How we work and what we stand for

KSV1870 Forderungsmanagement GmbH

As a debt collection service provider, we handle out-of-court debt collection on behalf of companies. In providing this service, we strengthen the liquidity and performance of companies, help to keep the economic cycle going, and ensure that fairness pays off in business. It is our conviction that services rendered must also be paid for. We want to prevent creditors from getting into difficulties as a result of their customers' unpaid invoices. Our core task is thus to quickly facilitate viable agreements between our customers and defaulting payers. We see ourselves as a mediator between different, sometimes conflicting interests. Our core competence: We reconcile our customers' expectations with the options available to defaulting payers. Respect and common sense determine our actions.

Debt collection and its purpose

A business that decides to submit outstanding receivables to us has usually already taken a number of steps to get defaulting customers to pay their invoices. A defaulting payer typically stops communicating, and the company is left with no room for manoeuvre. Handing over outstanding debt to an expert always represents an escalation – for both sides. However, both the additional costs (specified by the Fees Ordinance) and the high profile of the KSV1870 brand often compel defaulting payers to resume contact and resolve their financial difficulties.

Measures and collection period

Eighty-five percent of all cases are settled out of court. Written reminders and telephone debt collection are the most important tools available. A large number of defaulting payers respond to the first reminder: they settle their debt or sign a payment agreement. In the event of non-payment, we generally have enough information after around 8 weeks to recommend that our customers take legal action or implement debt recovery monitoring. The decision whether to file a lawsuit or not should be based on the expected outcome as legal proceedings can take up to two years. Operationally, this step is handled by a KSV1870 lawyer of trust. An order for payment is issued and then an application for enforcement can be filed. If the debt collection procedure in court is completed but there are still outstanding claims, the debt collection agency can pursue the case further. As the court’s decision is legally binding, the claim is protected from the statute of limitations for a period of 30 years.

Reminder letters: Design and content

Transparency is particularly important to us. In terms of content and design, we want the recipient to get a quick sense of what our reminder letter is about, namely the amount outstanding that needs to be paid to which creditor and within which period. The letter also provides further information, including the reason for the claim, its due date, the costs for the creditor's internal procedures, the interest rate, a breakdown of all debt collection costs incurred, and a legal justification for the debt collection costs. If several individual claims with different due dates are payable, the letter indicates at least the earliest due date. All reminders include information on the GDPR.

Personal debt collection

Digitalisation and the increased individualisation of our personal lives means that debt collectors are used only occasionally nowadays. The option of getting in touch with debtors personally is only considered if telephone debt collection and/or reminders prove unsuccessful. Whenever subcontractors are hired, they are obliged to perform the tasks they have been entrusted with discreetly and to present a debt collection card without having to be asked to do so. Once a payment has been made, a receipt is issued. Reminders are not sent to or deposited at any address other than the debtor's address. We only use reputable service providers with a business license.

Costs, fees, and capping

In Austria, the Fees Ordinance defines the maximum rates that debt collection service providers can charge for collecting third-party receivables. It is a complex piece of legislation, also because it specifies in detail which work steps and measures can be charged and the individual amounts. The most common fees are: processing fee, fee for record keeping of records, reminder fee, fee for address collection, fee for determination of the income and asset situation, travel expenses, etc. An outstanding debt of EUR 100 can therefore double or increase even more significantly. We act in accordance with the Fee Ordinance – but stop short of exhausting all the possibilities it provides. We cap the collection costs so that they remain within reasonable limits. After all, our goal is to conclude firm payment agreements and facilitate repayments to our customers.

Customer service: Cooperation and support

Our efforts are focused on KSV1870 customers and their clients. Everything we do is aimed at providing the best possible service to both and supporting them throughout the process. To create a clear focus, customer support and defaulting payer support have been organisationally separated and segregated from administrative activities. We have various service levels that ensure efficient and fast results. Digital communication was brought into the picture by expanding the meinfall.at service platform where payment agreements can be signed directly and payments can be made – 24 hours a day.

Case information and objections

We have around 15,000 contacts with defaulting payers every month. Enquiries are dealt with by telephone, e-mail, and via the digital service platform. Our employees are required to respond to written enquiries within 24 hours and no later than 48 hours. If a customer needs to be consulted for further clarification, a response may take longer. On request, enquirers are sent a list showing all the costs incurred, any payments made, and the outstanding amounts – this list is free of charge and can be requested any time. If the enquirer submits a written objection, we contact our customer and ask them for clarification. In this case, we serve as a mediator and assist in clarifying any pending issues. We are not in a position to decide on the legitimacy of the claim, however. If no agreement can be reached, out-of-court debt collection is terminated.