooperation with renowned collection agencies or law firms.
These collection service providers first send a reminder by email in the case of a returned direct debit. If there is no response, there are up to two reminders and sometimes telephone calls to the debtor. If after the second reminder the payment still has not been received, the judicial dunning procedure will be initiated at the responsible local court. The debtor will be charged for any further legal fees and court costs.
In Germany, debt collection companies must be registered in the Legal Services Register (RDG), which allows you to see which persons have been permitted to provide legal services. It is also possible to find out which persons have been prohibited from providing legal services.