Found an error?
Report now
Swiss debt law actually provides for debt collection for unpaid bills.
Picture: Keystone
A forgotten bill can be expensive when a debt collection agency comes into play. Today, the Council of States is debating whether the often exorbitant additional fees should finally be limited.
A forgotten cell phone subscription, an old dentist's bill - and suddenly a high bill appears in your letterbox. The sender: a debt collection agency. Instead of the missing 80 francs, it demands almost 400 francs. Plus imaginary fees with fancy names like "credit check" or "address tracking costs". A politician now wants to put an end to this.
On Wednesday, the Council of States will discuss a proposal by Vincent Maitre, a member of the National Council from Geneva. His idea: debt collection companies should finally have to limit their additional fees. This is because such agencies often drive up debts with exorbitant claims. The National Council has already approved the proposal, now it's the turn of the second chamber.
But there is a catch: the majority of the Council of States committee and also the Federal Council oppose Maitre's plan. Their argument: debt collection companies are already not allowed to charge such surcharges. If this were to be capped by law, it would make injustice more or less acceptable.
The Federal Council writes the following about the proposal: "The requested regulation would limit the amount of fees that are not permitted as damage items under current law and are therefore not owed, but would legitimize them in principle."
In other words, an upper limit would restrict the rip-off of unpaid invoices, but it would now be permitted.
Legally, the matter is clearly regulated. According to Article 106 of the Swiss Code of Obligations, companies and other creditors may only demand so-called "default damages" if genuine, verifiable damage has been incurred. In practice, this hardly ever happens. The Federal Supreme Court ruled clearly in one case in 2022: anyone who demands unjustified debt collection costs and threatens debt enforcement even risks criminal charges - for attempted extortion.
Nevertheless, the business continues. Debt collection companies write in an official tone, sending reminders with deadlines and paragraphs. Many prefer to pay immediately to have peace of mind.
However, consumer protection warns: only pay the main claim, plus the default interest of five percent and any agreed reminder fees. Dispute the rest in writing - and if debt collection proceedings are initiated, immediately submit a partial legal proposal.
