Debt Recovery Letter Template for Denmark

A Debt Recovery Letter is your formal written demand for payment of money owed to you or your business under Danish law. It serves as the required first step before taking legal action through the Danish courts, giving the debtor a clear deadline and payment details while documenting your attempt to resolve the matter amicably.

The letter must follow specific Danish requirements - stating the exact amount owed, including any interest calculations under the Danish Interest Act, and providing at least 10 days for payment. Many businesses send these through registered mail (rekommanderet brev) to create proof of delivery, which becomes important if you later need to involve a debt collection agency or file a court claim.

Send a Debt Recovery Letter when your Danish business customer has missed payment deadlines and stopped responding to regular invoices or reminders. This formal demand becomes essential once the payment is 30 days overdue, especially for amounts over 1,000 DKK where you want to preserve your legal rights to collect.

The timing matters - sending it too early might harm business relationships, but waiting too long reduces your chances of recovery. Many Danish companies send these letters after 45-60 days of non-payment, particularly when dealing with business-to-business debts. It's particularly urgent to send one if you notice signs that your debtor might be facing financial difficulties or considering bankruptcy.

• Standard Business Debt Recovery Letter: The most common type, focusing on B2B debts with specific payment terms and interest calculations under Danish law
• Consumer Debt Recovery Letter: A gentler version for individual debtors, following Danish consumer protection requirements
• Final Warning Letter: More forceful language, explicitly stating legal action will follow, often used before involving debt collection agencies
• Installment Agreement Letter: Combines debt recovery with a proposed payment plan, useful for maintaining business relationships
• Corporate Group Recovery Letter: Addresses debts between affiliated companies, incorporating special considerations for intra-group transfers

• Business Creditors: Companies and sole proprietors who send Debt Recovery Letters to collect unpaid invoices, often through their accounting departments
• Legal Departments: In-house lawyers who draft and review these letters to ensure compliance with Danish debt collection laws
• Debt Collection Agencies: Professional collectors who send these letters on behalf of creditors, following strict regulatory guidelines
• Financial Controllers: Staff who monitor payment deadlines and initiate the recovery process
• Business Debtors: Companies receiving these letters must respond within the stated timeframe or face legal consequences

• Invoice Details: Gather all original invoices, payment terms, and proof of delivery or service completion
• Debtor Information: Compile accurate company name, registration number (CVR), and current address from the Danish Business Register
• Payment History: Document all previous payment reminders, communications, and partial payments made
• Interest Calculation: Calculate interest according to Danish Interest Act rates from the due date
• Timeline Documentation: Note all key dates including invoice issue, due date, and reminder communications
• Platform Use: Our system generates legally compliant letters automatically once you input these details

• Creditor Details: Full legal name, CVR number, and contact information of the party claiming payment
• Debt Specifics: Exact amount owed, original due date, and clear breakdown of principal and interest
• Payment Terms: Minimum 10-day payment deadline and complete bank account details for settlement
• Interest Notice: Statement of applicable interest rate under Danish Interest Act (currently 10.65%)
• Legal Warning: Clear statement about potential legal action if payment isn't received by deadline
• Documentation Reference: List of attached supporting documents like invoices or contracts
• Signature Block: Authorized representative's name, title, and signature with current date

A Debt Recovery Letter differs significantly from a Letter Before Action in both timing and legal implications within Danish debt collection practices. While both documents aim to recover unpaid amounts, they serve distinct purposes in the collection process.

• Timing and Tone: A Debt Recovery Letter is typically the first formal payment request, maintaining a more cooperative tone, while a Letter Before Action is the final warning before legal proceedings begin
• Legal Requirements: Debt Recovery Letters focus on documenting the debt and payment terms, whereas Letters Before Action must include specific legal warnings and court procedure details
• Response Timeline: Recovery Letters usually grant 10-14 days for payment, while Letters Before Action often give a shorter 7-day ultimatum before court action
• Cost Implications: Recovery Letters don't usually mention legal costs, but Letters Before Action must detail potential court fees and legal expenses the debtor may face