The purpose of the Public Notice
The purpose of Public Notice is to urge the customer to pay the overdue receivable under the threat that non-compliance may lead to publishing the matter and marking it to the credit information register.
Publishing means that the failure to pay is publicly announced. Threat of publication of the notice acts as a deterrent for the customer who wants to keep their credit information clean.
What does Public Notice mean?
Public Notice is a publicity threatening demand for an overdue receivable, used in corporate debt collection. A publicity threat means that non-compliance can be published on the protest list.
If the Public Notice is not paid in full by the due date nor the payment has been agreed upon before this, the Public Notice will be protested, which will result in a non-payment entry in the company’s credit information. Even sending the Public Notice can also cause an entry about the delayed payment already.
When Public Notice is a suitable option?
Public Notice is a suitable option when the customer is solvent but has not paid the debt by the due date. Public Notice may only be used to collect an overdue, clear and undisputed claim. Public Notice can only be set up for companies and cannot be used to collect consumer receivables.
The phases of Public Notice
The Public Notice can be roughly divided into two phases: setting and protesting the Public Notice. The debt collection agency sets up Public Notice. Protesting it can appear either by the debt collection agency or the creditor itself.
What does Public Notice protest mean?
Public Notice is based on cooperation between the debt collection agency, the credit information company and the creditor. When a Public Notice is set, the debt collection agency forwards the information to the credit information company, which in turn informs the customer that Public Notice has been set, and makes a payment delay entry into the credit information.
Public Notice may be published or reported to be marked in the credit information register no earlier than 14 days after sending it and latest 60 days unless otherwise agreed in writing or electronically between the creditor or debt collection agency and customer.
If payment is not received, the debt collection agency can protest the Public Notice, which leads to a non-payment note being recorded in the customer’s credit information. Public Notice offers a flexible and efficient way to collect business receivables.
Limitations of Public Notice
The use of Public Notice may affect the company’s reliability and ability to obtain credit, as late payment information can give a negative picture of the company’s financial situation. The use of Public Notice has certain limitations and is only intended for the collection of overdue, clear and undisputed claims.
Let Kredinor help in all phases of debt collection
We are your partner in all matters related to open receivables, up to legal actions if necessary. We handle the debt collection efficiently, reliably and in such a way that the customer relationship can still continue in the future – no matter whether your client is a consumer or business.
We offer at your service a modern and customer-friendly service that also includes active telephone collection. You can easily follow all actions taken and the status of assignments in real time. The reports you need, you will have easily and quickly.
Transparent operation, automated processes and modern systems make us a reliable and efficient partner that can produce a high-quality service even for large billing volumes.
We can flexibly agree on which part of the collection process you want to outsource. If necessary, we can also help with disputes, bankruptcy supervision and other special collection procedures. You can also use our international debt collection service in case the open receivables arise abroad.