§ 15. The debt collector must keep the creditor informed
The debt collector (inkassator) must keep the creditor (fordringshaver) updated on how the debt collection (inkasso) case is developing. When the case is finished, the creditor must receive a written overview. The overview must show what the debtor (skyldner) was charged, what the debtor paid, and what the debt collector is charging.
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The text of the law (unofficial translation)
A debt collector shall keep the creditor informed about the development of the debt collection case. When the assignment has ended, the debt collector shall give the creditor a written statement showing what the debtor has been charged, what the debtor has paid, and what fee (vederlag) the debt collector is claiming for work and costs.
What does this mean?
§ 15 is about the relationship between the debt collector and the creditor. The creditor is the one who owns the claim. The debt collector is the one who has been given the job of collecting it.
When a creditor sends a claim to debt collection, the creditor does not lose interest in the case. The claim still belongs to the creditor. The debt collector does the work, but on behalf of the creditor. That is why the creditor must be told what is happening.
There may be many things the creditor needs to know. Has the debtor paid? Has the debtor disputed (bestridt) the claim? Has the debtor asked for a payment agreement (betalingsavtale)? Has the case gone to the Conciliation Board (forliksrådet)? Has a partial payment come in? Is the claim impossible to collect? This is information the creditor needs to understand the case.
The law does not say exactly how often the debt collector must update the creditor. Nor does it say that every single small action must be reported the same day. The point is that the creditor must be kept informed in a proper way.
For large professional clients, this often happens through systems. A bank, an electricity company or a telecom company may have digital access to the case status. For smaller creditors, it may be email or written reports. The law does not require one particular method. It requires that the creditor actually receives the necessary information.
The second part of § 15 applies when the assignment has ended. The debt collector must then provide a written statement. This means a written overview. It must show three things: what the debtor was charged, what the debtor has paid, and what fee the debt collector is claiming.
This is important because money moves in several directions in a debt collection case. The debtor may pay the principal claim (hovedkrav), interest, fees (gebyrer) and costs. The debt collector may be entitled to a fee for their work. The creditor must be able to see what has come in, what has been deducted, and what is being paid on.
What must the final statement show?
The final statement must make the case understandable. The creditor should not have to guess what has happened.
First, the statement must show what the debtor has been charged. This means the entire claim as it was directed at the debtor. It may include the principal claim, late payment interest (forsinkelsesrenter), reminder fee (purregebyr), debt collection fee (inkassosalær) and other costs that have lawfully been added.
Next, the statement must show what the debtor has paid. This may be full payment, partial payment or nothing. If the debtor has paid in several instalments, the statement should show the payments in a clear way.
Finally, the statement must show what the debt collector is claiming as a fee. Fee means payment for work and costs. It may be the debt collector's charges, fees or other costs that follow from the agreement between the debt collector and the creditor.
This means the creditor gets an account of the case. How much was claimed? How much came in? How much does the debt collector take? How much does the creditor get?
Without such an overview, things can easily get messy. The creditor may believe more money has been paid than actually has. The debt collector may deduct costs the creditor does not understand. Or the debtor may have paid directly, so that the accounts must be adjusted.
Why is this important for the debtor?
§ 15 primarily gives rights to the creditor. But it also has practical significance for the debtor.
When the debt collector must keep track of what has been claimed and paid, it becomes harder to handle the case carelessly. The debt collector must have control over the amounts. This also protects the debtor against errors.
If you as the debtor pay NOK 2,000, the payment must be registered. If you enter into a payment agreement, it should be reflected in the case. If you dispute the claim, the creditor should be told. Clear reporting means the case does not just “roll on” as if you never replied.
Imagine you dispute a claim because you never received the item. If the debt collector does not inform the creditor, the creditor may think you are simply refusing to pay. The case can then become more contentious than necessary. Good flow of information can prevent unnecessary escalation.
§ 15 is therefore connected to good debt collection practice (god inkassoskikk) in § 8. A debt collector who does not have control over the case, the amounts or the communication also risks acting contrary to good debt collection practice.
What happens if the debt collector does not provide enough information?
If the debt collector does not keep the creditor informed, this may be a breach of the debt collector's duties. It can cause financial loss, misunderstandings and incorrect further collection (inndriving).
For the creditor, poor information can mean not being able to make the right choices. Perhaps the case should have been stopped because the debtor had a valid objection (innsigelse). Perhaps the case should have been passed on more quickly. Perhaps the creditor should have accepted a payment agreement.
For the debtor, poor information can mean the case becomes harsher than necessary. If objections, payments or agreements are not registered correctly, the debtor may be faced with an incorrect claim.
If the error leads to a breach of good debt collection practice or other rules in the Debt Collection Act, it may also affect the debt collection costs (inkassokostnadene). The debtor must not pay debt collection costs incurred through unlawful or disorderly collection.
Examples
Anne runs a small online shop. A customer has not paid an invoice of NOK 4,800. Anne sends the case to debt collection. The debt collection agency (inkassobyrå) sends a demand for payment (betalingsoppfordring) to the customer. The customer replies that the item arrived damaged. This is an objection. The debt collection agency must then assess the objection and keep Anne informed that the customer disputes the claim. Anne finds photos, the delivery confirmation and earlier emails with the customer. It turns out the customer reported the damage the same day the package arrived. Anne therefore chooses to withdraw the claim and send a new item instead. When the assignment ends, the debt collection agency must give Anne a written statement. It must show what the customer was charged, whether the customer paid anything, and what the debt collection agency is claiming for its work. The outcome is that Anne gets an overview. She sees why the case stopped, what was done, and what it cost.
Marius has rented out a garage space. The tenant owes NOK 3,000. Marius sends the claim to debt collection. The tenant pays NOK 1,500 directly to the debt collection agency. Later, the tenant pays NOK 1,500 directly to Marius. If Marius does not tell the debt collection agency, the case may go wrong. The debt collection agency may think only half the claim has been paid. § 15 is not directly about Marius's duty to inform the debt collection agency, but it shows why an overview is important. When the assignment ends, the debt collection agency must be able to produce a correct written statement. All payments must then be included. Marius should therefore notify the debt collection agency as soon as he receives payment directly. Otherwise, the tenant may be charged money that has already been paid.
Common mistakes
- The creditor sends the case to debt collection and never follows up
- The debt collector gives only verbal updates and no clear final statement
- Direct payments to the creditor are not reported to the debt collector
- The creditor does not understand the difference between the principal claim, interest and debt collection costs
- The debtor's objections are not passed on clearly enough
What should you do?
If you are a creditor, you should ask for a clear case status when you send a claim to debt collection. Clarify how you will receive updates. Ask whether you will get digital access, regular reports or emails about important events.
You should also notify immediately if the debtor pays you directly. The same applies if the debtor contacts you with objections. Do not let the debt collector continue the case on the wrong basis.
When the case ends, you should read the final statement. Check that the principal claim is correct. Check the payments. Check the debt collector's fee. If something is not right, you should ask straight away.
If you are a debtor, you should keep documentation of everything you pay. If you pay directly to the creditor, you should also send a copy to the debt collector. That way you avoid the case continuing as if the payment never happened.