Many who seek stability within the Bavarian lands, whether for permanent residence, work, or study, often wonder about the nature of the debt collection agency Inkasso in Germany.
So if you want to know what Inkasso in Germany is and what role it plays, as well as how much it charges for its services, then continue reading the following lines.
As we will review and clarify many important points for you in this article on AlmanyPedia encyclopedia, we will explain everything related to INKASSO in Germany and how you can avail the services it offers, as well as the procedures for enforcement through it.
What is Inkasso in Germany?
INKASSO in Germany is an abbreviation for a debt collection agency that operates in accordance with German law. It assists companies whose clients have not fulfilled their obligations in making debt payments.
After World War II, Germany sought various ways to address and recover from its debt issues. Eventually, it established the “Ankaso Agency” to be responsible for tackling this problem.
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Incaso negotiates with debtors who have not paid their debts to reach solutions that assist the creditor in securing their rights under its supervision.
INKASSO in Germany is considered one of the steps that has made a real difference in the economy of many companies, and it has even improved the relationship between creditors and debtors.
Advantages of Inkasso in Germany
The role played by Inkasso in Germany is very important and has led to significant advancements in resolving debt repayment issues.
INKASSO in Germany is distinguished by several effective advantages, including the following:
- It helps improve financial relationships between debtors and creditors.
- Incaso offers various effective methods for debt repayment.
- The agency leverages modern technology to access the best means that bring maximum benefits to its clients.
- The cost of debt collection services in Germany, provided by INKASSO, is not high and is determined based on the amount of the debt.
- The Anka-Security plays a neutral role and carries out its tasks ethically in accordance with German law.
Also, read more about how to use a tax calculator in Germany, Brutto Netto Rechner.
The operational method of the Inkasso debt collection agency in Germany
It is customary in Germany for bills and financial documents related to your transactions in the country to be sent to your email, which you should regularly monitor.
As well as all the documents and notifications related to tuition payment requests, installment payments, payment reminders, as well as the notifications associated with Inkaso, which may contain threats of legal actions against you.
When purchasing any item on installment in Germany, it is necessary for you to comply with paying the installments on their specified due dates. Failure to do so may result in the company you dealt with resorting to Inkasso in order to collect these outstanding payments.
In this case, Inkasso in Germany will contact you to find amicable payment solutions, and then proceed with sending notifications about taking legal actions to resolve this issue.
The measures of enforcement can include the suspension and seizure of your salary, which can impact your Schufa credit report.
When contacted by the collection agency, you will be required to settle the outstanding debt, as well as cover the collection costs and debt reminder fees.
If you purchase any item on an installment basis, you will find that there is a clause in the contract between you and the company that gives them the right to resort to repossession.
Read also about – Key requirements for investing in Germany and obtaining a business residence permit.
What should I do if I receive a collection message from Inkasso in Germany?
Some individuals may receive a reminder message from the Ausländerbehörde (Foreigners’ Office) on their email, which can cause significant panic, especially if they are seeking permanent residency in Germany.
However, we would like to assure you that it is simple, and you can easily solve it by following these steps:
- First, review the details of the debt sent by Ankasu in your email to confirm its accuracy.
- If you find that you have no connection to the purchasing process you are being asked for, you can contact Inkasso to raise an objection, and then you will not be required to make the payment.
- If you have already fallen behind on debt repayment and the mentioned purchase transaction concerns you, please ensure to verify the required amounts.
- Then, after that, communicate with Anecaso to find payment solutions that suit you before it escalates to the German judiciary.
How to distinguish between genuine and forged Encasos messages
Sometimes, a person may find emails in their inbox demanding payment for debts they may not be aware of.
In this case, how do you know that these messages are actually directed to you from a legitimate debt collection agency?
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If you encounter this issue and have not already made this purchase, first ensure that the messages directed to you are from a legitimate debt collection agency by following these steps:
- Make sure to verify the name of the company that owns the original funds, which will be mentioned in the letter.
- Please provide the purchase transaction data, including its date and value.
