Debt collection companies have the legal right to report a claim to the Schufa, but only if a court judgment is available. Therefore, for the consumer, this does not necessarily mean that a reminder from debt collection immediately results in a negative Schufa entry . Nevertheless, it is important to pay attention to a few things with debt collection and Schufa so that you do not unnecessarily build up further debts .
Is there a connection between debt collection and Schufa?
Schufa is a different institution than a debt collection company. Schufa is a credit agency that collects data from consumers. The credit agency has partners such as banks, insurance companies, telephone companies, energy suppliers and even department stores. The Schufa also uses the data that are noted in the debtor registers of the district court. This gives companies information about a customer's solvency. If there is now an installment failure or other claims, this can lead to a negative Schufa entry. However, this entry requires an unpaid invoice. There must then be a court judgment or a payment order. There is actually no connection between debt collection and Schufa. However, debt collection companies put the customers under pressure by threatening a negative Schufa entry if the outstanding claim is not paid. In general, however, a debt collection company is not allowed to make an entry in the Schufa. Above all, not if the requirement is not clear.
Debt collection company works with credit agencies
A professional debt collection company cannot do without Schufa and other credit agencies. But how does the cooperation between debt collection and Schufa work? Anyone who lags behind in paying bills will receive a reminder from the creditor after a while. Nowadays, however, many companies outsource receivables management to a debt collection company. Depending on how seriously this debt collection agency works, the first reminder threatens to report the claim to Schufa. The debtor will want to avoid this and pays. In doing so, it is often not considered and checked whether the claim is also legal. Thus, the Schufa serves as a means of pressure. But there are quite a few debtors who actually receive a wake-up call and pay after this threat. The negative entry in the Schufa creates a lot of inconvenience. So there can be serious difficulties when a loan is needed.
This makes it clear that every debt collection company cooperates with a credit agency. It is important with a debt collection that it must not put the debtor under pressure and threaten with a Schufa entry . The prerequisites with which a debt collection company can report to the Schufa are regulated very closely.
Does a reminder from a debt collection company automatically mean a negative Schufa entry?
Debt collection and Schufa are often very unpleasant affairs for debtors. A bad Schufa limits the credit chances and debtors are often put under pressure with a debt collection. But a debt collection company must not put the debtor under pressure by threatening a negative Schufa entry. Namely, only the contractual partners of Schufa are allowed to make an inquiry. There are certainly debt collection companies that are not a contractual partner of Schufa. 1 A negative Schufa can only arise if there is a claim through a legally binding or only provisionally enforced judgment. Even if there is a debt instrument under Section 794 or the Code of Civil Procedure. This also includes a claim under Section 178 of the Insolvency Code, which the debtor did not dispute.
In addition, the person concerned should have recognized the claim. There must also be a period of four weeks between the first reminder and the transmission. Therefore, debtors should not be afraid of debt collection and the Schufa. Even if the debt collection were a contractual partner of Schufa, it is often sufficient to dispute the claim and no entry may be made.
With this approach, it is important to ensure that there is proof of access, i.e. a registered letter, should there be difficulties with the collection and the Schufa.
What can you do to prevent debt collection from receiving a negative Schufa entry?
A collection procedure and a Schufa entry are very common processes in Germany. If debtors have received a reminder from a debt collection agency and this is not legal, the debtor should act immediately. So should be checked first. whether the claim asserted with the reminder is wrong. If this is the case, an objection must be made in writing. It is important that the objection is sent to the company by registered mail with acknowledgment of receipt. The objection can even be sent multiple times, by registered mail, by fax or by e-mail. The more it can be proven that the objection was actually sent, the better the situation then looks.
It should be clearly stated in the letters that the requested amount will not be paid. Reasons should also be given. You can also set a period of three weeks from receipt. Confirmation that the claim was unjustified should then be received within this period.
A debt collection letter does not automatically create a Schufa entry
Debt collection and Schufa are institutions that often unsettle a debtor. With a debt collection procedure and a Schufa entry, there are certain rules that must be observed, because a negative Schufa entry does not exist overnight. There are many ways to counter debt collection and Schufa. Still, you shouldn't take any chances and pay your bills on time. Should a debt collection procedure and a Schufa entry nevertheless arise, the creditor or the debt collection company should be contacted immediately.
1 consumer advice center on "Debt collection: How to recognize dubious claims"