§ 13. The debt collector's authority — you can safely pay the debt collection company
You can safely pay the debt collection company (inkassoselskap) — the payment is valid even though you normally owe the money to the original creditor (kreditor). Objections (innsigelser) you send to the debt collection company are treated as if you had sent them to the creditor. And repayment agreements the debt collection company enters into with you are binding on the creditor.
Machine-translated from Norwegian. The Norwegian text is the one that applies. Read the original in Norwegian.Norsk English العربية Polski Українська
The text of the law (unofficial translation)
The debtor (skyldneren) may, with discharging effect, pay a debt collector (inkassator) who has been engaged to collect the claim. Objections made to the debt collector have the same effect as if the objections had been made to the creditor (fordringshaveren). The creditor is bound by the repayment arrangements that the debt collector agrees with the debtor. The debtor's right under this section is independent of knowledge of the debt collector's rights in relation to the creditor.
What does this mean?
When a debt collector takes over the case, a question arises: who are you actually dealing with? Is the shop, the subscription company or the dentist still the other party? Or is it the debt collection company?
§ 13 gives a clear answer: the debt collection company steps in as an agent (representative) with full authority. This means three things:
Payment to the debt collection company is valid payment. If you pay the amount owed to the debt collection company, the debt is settled — even though, technically, you originally owed the money to another party. You do not need to worry that the creditor will later claim that the money never arrived, or that the debt collection company and the creditor have an internal problem.
The small caveat: you must pay the debt collection company that has actually been given the assignment. If the claim has been sold on to a new debt collection company, it is the new company you should pay.
Objections to the debt collection company are just as valid as objections to the creditor. If you have a legitimate claim that the invoice is wrong, that you did not receive the goods, or that you paid long ago — send it to the debt collection company. You do not need to go behind the debt collection company and contact the creditor directly. Legally, your objections are just as strong.
Repayment agreements are binding on the creditor. If you have phoned the debt collection company and agreed with them that you will pay NOK 500 a month over six months, the creditor is bound by that agreement. The creditor cannot later say that they do not approve the arrangement. The debt collection company has the authority to enter into such agreements on the creditor's behalf.
The last sentence — an important guarantee rule
The last sentence of the section is a little technical, but important: "The debtor's right under this section is independent of knowledge of the debt collector's rights in relation to the creditor."
This means that you, as the debtor, do not need to concern yourself with what kind of agreement the debt collection company and the creditor have between them. Perhaps the debt collection company did not have authority to enter into the repayment agreement they made with you — that is the creditor's and the debt collection company's problem, not yours. You can rely on what you agreed with the debt collection company.
This is a deliberate protective rule for you. You should not have to examine the internal contract between the debt collection company and the creditor to know whether you have paid correctly.
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Example
Thomas had a debt of NOK 8,500 to a furniture shop. The case had been sent to the debt collection company Kredinor. Thomas phoned Kredinor and agreed a repayment plan of NOK 850 a month over ten months. Kredinor confirmed the plan in writing. Two months into the plan, Thomas received a letter from the furniture shop itself, saying that they had not approved the repayment plan and demanding the full amount immediately. Thomas referred to § 13, third sentence. The creditor is bound by the repayment arrangements the debt collector agrees with the debtor. The furniture shop's demand was invalid. Thomas followed the plan he had agreed with Kredinor, and the debt was settled without further problems.
Common mistakes
- Paying the original creditor while the case is with the debt collection company — this can create confusion about whether the debt is settled
- Making a verbal repayment agreement without written confirmation
- Not using the right to send objections to the debt collection company, and instead trying to reach the original creditor directly
- Not keeping receipts for payments to the debt collection company
What should you do?
Do you have an ongoing debt collection (inkasso) case? Then it is the debt collection company — not the original creditor — you deal with for payment, objections and agreements.
Do you want a repayment plan? Phone or write to the debt collection company directly. Ask for written confirmation of the agreement. Keep that documentation — if the creditor should try to invalidate it, it is your most important piece of evidence.
Do you have objections? Send them in writing to the debt collection company. Mark the email or letter with the case number from the demand for payment (betalingsoppfordring).