Debt collection in Finland - Guidance from our specialized lawyers

Debt Collection in Finland

Updated on Monday 09th January 2023

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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. You can also get in touch with our immigration lawyers in Finland if you are interested in applying for residency.

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

We also have immigration lawyers in Finland, should you want to move here. The Immigration Service makes decisions regarding the acquisition, maintenance, and loss of Finnish citizenship as defined by the Act as well as the assessment of citizenship status. If you need guidance on obtaining or retaining your Finnish passport, you can rely on our lawyers who have extensive experience in immigration cases.

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.

We can also advise on immigration to Finland. One of the prerequisites for obtaining a Schengen visa, as per EU visa regulations, is that the applicant must depart the Schengen region before the visa expires. Due to this, a person who arrived in Finland in order to apply for residency in Finland or to await the outcome of a pending residence permit-related matter cannot be given a visa. The family members of Finnish citizens are likewise covered by this.

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.
In case you need assistance in this matter, do not hesitate to contact our team of Finnish lawyers. You should knos that our team of local lawyers can help you in a wide range of legal issues, from company registration to immigration to Finland.