Debt collection Finland, Creditor Finland

Debt Collection in Finland

Updated on Friday 05th June 2015

The principles of the good collection practices are defined in the Debt Collection Act (in force since 1999). According to this it’s strictly forbidden to jeopardize the debtor’s privacy protection, provide incorrect information regarding the aftermaths of the failure to pay the debts or cause unnecessary expenses and difficulties to the indebted.

The procedure of debt recovery in Finland begins with a notification that must be sent no later than 14 days from the moment the amount became due. The notification must state the name and the address of the creditor, the reasons why the notification was send and the due amount, the address where the payment can be made and the due date for this payment, details regarding the contact person if the debtor has questions, debt collection charges and the deadline for submitting observations.

At least two payment reminders must be sent before contacting a debt collection agency.

In the last reminder, the creditors must state the consequences of the non-payment, including the fact that a debt collection agency will be contacted.

If the above measures have no effect and the debtor refuses to pay, the creditors are advice to contact a debt collection agency which will provide all the support necessary in order to recover the amount.

First of all, the agents are sending a notification to the indebted containing the name of the creditor and details regarding the debt collection agency, the reasons why the notification was send, information regarding the receivables (including the capital, interest, interest on arrears, collection expenses and their total amount), the modality of payment and the recipient of the payment, the modality of submitting observations and the person in charge with receiving it.

If the above steps have no success, a legal debt collection procedure may begin in Finland, if the creditors agree with this. The legal debt collection is initiated by the debt collection agency or by a law firm by sending a complaint at the district court. The decision taken by the court must be applied immediately and if the debtor is still not paying the amount it’s transferred to execution. During the execution, all the debtors’ assets are used in order to cover the debt, the collection expenses, the execution fees and other legal expenses.

The debtors must be aware that if it refuses to cover the claims, besides the due amount other expenses can be added such as the debt collection expenses, interest on arrear and court costs.