Written Payment Requests and Pre Action Letters

First summons letter

The first step we will take is to write to the debtor, telling him that unless the debt is paid by a certain date, further action will be taken. A copy of the statement of account showing the final amount due (in order to comply with the draft protocol for debt recovery litigation) will be attached to the reminder letter.

Sending out reminders and collection warning letters by an attorney are significant signals for the debtor. These documents certainly carry considerable weight in the debtor's eyes, and will therefore be viewed more seriously by him. Pre-court settlements of smaller claims are for the most part processed without legal action due to economic considerations.

Interest for late payments in Germany

German debtors are obliged to pay interest for late payments. The interest rate is fixed by law and is calculated from the base rate set by the German national bank plus 8 % on a daily basis. Higher interest rates have to be proved by a confirmation of your bankers.

Second and ultimate summons letter

In case the debtor does not react at all, a second, ultimate reminder letter will be issued with the clear statement that litigation will be started. That makes it very clear to the debtor that there is no further delay possible and that you are serious enough to enforce your claim.