Debt collection Costs in France important news.

Since 2012 it’s foreseen in the French law that the collection costs, lawyer and success fee, have to be charged to the debtor.

In the first years after this new law we had to face massive opposition from the judges. You have to know that concerning business and commerce the judges are not professional ones but local entrepreneurs elected from their pairs.

In numerous judgments the commercial courts refused to take consideration about the debt collection costs.

Till the year 2014 there was nearly no single judgment charging the debtors with the collection costs.

The Commercial Court from Paris was leading in this matter refusing systematically the demands to cover for the creditors the collection costs.

Since 2016 the situation is moving very fast and a lot of judgments agree to charge the collection costs including the success fee to the debtor.

The Courts from Paris changed completely their minds and accept in nearly every file to charge the collection costs to the debtor.

But the creditor has the obligation to provide to the Court all the information concerning the costs he has to pay including the agreement with the debt collection company.

The major concern is hat the creditor is obliged to start a litigation process related with costs. A great judgment is senseless if at the end the debtor has no sizable assets.

For that reason it’s necessary to get in advance a professional advice about the chances to collect the money after the running of a litigation procedure, this kind of procedure lasting in France for one to one and a half year.

The small amounts are excluded because it makes no sense to go to Court when the unpaid debt is low.

Georges Vonfelt
www.gevo.fr