A forgotten invoice amount or a late payment can lead to unpleasant mail from the debt collection office sooner than you think. But don't panic - with the right knowledge and quick action, you can deal with the situation effectively. Here you can find out how to respond to a payment order and efficiently remove entries in the debt collection register.
What is debt collection?
In short, debt enforcement is a procedure in which a creditor attempts to collect an outstanding debt with the help of the state. This can lead to the seizure of assets or attachment of earnings if the debtor is unable or unwilling to pay.
Entry in the debt collection register - What now?
A debt enforcement entry is made immediately and normally remains in place for five years. Under certain circumstances, however, you can apply to have the entry cancelled or not disclosed in order to protect your creditworthiness.
Recognisable signs of debt enforcement
The official starting signal for debt collection is the payment order, which you receive either directly from an official or by post. It is important to know that a reminder from a debt collection company does not constitute debt enforcement. Official debt enforcement is always initiated by the debt enforcement office.
What should I do if I receive a payment order?
If you see no reason to settle the claim:
1. make a legal proposal:
If you consider the claim to be unjustified, it is crucial to lodge an objection within ten days of receiving the payment order. This immediately interrupts the debt collection proceedings and gives you the opportunity to defend your position.
2. request for non-disclosure to third parties:
If, even after a waiting period of three months, you still consider the debt enforcement to be unjustified, you have the option of submitting a request to the debt enforcement office that issued the payment order not to disclose it to third parties. This can be done verbally or in writing. However, the written form is recommended in order to avoid misunderstandings. A Sample letter can be helpful here.
Costs and procedure
Fees:
Please note that a fee of CHF 40 will be charged regardless of the decision on your application. This is in accordance with Art. 12b of the Fees Ordinance to the Debt Enforcement and Bankruptcy Act (GebV SchKG).
Creditor proof:
Once your application has been submitted, the debt enforcement office gives the creditor 20 days to prove the legitimacy of their debt enforcement proceedings, for example by submitting a request to open proceedings or filing a civil action. If the creditor does not provide such proof within this period, your application will be accepted and the debt enforcement will no longer be publicised to third parties.
Important information on debt enforcement entries
Entries in the debt collection register:
As mentioned above, debt enforcement leads to an immediate entry in the debt enforcement register. The option of non-disclosure after three months without activity by the creditor helps to protect your creditworthiness by making the entry invisible to third parties, although it remains formally in place.
If you recognise the claim:
Pay the amount including the debt collection costs within 20 days. Direct payments to the debt collection office incur additional costs, so it is advisable to settle directly with the creditor. If you are unable to pay, visit a debt counselling centre as soon as possible and try to agree an instalment payment.
Cancellation of debt collection entries
Even if you have paid a claimthe claim is clearly unjustified and you have ensured that no one learns of an unjustified debt collection: The entry in the debt collection register is not deleted automatically.
How can I delete it anyway?
Five years of waiting:
After five years, the entry is automatically deleted from the register. So if you are not planning to look for a new home, find a new job or take out a loan in the next five years, you can simply wait and see.
Agreement with the creditor:
If the creditor withdraws the debt collection, it is no longer visible on the extract. You can agree with him in writing that you will pay the claim and he will withdraw the debt enforcement proceedings in return. But you cannot force the creditor to do so. You can use our Sample letter use.
Judicial cancellation:
Debt enforcement can also be cancelled by filing an application or an action with the court. Disadvantage: The legal process costs money. You should also seek advice from a lawyer before taking legal action.
No reminder required
It is important to know that creditors are not obliged to send reminders before debt enforcement proceedings. It is therefore advisable to settle outstanding invoices promptly in order to avoid debt collection.
Further information: Request for information
In accordance with Article 8 FADP, any person, regardless of age, place of residence or nationality, can request information about their stored data. The attached sample letter will help you to make this request. It is not addressed to the debt collection office, but serves as an example for requests to third-party companies such as debt collection agencies. (Link to download)
A payment order is no reason to panic, but it does require Quick and considered action. Whether you are making a legal proposal, settling the claim or seeking advice It is important that you become active. With the the right steps you can minimise negative consequences and even successfully contest entries in the debt collection register. Stay informed and act prudently to protect and improve your financial situation.