Debt collection demands and payment default records

Keep this in mind 

• You are responsible for paying invoices when due, irrespective of whether you have received the invoice or not.

• If the demand you received from a debt collection agency or the Swedish Enforcement Authority is not accurate, you should file a protest.

• A demand for payment from the Enforcement Authority does not mean that you will automatically receive a payment default record. You can pay the claim or contest it if it is unfounded.

• If you do not respond to a debt collection demand from the Enforcement Authority, you may receive a payment default record.

   

You are responsible for paying your bills on time 

When you purchase something on credit with an agreement to pay by invoice, you are always responsible for paying the invoice by the due date. This applies irrespective of whether you have received the invoice or not. If your invoice gets lost in the post, for example, this does not change your obligation to pay it. If you don’t have the invoice, you need to contact the company and ask for the invoice details so that you can pay. 

If you receive an invoice that you think is incorrect, it is important that you challenge the validity of the invoice in writing, this is called disputing the claim for payment. 

How much time do I have to pay an invoice? 

There is no specific law that determines how many days you have to pay an invoice. Companies determine the terms of payment, and when you choose to purchase something from them you agree to these terms of payment. Read the terms carefully.

Some companies may give you 10 days to pay, while others may offer a longer period. Therefore, you cannot demand, for instance, 30 days.

You only need to pay if you have received what you purchased.

If you receive a debt collection demand 

Companies can turn to debt collection agencies to help collect payments. If a debt collection agency has taken over the claim, you should pay the debt to them.

Receiving a debt collection notice does not mean you will get a payment remark.

Pay on time 

Start by researching if the demand is accurate. If the demand is correct, it is important to pay within the time specified on the invoice. You should pay to the entity that sent the demand.

If the demand is incorrect, you need to dispute it.

How to dispute an invoice

A fee for a collection demand letter

The debt collection agency has the right to charge a fee for sending a debt collection demand letter, up to a maximum of SEK 180.

How much time do you have to pay a collection demand?

You must be given at least 8 days from the day the collection agency sent the claim.

You should have at least 4 banking days to pay or object from the day you are assumed to have received the claim. A banking day refers to a day when Swedish banks are open (usually Monday to Friday, excluding holidays).

Unable to pay the collection demand on time?

In case you are late with the payment, contact the agency who sent you the demand for payment. Maybe you can attempt to agree on a solution. For example, this could involve setting up a repayment schedule.

If you send in the payment a bit late, it is important that you contact the agency who sent you the demand for payment and inform them that payment is on its way. Otherwise there is a risk that the debt will be turned over to the Enforcement Authority. 

How to dispute an incorrect collection demand

If the debt collection demand is unfounded, you can dispute (contest) the demand for payment. Send your dispute to the debt collection company that sent the demand. Describe what you think is incorrect.

There must be objective reasons why you are not paying, for example that the demand is for a product that you did not order. Not being able to pay is not a good enough reason. 

It is advisable to make contact with the debt collection agency documentary form, for example by e-mail. It is important that you have a written record of evidence that you objected to the claim and why.

The Authority for Privacy Protection (IMY) monitors the compliance of debt collection agencies

The Authority for Privacy Protection (IMY) licences and regulates debt collection agencies. If you have questions about how a debt collection agency can operate, you obtain more information from their website. You can also find contact details for their Information Service. 

Information about debt collection is available on the website of the Authority for Privacy Protection  

If you receive a demand from the Enforcement Authority 

Sometimes companies turn to the Enforcement Authority for help in collecting debts. The Enforcement Agency is a government authority that helps companies collect their money.

If the company has applied to the Enforcement Authority, you will receive an envelope from the Enforcement Authority with an injunction for order to pay.

This is what you do:

1. Confirm that you have received the letter

The first thing you need to do is acknowledge to them that you have received the letter. You can do this either by signing the Acknowledgement of service and sending it back to the Enforcement Authority, or by telephoning the Enforcement Authority’s Customer Service line. Acknowledging that you have received an injunction for order to pay does not mean that you are acknowledging the correctness of the claim, but rather is merely a record that you are aware that the claim exists. 

2. Pay

If you agree the claim for payment of a debt is valid, you should pay the party whom you owe money to. If the request has been made by a representative, the payment should be made to them. You will also need to pay any interest due and other costs.

3. The party you owe money to withdraws the application

Once you have paid, the creditor (the party whom the money is owed to) must withdraw the petition to the Enforcement Authority. 

If the demand for payment is unfounded

The Enforcement Authority does not assess and adjudicate whether or not the company has a legitimate claim and is entitled to receive payment from you. Therefore, it is important that you tell the Enforcement Authority that you dispute (“contest”) the claim if you think it is unfounded or otherwise not correct. The letter from Enforcement Authority will tell you what to do if you do not agree that the claim is valid, and how much time you have to respond. 

What is a record of non-payment?

A record of non-payment is information at a credit reporting agency that shows someone has not paid their debts on time.

When do you get a record of non-payment?

You can only get a record of non-payment if the case has escalated to the Enforcement Authority, and you neither pay nor contest the claim. If you take no action, the Enforcement Authority issues what is called a decision (verdict). This means that the Enforcement Authority decides that you should pay what the company demands. It is only at this point that you receive a record of non-payment. If you pay or contest the claim within the time specified by the Enforcement Authority, you will not receive a record of non-payment.

Can you get a record of non-payment after disputing a claim?

If you dispute the claim from the Enforcement Authority, the company may choose to take the matter to court. If the court decides that you should pay, you will not receive a record of non-payment as long as you comply with the court's decision and pay. However, if you do not respond to the summons or do not attend the court hearing, you will receive a record of non-payment.

What does a record of non-payment mean for you?

If you have a record of non-payment, it can become difficult to, for example:

• rent a home

• take out a bank loan

• get a subscription.

Many companies perform a credit check from a credit reporting agency before deciding to enter into an agreement with you. Contact a credit reporting agency if you want to check if you have received a record of non-payment. List of credit reporting agencies on the Swedish Authority for Privacy Protection's website

How long does will the record of non-payment remain?

A record of non-payment lasts for 3 years.

Do you need advice about your personal finances?

Contact the financial and debt counseling service in your municipality if you need assistance. The counseling is free for you. A financial and debt counselor can help you overview your finances and provide practical advice if you are in debt. You can also get assistance with applying for debt restructuring. Assistance with finances, budget, and debts