Debt Collection Agency Sweden
Amicable Debt Collections Sweden
1. General information
Cosmopolite Collections maintain a professional collection process in Sweden, focusing on the relationships between our clients and their debtors at all times.
Our team of collection specialists carry out the collection process inhouse, contacting debtors both verbally and in writing whilst adhering to federal and state laws.
1.2. Local agents
At this time, we do not have the ability to visit debtors in Sweden. However, if the debtor wishes to visit our premises, we will gladly arrange a face-to-face meeting to discuss the situation.
Cosmopolite Collections always charge interest to debtors calculated from the base rate set by the National Bank of Sweden, plus 8% on a daily basis.
There are two alternatives:
To calculate the interest rate as agreed between the creditor and the debtor
To calculate the interest rate according to Swedish regulations based on the reference rate fixed by the National Bank of Sweden (plus 8% per year).
This rate is fixed twice a year on 1st January and 1st July.
The second alternative will always occur if the interest rate is not agreed between the creditor and the debtor.
From a cultural point of view, Swedish debtors are used to paying late payment interest.
1.4. Debt Collection Costs Sweden
In Sweden, debt collection costs are chargeable to debtors, representing the creditor’s claim for late payment. SEK 180 can be charged for a collection file and further costs will be added if the files are assigned to court.
From a cultural point of view, Swedish debtors are used to paying debt collection costs.
2. Legal Debt Collections Sweden
2.1. General information
Entering into legal proceedings is only possible with a fourday notice period to the debtor that must include:
- The name of the creditor
- The specifics of the debt (e.g. interest rate, date and amount)
- A warning that non-payment will lead to legal action and further costs.
The debt needs to be proven to be enforceable. If the debt is undisputed, a bailiff will issue a payment order, which equals a judgment.
If the debtor disputes the debt, the file is assigned for trial handling, regardless of the reason or the seriousness of the dispute. If a judgment is obtained and the debtor does not pay accordingly, the file will be handed over to the bailiff’s court for execution.
Wage retention is the most effective measure used by the enforcement office.
This requires the debtor’s employer to withhold a certain portion of the debtor’s salary so that it can be sent to the bailiff, who can then advise the creditors on the paid amount.
2.2. Required documents
In order to apply the legal proceedings, Cosmopolite Collections need copies of the contract, invoices and a clear statement of account indicating payments and credit notes that have been paid against the outstanding invoices.
In the case of a regular lawsuit procedure, copies of the complete contractual documentation between the creditor and the debtor should be available, including the contract, original power of attorney, orders, order confirmations, delivery notes and invoices.
Every step of the trading relationship should be provable by documentation. In case of dispute, all notes of conversations between the creditor and the debtor should be kept and given to our lawyers.
In the case of verbal negotiations, we need the visit or negotiation reports and the names of any witnesses.
2.3. Lawsuit in Sweden
The regular lawsuit procedure is either initiated directly after the amicable collection has failed due to a dispute by the debtor or directly following the legal dunning procedure after the debtor has appealed. Usually a written pre-procedure is issued.
Both the plaintiff and the defendant exchange opinions and proofs by letter until the judge is confident that all relevant information needed to judge has been received.
In this case, a hearing is scheduled, during which both parties have to be present. After the verbal hearing, the judge sets a date to publish the final judgment.
The parties will be informed about the outcome in writing by the responsible court.
2.4. Debt Collection Costs Sweden
SEK 160 can be charged for a collection file and further costs will be added if the file is assigned to court.
There are different fees that can apply during legal proceedings, depending on the outstanding amount; and there is also a range of possible fees for each legal action, making it difficult to predict the total costs.
In addition to this, costs for witnesses and/or experts might also arise. A cost estimation can be provided on a case-by- case basis should legal action becomes necessary.
2.5. Expected time frame
The average duration of a legal process can be 12 months or longer, depending on the complexity of the case and the availability of the judge and the lawyers on both sides.
2.6. Interest and costs in the legal phase
Extrajudicial interest and costs can be claimed as part of the outstanding debt during the legal proceedings.
Normally the losing party has to bear the costs of the legal proceedings.
And when there is a legal settlement, the parties normally bear their own costs for court fees and lawyers’ fees.
3. Insolvency proceedings Sweden
3.1. General information
The aim of the insolvency proceedings is to pay out all creditors with the same percentage of their debts by liquidating the assets of the debtor company or collecting the enforceable income of the individual who is declared bankrupt.
There are three insolvency proceedings in Sweden:
- Enforced dissolution
After the debtor or a creditor files for insolvency of the debtor, a preliminary liquidator is appointed to check if sufficient assets are available to cover the costs of the proceedings and the liquidator.
If these costs are deemed to be covered, then insolvency proceedings will start and a liquidator will be appointed.
If this procedure is not followed, the court will reject the declaration of bankruptcy due to insufficient assets.
The creditors can then lodge their claims and take back any goods delivered under retention of title. After the proceedings start, lodging claims is possible within a given deadline.
The liquidator can either accept a lodged debt or dispute it. If the claim is disputed, the creditor may only file a claim in court to prove the justification of their claim when further documentation received does not convince the liquidator to confirm the debt.
At the end of the proceedings, all creditors with confirmed debts will receive a dividend, provided there are enough assets in the estate. Often with estate insolvency proceedings, no dividends are paid.
3.3. Required documents
In order to lodge a claim on behalf of our client in undisputed claims, Cosmopolite Collections only need copies of the invoices.
3.4. Expected time frame and outcome
The expected time frame for an insolvency estate in Sweden is one to three years.