B2B Debt Collection Laws: A Creditor's Comparative Guide

The most important distinction in B2B commercial debt law is the one that many creditors’ legal teams initially miss: the US Fair Debt Collection Practices Act (FDCPA, 15 U.S.C. §1692) does not apply to commercial B2B debt. It covers only consumer obligations incurred for personal, family, or household purposes. The same applies to the UK’s FCA CONC rules and to EU consumer credit directives — all B2C statutes, none applicable to commercial receivables between businesses. B2B commercial debt is governed by a separate and in many respects more powerful framework: EU Directive 2011/7/EU (automatic ECB+8pp interest plus €40 per invoice across all 27 member states), CISG (default law for cross-border goods sales between parties in 95+ contracting states), Brussels I Recast (EU judgment enforcement without exequatur), national commercial codes, and jurisdiction-specific licensing regimes. The practical consequence: B2B collection in most EU jurisdictions is faster, less constrained, and more directly enforceable than consumer collection — provided the creditor invokes the correct statutes from the first demand letter.

A CFO at a Dutch manufacturing group receives a summary from the legal team: eight overdue invoices across four markets — two German (€74,000), two French (€52,000), two UK (£63,000), and two US/California (USD 88,000). The question: what legal framework governs each cluster and what automatic rights apply today without any court filing? Germany: BGB §288(2) — base+9pp automatic from due date + €40 per invoice under Directive 2011/7/EU. France: L441-10 Code de commerce — ECB+10pp automatic + €40 per invoice. UK: Late Payment of Commercial Debts Act 1998 — BoE+8pp automatic + £40/70/100 per invoice. California: no automatic statutory interest equivalent — but DFPI-licensed agencies are mandatory for any third-party collector; CPRC §16.004 sets a 4-year limitation. FDCPA applies to none of these files.

ECB+8ppEU Dir.2011/7 floor — all 27 states

FDCPADoes NOT apply to B2B commercial debt

CISG95+ states — default for cross-border goods

The Core Distinction: B2B Commercial Debt Sits Outside Consumer Statutes

FDCPAUS federal — B2C only15 USC §1692 — consumer debt only, not B2B

CISGCross-border goods95+ contracting states — Art.78 interest

Brussels IRecast 1215/2012No exequatur — EU judgment direct enforcement

Directive2011/7/EUECB+8pp + EUR 40 — 27 states minimum

RDGGermany B2B licence§10 RDG registration required even for B2B

B2B legal framework — 3 pillars

1

Identify the correct rulebook: commercial not consumer

FDCPA (US) — B2C only. FCA CONC (UK) — consumer only. EU consumer directives — B2C. B2B commercial debt governed by: commercial codes, Late Payment Directive 2011/7/EU, CISG, Brussels I Recast, state licensing statutes (RDG, WKI NL, Decree 96-1112 FR, CA DFPI).

2

EU Late Payment Directive 2011/7: automatic B2B rights

Payment terms ≤60 days mandatory. Default from 30 days after invoice/delivery. ECB+8pp automatically — Germany: base+9pp (§288(2) BGB), France: ECB+10pp (L441-10 Code de commerce), UK: BoE+8pp (Late Payment Act 1998 tiered: GBP 40/70/100). EUR 40 per invoice — no proof needed.

3

Cross-border framework: CISG + Rome I + Brussels I Recast

CISG governs cross-border goods sales by default (95+ states, opt-out in writing). Rome I (593/2008): law of seller’s habitual residence if no clause. Brussels I Recast: Art.7(1) — place of performance jurisdiction + abolished exequatur. EOP (1896/2006): EU-wide enforceable title from single filing.

Your UK subsidiary has a EUR 180,000 invoice overdue 94 days against a German buyer. Your Texas branch is chasing USD 220,000. Before either file moves, confirm: which rulebook governs which claim? FDCPA doesn’t apply. EU Directive 2011/7 does. CISG may. Brussels I Recast applies. Know this before the first demand letter.

Statutory Interest Rates B2B by Jurisdiction

CountryB2B default interestSource

Germany

Base+9pp

BGB §288(2) — highest EU mandated rate — automatic from due date

BGB §288

France

ECB+10pp

Code de commerce L441-10 — highest practical rate in EU

L441-10

EU floor

ECB+8pp

Directive 2011/7/EU — minimum for all 27 member states

Dir.2011/7

UK

BoE+8pp

Late Payment of Commercial Debts Act 1998 — tiered compensation GBP 40/70/100

Late Payment Act

Spain/Italy/NL

ECB+8pp

National transpositions — Ley 3/2004 (ES), D.Lgs.231/2002 (IT), BW 6:119a (NL)

National laws

California DFPI

Licensed required

SB 908 eff.Jan 2022 — first US state to license commercial B2B collectors

CA Fin.Code §100000

What laws govern B2B debt collection?

B2B governed by: EU Directive 2011/7/EU (ECB+8pp + EUR 40 — automatic, 27 states). CISG for cross-border goods sales (95+ states). Brussels I Recast for EU jurisdiction and enforcement. National commercial codes. Licensing regimes: RDG (Germany), WKI (Netherlands Apr 2024), Decree 96-1112 (France), DFPI (California). FDCPA does NOT apply to B2B.

You know the debt is real. What you need now is someone on the ground in the right jurisdiction who can make it cost the debtor more to ignore it than to pay it. Contact Cosmopolite for a free case assessment. No win, no fee.