Ultimoo & the Debt Collection Quality Act (Wki): Fully Compliant

The Debt Collection Quality Act (Wki), effective April 1, 2024, introduces new requirements for debt collection agencies in the Netherlands. This legislation aims to improve collection practices, increase transparency, and strengthen consumer protection. For collection agencies, this means there is work to be done to meet these new standards. Naturally, Ultimoo Incasso is optimally prepared to be included in the official Debt Collection Services Register.

Understanding the Wki Requirements

The new law sets various requirements for collection agencies in the Netherlands. All collection service providers must account for:

• Quality standards for service delivery.
• Administrative obligations.
• Registration with the screening authority, Justis.

Many of these requirements are no longer a secret to Ultimoo Incasso. They are already part of other regulatory frameworks we adhere to, such as the NVI Debt Collection Quality Mark and our ISO certifications.

Service Quality Standards

The Wki imposes several requirements on our organization, processes, and collection approach. Below, we highlight some of these requirements and demonstrate how Ultimoo handles them.

Professional Knowledge

At Ultimoo, we continuously invest in the training of our employees. They are a vital part of our service success. All employees are required to obtain two NVI certificates: 'NVI Basic' and 'NVI Problematic Debts.' These courses teach our staff the correct approach to interacting with debtors.

Furthermore, we regularly organize internal knowledge sessions. These sessions focus primarily on debtor contact but also cover upcoming changes in laws and regulations.

Clarity of the Claim

Our clients and their debtors can rely on clear information regarding the buildup and legal basis of every claim. This not only contributes to a more transparent collection practice but also strengthens the relationship with the debtor by providing openness and clarity.

The NVI framework sets strict requirements for all communication sent to debtors. For instance, a detailed specification of the collection file is part of every letter or email. We also utilize a collection system where both clients and debtors can find a clear breakdown of the claim. Additionally, we ensure that all relevant legal regulations for debt collection are observed, eliminating any ambiguity regarding the content of a file.

Image: A letter from Ultimoo Incasso featuring a concise and detailed specification of the claim.

Interaction with Debtors

Finding a sustainable solution for payment arrears is central to our service. While an effective and efficient collection trajectory is vital, a respectful approach to debtors is equally important. In our industry, this is known as Socially Responsible Debt Collection. Through NVI training and Ultimoo knowledge sessions, our staff is well-trained in proper debtor conduct.

Administrative Obligations

The Wki also sets requirements for the administration of collection service providers. These aim to safeguard a solid organizational structure for collection activities. In practice, this means our internal processes must be transparent and auditable for both our employees and external regulators.

Additionally, we are required to have a clear complaints procedure. As an NVI-certified agency, complaints regarding our services are handled by the financial complaints institute, Kifid. This ensures professional handling by an independent party, which not only ensures Wki compliance but also improves our service and customer satisfaction.

Registration in the Official Register

From April 2, 2024, collection service providers can apply for inclusion in the Debt Collection Services Register. Agencies have one year to complete this. Companies not registered by April 1, 2025, are prohibited from providing extrajudicial collection services.

Registration involves several steps:

1. Application for registration with the screening authority, Justis (from April 2, 2024).
2. Ultimoo provides evidence for the quality framework.
3. Justis verifies the completeness of the application and screens the input.
4. Upon approval, Ultimoo Incasso is enrolled in the Debt Collection Services Register.

When asked when Ultimoo will be registered, Compliance Manager Marko Koffeman is clear: "As soon as possible. We will apply the moment the opportunity arises. Once we receive the framework, our team will gather the evidence and submit the application to Justis immediately. Ultimoo will pass the registration with flying colors."

The Debt Collection Quality Act (Wki) is a significant step forward in protecting consumers against unfair practices while creating a clear framework for businesses.

Wki and Consumer Protection

The Wki quality requirements at a glance:

• Management and staff must be of unimpeachable conduct.
• Personnel must be professionally competent.
• The approach to debtors must be understanding and helpful—never aggressive.
• The agency must be accessible during office hours, with contact details listed on all communications.
• All relevant documents must be available for every file.
• Disputed invoices must be taken seriously and answered substantively.
• A formal complaints procedure must be in place.

Impact of Wki on Businesses

For entrepreneurs, the Wki brings security. Companies may only partner with registered collection agencies that meet these quality standards. This ensures the professionalism and ethics of the agencies handling their claims, making it much harder for 'cowboy' agencies to operate. This enhances the image of the entire industry.

Every Debtor Has a Story

The Wki ensures agencies look beyond the debt and consider the debtor's situation. This includes proposing realistic payment plans and referring debtors with problematic debts to the appropriate assistance agencies, including suicide prevention services if necessary.

Future Outlook

The Wki promotes transparency, fairness, and respect. For consumers, it means a stronger safety net. For businesses, it offers an opportunity to build trust.

Amicable debt collection saves debtors approximately €500 million annually in unnecessary legal costs. This highlights the immense social and economic importance of our work, a vision that aligns perfectly with the Wki.

Conclusion

The Debt Collection Quality Act creates a fairer and more transparent landscape. It is a step forward in safeguarding the interests of all parties involved and promoting a healthy financial environment.