If you have not paid a bill by the agreed deadline or responded to a reminder from the company, you are in default. In accordance with sections 286 and 280 BGB (German Civil Code), the creditor of the bill – who is your contract partner – therefore has the right to compensation for the damage caused to it by the payment default. This also includes costs, for example, for commissioning specialist partners such as solicitors and debt collection companies. The level of default damages a creditor can apply for commissioning a debt collection company is set out by law in Germany. In accordance with section 4, para. 5 of the Introductory Act to the Legal Services Act (RDGEG), the default damages for commissioning a debt collection company is limited to the level of the payment due to a solicitor in accordance with the provisions of the Lawyers Remuneration Act
(RVG). Therefore, we charge our services in accordance with the rates set out in the RVG. These default damages are payable by you. We at PAIR Finance believe that those who pay their outstanding debts quickly or conclude a payment agreement should not be charged with debt collection fees in accordance with the statutory rates in the RVG. So the amount we charge at the beginning at the process is regularly substantially below the statutory levels allowed. However, if an agreement cannot be reached and our administration costs continue to rise, we may, under some circumstances, be forced to charge the costs incurred for further processing.