Regulations Regarding the Permissible Amount of Expenses for Recovery of a Debt and the Non-reimbursable Expenses

Issued pursuant to
Section 6, Paragraph three of the Law On Extrajudicial Recovery of Debt

1. This Regulation prescribes the permissible amount of expenses for recovery of a debt, as well as the non-reimbursable expenses.

2. A provider of debt recovery services has the right to request from a debtor that he or she reimburses justified debt recovery expenses which conform to the following permissible amount:

2.1. for the preparation and sending of a written notification to the debtor, in which information regarding existence of a debt and an invitation to voluntarily carry out the delayed payment obligations have been provided, and for the activities necessary for finding out the actual contact information of the debtor, if the debtor cannot be reached - in total not more than seven euros;

2.2. for other activities additionally carried out for the recovery of debt - in total not more than 10 euros in the debt recovery process, until the debtor has carried out payment obligations in relation to the provider of debt recover services or creditor.

[29 October 2013]

3. Expenses which have arisen to a provider of debt recovery services in carrying out the following activities for debt recovery shall be considered as non-reimbursable debt recovery expenses:

3.1. communication with a debtor without conforming the requirements stipulated in the Law On Extrajudicial Recovery of Debt;

3.2. communication with a debtor within the time period determined by the provider of debt recovery services for expressing objections against existence of a debt, its amount and payment deadline after sending of the written notification referred to in Sub-paragraph 2.1 of this Regulation;

3.3. a written reminder to the debtor regarding existence of a debt, which is sent not more than once in 14 days or not more than three times during the debt recovery proceedings;

3.4. activities carried out after the provider of debt recovery services or the creditor has received payment from the debtor for payment of the debt, except cases when the debtor has paid the debt, before the debt recovery activities have reached the debtor, but the provider of debt recovery services has carried out such activities, before the provider of debt recovery services or the creditor has received the payment.

3.5. activities which are not considered objectively necessary and justified for debt recovery, as well as activities which are to be recognised as unfair commercial practice in accordance with the Unfair Commercial Practice Prohibition Law.

4. This Regulation shall come into force on 1 February 2013.

Prime Minister V. Dombrovskis

Minister for Economics D. Pavļuts

Translation © 2014 Valsts valodas centrs (State Language Centre)