What is debt collection?


If you do not pay a bill, in most cases you will receive a payment reminder and then a debt collection notice. A debt collection notice that is not paid within 14 days is sent to debt collection.

That's why it's important to make paying debt collection notices a priority to avoid debt collection. If the bill is sent for collection, you will immediately incur high fees and interest. Even for small amounts, the sum of the bill and collection fees can quickly add up.

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You can get most bills automatically in your online bank. You just need to log in periodically and approve them.

What happens if I don't pay the debt collection claim?

If you do not pay, the debt collection company will most likely send the case to the Conciliation Board, which acts as both a mediation institution and a court. A judicial recovery of your money will then begin. You will then receive a conciliation complaint in the mail, and the case is then sent for judicial collection.

30 days after legal recovery has started, debt collectors can send a note on you to credit reference agencies. They will then establish a payment alert on you and are obliged to send you a written notification that the alert has been registered.

You have 30 days to avoid a payment default

After this, the credit reference agency must wait 30 days before making the registered payment reference available to those carrying out a credit check (datatilsynet.no) on you. This gives you 30 days to pay the claim or, if necessary, to complain about errors in order to avoid a public payment record.

If you want to appeal against the claim, you must have a reason for doing so and send the appeal to the debt collection company.

Remember that you can contact your creditor at any time and try to reach an agreement. Although it may feel difficult to address your problems, they will usually be resolvable. It is also in the creditor's best interest to work out a payment arrangement with you so that they get their money. Whatever the stage of the process, it is always worth getting in touch.  

How can I get an overview of my debt collection claims?

A good place to start to get an overview of claims against you is the debt register. Here you can find information about your unsecured debts, such as credit cards and consumer loans. Remember to double-check that the figures are up to date and correct if you want to get a full overview of your debts.  

You can also call the debt collection agencies to get information about your cases. If you are in a situation where you have lost track of several small loans, which do not necessarily appear in the debt register, you will have to call several debt collection agencies to get a full overview.

Read more about debt collection at the Consumer Council.

Can I stop debt collection?

The best way to stop debt collection is to pay the debt. However, if you are unable to pay the debt in full straight away, you can contact the debt collection company to see if they will agree to a repayment plan and if they may be able to reduce the interest rate they charge.  

However, if you believe that the claim against you is unreasonable or that you have not received the goods/services you ordered, you can file a complaint. Debt collectors cannot proceed with the collection process until the dispute between you has been settled. 

Refinancing debt collection debts secured on residential property

If you don't have the money to pay off your collection debts, refinancing with a mortgage as collateral may be a solution. In this case, we incorporate your debt into a new mortgage to be paid over 25 years. If you have credit cards or consumer loans that have gone into collection, the interest rate you get with refinancing will usually be more affordable than you have today. This helps you lower your monthly costs and can help you regain control of your finances.  

We also work with you to set up a payment plan. That way, you can pay off your debts without having to worry about late payments or foreclosure.

Read more about refinancing.

Avoid payment defaults

It is important to avoid payment defaults as these often lead to automatic rejections by banks. Payment remarks or active debt collection cases do not have to be an obstacle for you to get a loan from Kraft Bank. Get in touch if you need help with your finances!

Read more about refinancing

All about refinancing

Financial first aid - refinancing

This article is part of the category Economic first aid , a collection of articles that deal with topics related to a strained economic situation, such as reminders and collection, payment notices, garnishments and forced sales. Read more about Financial first aid

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