How is a debt collection made?
The procedure is as follows.
- You have not paid the bill or invoice for the purchased product or service.
- The creditor you owe money to first sends a request for payment with a payment period of 14 days.
- If the bill is not paid after 14 days, the application may be sent to a debt collection agency.
- After that the debt collection entity sends you betalingsanmerkning (a debit note). However, it is obtained only after the contract with the debt collection agency is terminated by non-payment of the debt collection.
What happens if you receive a debit note (betalingsanmerkning)?
For you, receiving a debit note primarily means that you will not receive more loan offers from banks. If there is a larger amount owed, the debt collection agency may deduct the amount owed from your monthly salary. And this is a big deal already, because it means that you will have less money at your disposal - for example, for paying for a mortgage, or for everyday expenses.
The following information is even more important: if you have a house mortgage and you are unable to pay it back, the bank may require you to compulsorily sell your real estate, car, or other property that can be pledged. If you object to this, in the worst case you may be evicted under the verdict or order of the court that decides to hand over and empty the apartment.
What institution sends betalingsanmerkning?
Betalingsanmerkning is mainly sent by private debt collection companies. NAV innkreving, Skatteetaten and the State Debt Collection Agency can also provide information about your debt. The company you owe money to - the creditor - uses the services of a private debt collection agency in accordance with the law on debt collection.
How to get rid of the debit note?
Betalingsanmerkning will be deleted when you pay off the creditor to whom you owe money. In the event of debt repayment, the creditor is obliged to remove the debt collection immediately. This may, of course, take a day or two. What may stay in the system a little longer are often payment remarks from pledges on real estate, car, scooter, boat etc.
Problems with debt collection repayment?
If you notice that you have a problem paying off the debt collection, contact the creditor and explain your situation. You can contact a debt collection agency and enter into a payment agreement with them. Most debt collection agencies are ready to conclude an agreement, it may be to postpone your payment for the next payday or to split your debt into several lower repayment amounts. The most important thing is not to ignore the request for payment, as for each debit note that is not paid, there will be added additional fees that increase the original amount owed. Remember: contact your creditor in advance - before you receive any further debit notes, so you will not worsen your financial situation.
What to do when I cannot afford the installment?
If you find yourself in a difficult financial situation, for example by losing your job or taking a longer sick leave, first of all, contact the lender and inform about your situation. Banks are often understanding and can postpone installments for up to 3 months (avdragsfri periode).
Repeated failure to pay installments and lack of contact with the bank may lead to a situation where the lender applies for a debt collection claim (inkassokrav). After your application for debt collection has been reviewed and deemed valid, your case is referred to a debt collector who finally approves the debt collection claim. Then the debit note (betalingsanmerkning) is registered. From now on, the debt collector is going to deduct a part of your salary towards paying off the debt until it is fully paid.
It is also worth remembering that just by returning to your country you will not solve your problem with the repayment of the loan taken in Norway. Norwegian debt collection companies cooperate with debt collectors outside Norway, looking for every opportunity to recover money.