Increasing net returns for the German DCA market

Increasing net returns for the German DCA market


Due to the “Act to Improve Consumer Protection in Debt Collection” law that came into effect last year, the Debt Collection Agencies market in Germany is facing challenges.

What debt counsellors and consumer protectors described as “long overdue” poses massive economic challenges for many debt collection companies in Germany.

Because, while the law means a considerable cost saving for debtors, debt collection companies have to reckon with noticeable losses of income in carrying out their activities.

The new regulation primarily relieves debtors who are trying to settle their debts quickly, and consequently imposes increased fees for the debt collection industry. As a result, DCAs in Germany will bear significant income losses that can reach as high as 20%.

According to a statement by the BDIU (Association of German DebtCollectors) of 9 April 2020, which still assumed somewhat lower fees, there is a loss of income of approximately 49% in the value category of up to 500 Euro.

At QUALCO, we are conscious that our clients can tackle these challenges only by an intelligent, digital and cost-conscious operational business, that will lead to reduced costs and increased efficiency in recovery processes.

In our latest report, you can learn everything you need to know about the impact of the recent legal changes in the German DCA market and how technology can help you to increase recovery benefits and improve efficiency.

QUALCO’s technology ecosystem helps you to minimize losses, reduce costs whilst increasing productivity.

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