- Please provide the purchase invoice subject to debt.
- Make sure to verify the information of the debt collection company, which should be registered in the registry for legal services, accessible through the following link.
- If you cannot find any information regarding the existence of a debt collection company, you can contact the relevant regulatory authority, whose details can be found in the following file:
The relationship between Inkasso and Schufa
Some may think that there is no connection between Inkasso and the difficulties a person faces through it with Schufa in Germany, but this is incorrect. The relationship between them is very close for both the debtor and the Inkasso itself.
But first, let us clarify what is Schufa?
Schufa, short for “Schutzgemeinschaft für allgemeine Kreditsicherung,” is the General Credit Protection Association, which is responsible for credit guarantees.
This association or agency collects data on individuals and companies to support debt collection companies, such as Inkasso, when they need certain credit debtor information.
Banks and companies also rely on their reports when anyone applies for loans in Germany.
Therefore, you should ensure that your SCHUFA-Auskunft record is completely clean so as not to affect any loan applications or financial transactions you may have in Germany.
In general, Inkasso communicates with Schufa to obtain the financial data regarding the debtor’s status, which has been entrusted to them by a company to handle the debt collection process in Germany.
You can also learn more about income tax in Germany, how it is calculated, and what types of taxes exist.
Debt collection procedures through Inkasso in Germany
If you purchase any product in Germany, you usually have a grace period to settle its value, which is typically within 15 to 30 days.
If payment is not made within the specified period, the store or company you dealt with may resort to approaching a debt collection agency in Germany to demand payment from you.
Firstly, you will be notified of the necessity to pay and settle the outstanding invoice amount. In this case, you will be required to settle the invoice amount as well as the reminder fee to Incaso.
If you fail to make the payment after the first reminder, Inkasso will notify you that the matter will be dealt with legally and referred to the German judiciary.
In Germany, debt collection agencies like Inkasso are not obligated to provide notifications to debtors, but they do so to facilitate the process and reach an amicable solution.
After the debt issue has reached the German courts, no further action will be taken against you until a verdict is reached in the case. You may seek the assistance of a lawyer to handle and pursue it for a permanent resolution.
Also, read more about what is a WBS (Work and Residence Permit) in Germany and how to obtain it.
Debt collection costs and Inkasso wages
The costs of debt collection through Inkasso vary depending on the value of the invoice being collected, which varies on a case-by-case basis.
In addition, there are also added costs and fees for reminder messages that Inkasso sends to debtors through their email.
Usually, the costs of legal education are not high and do not exceed what a lawyer would earn if appointed in the same case, as lawyers’ fees in Germany are determined by German law.
You can also learn about the costs of education in Germany through the “Verification of Enrollment” feature provided by the Consumer Advice Center to protect your rights.
You can also, if you have paid the debt value late and have not refrained from payment, respond to Anacasso to clarify the matter, through the link of the collection letter.
You can also learn more about how to obtain a loan in Germany without a work contract.
Top Debt Collection Companies in Germany
The selection of the best debt collection companies in Germany primarily relies on the level of trust their clients have in them, which is built upon the company or agency’s honesty and their commitment to fulfilling their obligations towards the client.
Enkaso Company may be considered as one of the emerging companies in the German community, having only dealt with a few clients so far. However, it has managed to perform its work professionally and in a short period of time.
What makes there the best collection agencies in Germany, but in general, there are some well-known companies that you can deal with in Germany for debt collection, including the following companies:
Read Also: Everything you need to know about the types of price increase assistance in Germany and who benefits from them.
Frequently Asked Questions about INKASSO in Germany
What is the function of debt collection companies?
Inkasso, a debt collection company, collects outstanding amounts from debtors on behalf of its clients in exchange for collection fees.
What does “Inkasso” mean?
INKASSO in Germany is an agency responsible for debt collection
What are the types of collection methods used in Inkasso?
Ankaso collects debts through several methods, including negotiating for the settlement of outstanding amounts or through executive seizures and legal proceedings.