Who protects the creditor?

I often find myself reflecting on the stark differences in how the 'debt collection industry' is perceived in the Netherlands compared to other countries. The further north you go, the more accepted and logical it becomes to involve a collection agency when a payment isn't received. In my view, the Nordics are far ahead in this regard, at least in terms of public perception. In a country like Turkey, where I managed a collection agency for five years, people often didn't even know what debt collection services were, let alone that they come at a price. Charging extrajudicial costs to debtors was strictly prohibited there. In the Netherlands, this is fairly well-regulated through the WIK (Collection Costs Act); the 'polluter pays' principle applies.

Nevertheless, there is frequent talk about the exorbitant costs we supposedly charge and collect—as if the work performed should not be rewarded. Costs only truly start to escalate when the courts and bailiffs are involved. Amicable settlement largely limits this escalation and plays a vital role in keeping costs low and therefore limiting debt. When politicians in The Hague, particularly in the House of Representatives, discuss the collection industry, the conversation quickly turns to 'cowboys' or 'greedy debt buyers' who need to be reined in. For instance, the original working title for the Debt Collection Quality Act (Wki) was the 'Debt Collection Misconduct Act.' Of course, every industry has dark figures who ruin it for the rest—plumbers, for example. But a 'Plumbing Misconduct Act' would be unthinkable, wouldn't it?!

Looking only at the NVI (Dutch Association of Certified Debt Collection Agencies), its members handle more than 4,000,000 claims per year. The number of complaints received annually is fewer than 200. This is minimal, which is why it is essential that the industry is taken more seriously and its social value is recognized. The introduction of the Wki is a good first step in that direction. Cooperation with The Hague is also improving, as evidenced by the joint interview with the NVI and the Ministry of Justice and Security elsewhere in the professional journal The Credit Manager.

However, we are not there yet. The norm of 'whoever buys something must pay for it' seems further away than ever.

Who protects the creditor?