The debt collection process

What happens during the debt collection process?

Customers experiencing financial difficulties are encouraged to make contact as early as possible—either with the original creditor or the debt collection agency. Once a case is transferred to collection, additional costs for late payment may apply. Below is a general overview of the process. Please note that variations may occur in individual cases.

• 1. Invoice: An invoice is a document confirming a transaction between two parties, including details of the goods or services provided, the amount due, and payment terms. The due date specifies when payment must be made.
• 2. Reminder: If payment is not received by the due date, a reminder may be sent. Issuing a reminder is not mandatory under Norwegian law. If sent, it must provide at least 14 days for payment. Any reminder fee can only be charged at least 14 days after the original due date.
• 3. Collection notice: A collection notice is issued before the case is transferred to a debt collection agency and must include a minimum 14-day payment deadline. It may be the only reminder sent if no prior reminder has been issued. Late payment after this stage may result in additional costs.
• 4. Payment demand: If the collection notice is not settled, the case is transferred to collection. A formal payment demand is issued by the debt collection agency, outlining the claim, the basis of the debt, complaint procedures, and next steps. Late payment may result in further costs.
• 5. Legal action: If payment is still not made, legal proceedings may be initiated. The case may be brought before enforcement authorities or the conciliation board, resulting in additional costs due to the involvement of legal processes.
• 6. Payment remark: A payment remark may be registered 30 days after legal action has commenced. This means the debtor is registered with a credit information agency, which may lead to restricted access to credit and other services. For businesses, registration may occur earlier—typically 30 days after the case is transferred to collection.
• 7. Conciliation proceedings: In case of dispute, the matter may be brought before the conciliation board. This is the lowest level of civil court in Norway, aiming to resolve disputes efficiently and cost‑effectively. Decisions are legally binding.
• 8. Enforcement (attachment of assets): Following a legally binding decision, enforcement authorities may recover the debt through wage deductions, benefits, or liens on assets such as property. Additional costs will apply.
• 9. Forced enforcement (sale of assets): If the debt remains unpaid, enforcement may include the forced sale of assets, such as property. This is typically a last resort and involves significant costs, though in many cases, an agreement is reached before this stage.