Inkassovollmacht

What is a debt collection authorization?

A debt collection authorization is a legal permission that allows a creditor to authorize a debt collection agency to recover outstanding debts on their behalf. It forms the legal basis that enables a collection agency to act at all.

With this authorization, the agency may handle all tasks related to collecting an unpaid invoice. This includes contacting the debtor, receiving payments, or arranging payment agreements.

The debt collection authorization ensures legal certainty and transparency for all parties involved. The creditor transfers specific powers to a service provider, the debtor recognizes the agency’s authorization, and the agency itself can operate within a clear legal framework.

Without a valid debt collection authorization, a collection agency would not be permitted to act in the creditor’s name. It is therefore an essential part of every legitimate debt collection process.

Who issues a debt collection authorization?

A debt collection authorization is always issued by the creditor, the person or company owed money by a debtor.

If invoices remain unpaid despite reminders, the creditor can engage a collection agency to enforce the claim.

By granting the authorization, the creditor allows the collection agency to exercise their rights against the debtor. The creditor remains the rightful owner of the claim, while the agency merely acts as a representative.

This clear separation of roles ensures that it is always evident who owns the claim and who is responsible for collecting it.

To whom is a debt collection authorization granted?

A debt collection authorization is granted to a registered debt collection agency. Only companies licensed under the Legal Services Act (Rechtsdienstleistungsgesetz – RDG) are permitted to collect debts on behalf of others.

This means that the collection agency must be officially registered and verified to ensure compliance with all legal requirements and proper conduct.

In some cases, a lawyer may receive a similar authorization, particularly if the matter later proceeds to a court case. The key difference lies in the nature of their work:

• A collection agency may handle claims out of court, for example by sending reminders and arranging payment plans.

• A lawyer may also represent clients in court and file lawsuits.

A debt collection authorization always applies only to the specific agency named in it. It cannot be transferred or passed on to another party.

What does a debt collection authorization cover?

A debt collection authorization covers all actions necessary to collect an outstanding claim out of court. It allows the collection agency to act in the creditor’s name in a specific case.

This may concern a single invoice or several claims, depending on the agreement. What matters most is that the scope of the authorization is clearly defined.

Scope of powers

With a debt collection authorization, an agency is permitted to:

• Contact, remind, and request payment from debtors,

• Communicate by phone or in writing,

• Negotiate installment or settlement agreements,

• Calculate late payment interest and reminder fees,

• Receive, record, and forward payments to the creditor,

• Provide updates on the status of the claim.

The authorization thus covers all standard tasks of out-of-court receivables management.
However, it does not entitle the agency to initiate legal proceedings such as applying for a Payment order or filing a lawsuit. For this, a separate authorization from a lawyer is required.

Distinction from other types of authorization

A debt collection authorization is not a power of attorney for litigation (Prozessvollmacht). Such a power allows a lawyer to represent the creditor in court. The debt collection authorization, by contrast, applies only to out-of-court activities.

It also differs from internal authorizations within a company. For example, if an accounting department sends reminders itself, it does so without an external authorization. A debt collection authorization only becomes necessary when an external service provider is involved.

How is a debt collection authorization granted?

A debt collection authorization is always granted explicitly, usually as part of the debt collection agreement. By doing so, the creditor commissions the agency and simultaneously transfers the right to act on their behalf.

This can be done in several ways – in writing, electronically, or digitally via an online platform. What matters is that the authorization is clear and traceable.

Form and proof

A debt collection authorization does not necessarily require a handwritten signature. What matters is that it can be provenif needed.
In other words: the agency must be able to demonstrate that it was genuinely commissioned.

If the debtor requests to see the authorization, the agency can present it upon request. This provides transparency and builds trust.

Required information

A complete debt collection authorization should include:

• Name and address of the creditor,

• Name and address of the collection agency,

• Exact details of the claim (e.g., invoice number, amount, debtor’s name),

• A description of the powers being granted,

• Date of issuance,

• Signature or digital confirmation from the creditor.

The clearer and more complete these details are, the easier it is to prove later which claim the authorization applies to.

When does a debt collection authorization become effective?

A debt collection authorization becomes effective immediately once the creditor grants it and the collection agency accepts it. From that moment, the agency is legally allowed to act in the creditor’s name.

In practice, this means the agency may send reminders, contact debtors, or receive payments.

For the authorization to be legally valid, two conditions must be met:

1. The collection agency is registered under the Legal Services Act (RDG).

2. The authorization has been clearly and traceably granted.

In most cases, the authorization takes effect automatically once the creditor formally submits the claim to the collection agency.

How long is a debt collection authorization valid?

A debt collection authorization remains valid for as long as the collection assignment is active. It ends automatically when the assignment is completed, the debt is paid, or the creditor revokes it.

Revocation is possible at any time. Once revoked, the agency may no longer take any action on behalf of the creditor.

Typically, the authorization expires once the debt collection process is completed – for example, when the claim has been successfully recovered or the case is handed over to a lawyer.

This ensures that it is always clear when a collection agency is authorized to act and when its powers come to an end.