Received a debt collection letter? Check first, then pay.
A debt collection letter is not a judgment — it is a claim on letterhead. Some claims are justified, many inflated, some simply invented. Here is the calm plan for the next few days, step by step.
The five-step immediate plan
Stay calm and sign nothing; check sender and claim in the register of legal service providers; work out the costs against the legal caps; if justified, pay or agree instalments in writing; if unjustified, object in writing with a deadline to agency and creditor. A disputed claim may not be reported to SCHUFA (Section 31 BDSG).
These deadlines apply
14 days to object to a court payment order; the 100-day rule shortens SCHUFA storage to 18 months if you settle in time; most everyday claims become time-barred after three years — but you must raise the defence yourself.
How FIAON supports you
FIAON is not a debt collector and not legal advice — FIAON is your cross-check: obtain the reports, hold every entry against the rules, take on letters and deadlines. Justified, lawfully reported entries stay.
Frequently asked questions
Do I have to react to a debt collection letter at all?
Ignoring is the worst option — but reacting does not mean paying. Reacting means: check, and depending on the result pay or object in writing. Anyone who does nothing at all risks a court payment order, further costs and in the end a negative entry.
May a collection agency simply make a SCHUFA entry?
No. Section 31 BDSG requires among other things two reminders at least four weeks apart, timely notice of the impending report — and the claim must not be disputed. Anyone who objects in time and with reasons blocks the report until the matter is clarified.
What happens if I really cannot pay the claim?
Get in touch in writing and propose realistic instalments — collection agencies almost always accept, because a paying instalment is worth more than a title. Important: only promise amounts you can definitely keep. A failed agreement worsens your position.
Are the high collection fees lawful?
Often not in full. The remuneration is capped; for small, undisputed claims the limit is low. Demand a breakdown and pay the principal claim plus the permissible costs first — inflated items you may dispute.
How do I recognise fake debt collection?
Pressure with unrealistic deadlines (24 to 48 hours), payment only to foreign accounts or by voucher card, no entry in the register of legal service providers, no traceable claim. When in doubt: do not pay, do not call, demand evidence in writing.
I already have an entry — what now?
Check whether it was lawfully reported (two reminders, notice, not disputed) and whether the deletion deadline is running or has expired. Settled claims are deleted after three years, after 18 months if settled within 100 days. FIAON checks that for you — the rules are in the guide on removing an entry.