WHICH COSTS ARE ASSOCIATED WITH THE PAYMENT OF MY DEBT?
Why do I have to pay for debt recovery?
The debtor’s obligation to pay the debt administration expenses follows from Section 6 of the Law on Extrajudicial Debt Recovery.
On what basis is late payment interest calculated?
Late payment interest is a fee paid to your service provider for the delayed payment of your invoice(s).
Late payment interest is charged for the period running from the time when the financial obligation becomes overdue to the complete fulfilment of that obligation. The percentage of late payment interest depends on the terms of the contract you have entered into with your service provider or vendor or the rate established by law.
The calculation of late payment interest continues even after the creditor has turned to a collection company or to court for collection of the debt or if the claim has been assigned to a bailiff.
What is interest?
Interest is a fee paid to the lender for use of the borrowed money. Interest may only be charged if agreed in the contract.
Over what period is interest charged?
Interest may be claimed for the period during which the borrower was entitled to use the money, i.e. from the time of payment of the money to the borrower until the due date of the repayment of the loan. After this period, the calculation of interest stops.