Collection fees
The fees of a debt collection agency for out-of-court activities are regularly claimed as part of subsequent court proceedings. Most courts reject these fees as non-refundable. This is due to the fact that the out-of-court fees would usually be lower in the case of legal work and, secondly, according to the German Lawyers’ FeesAct (RVG), the lawyer’s out-of-court fees must be partially offset against the fees incurred in the court proceedings, which is not the case with debt collection costs. As a result, it cannot be the case that a lawyer earns lower fees than a debt collection agency for the same activity.
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