Domestic debt collection


Invoices are not paid on time?

Trust the specialists to handle the problem and concentrate on the main practices of your company.


Generally the client tries to handle the debtors on their own and usually the task is carried out by the vendor (who has provided the debtor with the service/merchandise) or the finance department (accountants, financial directors). This causes work overload for employees and brings more harm than benefits.


Already in the beginning of the 19th century European salesmen trusted specialists, whose main role was to protect salesmen from dishonest salesmen by claiming the unpaid invoices, to handle their debts. The main purpose for such an agreement was to save valuable time that could be spent on concentrating on the main practice – selling the merchandise. We advise you to follow this example. Collaborating with us in this matter is simple, transparent and effective. We will do everything in our power to minimize or liquidate the charges of the service.


Collaboration with European Legal Office OÜ is based on the disclaim contract or the liaison agreement – the most usual and simple forms of agreement in the law of obligations. The rights and obligations of both parties are equal and financial obligations must only be fulfilled when a satisfactory outcome has been reached. That being that if the unpaid sums from the debtor have not been collected the client has no obligation to cover the costs of our work.



What is the service charge for debt collection service?


Our diligent collective is highly motivated and one of the most influential reasons for that is that we only gain if we have managed to claim the debt from the debtor partially or fully. The service charge is an agreed % from the paid principal sum and the additional claims (overdue charge and claiming charges) and is paid separately. The % has been formerly agreed upon with the client.


The service charges of the principle debt are 5 – 40%.
The service charges based of the additional claims (penalties, other damages) are usually 50%.


The 20% VAT effective in the Estonia is added to the charges.


What do we take into account in establishing the service charges?


Every debtor is different and having a fixed service charge based on the range of sums owed and on the period the debt has existed would be unprofessional. Therefore, when deciding on the service charges we take into account the background of the debtor, the period the debt has existed, the correctness of the documents and the sum that is owed. This kind of analysis enables to decide upon the level of complication of the claim at hand and a fair charge. In case of numerous claims we also take into consideration the specificity of the field of practice, the average period of debts and the sums owed. The shorter the period of debt, the less resources we use to claim it and the cheaper the cost is for the client.


How is the process of claims carried out?


It is important to us to perform the procedures of claims in compliance with the legislation effective in Estonia and without harming the reputation of the client and the existing business relation with the debtor. All procedures are carried out on a professional level following the given example:


  1. A substantiated demand note is compiled which is sent to the debtors location of residence. An additional e-mail containing information about the debt is sent.
  2. In 4 days the debtor is contacted by phone to ensure that the demand note has reached the debtor. The circumstances and possible consequences of not paying the debt are explained. In case of additional questions our specialist shall provide exhaustive replies and shall agree on the process of paying the debt. The due date for the payment is fixated in writing. Dependant on the sum of the debt we also offer the debtor a possibility to arrange a payment schedule.
  3. If the payment has not been received by the date fixated, the debt will then be exposed in credit information, debt registries and other sources. The debtor will be contacted and informed of the completed procedures and possible consequences (credit capacity etc.) A new due date will be fixated and another demand note sent with the added additional claims.
  4. If the claim is still not responded to, the debtor shall be contacted again in order to clarify the reason. The due date will be extended and a conditional guarantee will be asked for. If necessary, the debtor will be asked to come to our office or the office in the place of the debtors’ residence. A new demand note with added additional claims will be sent.
  5. In case of disregard to the additional agreements, the debtor will be given a warning notifying them of possible legal proceedings and given a last chance to return the money cognovit. A new demand note with the added additional claims will be sent.
  6. If the debtor does not react to the warning of legal proceedings by paying the debt, the client will be informed of the process and the gathered information. The perspective of legal proceedings will be evaluated and the debt collection procedures completed.
Dependant on the background of the debtor, the negotiations in practice and the specificity of the field of practice of the creditor the scheme of the procedures might slightly differ from the above.