Decision on debt collection costs: BGH rules in favour of EOS

 

 

 

 

The Federal Court of Justice (BGH) today overturned a ruling by the Hanseatic Higher Regional Court of Hamburg from June 2023 and dismissed the claim brought by the Federal Association of Consumer Organisations (Bundesverband der Verbraucherzentralen) against EOS Investment GmbH. The BGH thus confirmed the legality of the costs claimed by EOS as debt collection fees, the amount of which is limited by law anyway. As the court ruled, even in cases in which an affiliated company is commissioned to collect the debt (‘group debt collection’), the costs claimed as debt collection fees constitute recoverable damage caused by default. The judgement is final.

‘We welcome the fact that the BGH shares our understanding of the law and has overturned the decision of the lower court,’ says Dirk Lohmann, Head of Legal Department at EOS in Germany. ‘The creditor can have the costs incurred by commissioning a debt collection company reimbursed by the debtor in the form of the debt collection fee. It makes no difference whether the debt collection service provider commissioned is an affiliated company, as the BGH confirmed today.’

The EOS Group is a leading technology-driven investor in receivables portfolios and an expert in the processing of outstanding receivables. With over 50 years of experience and offices in more than 20 countries, EOS offers smart services for receivables management worldwide. Its key target sectors are banking, real estate, telecommunications, utilities, and e-commerce. EOS employs more than 6,000 people and is part of Otto Group. For more information on the EOS Group, please go to: eos-solutions.com