Iceland’s Minister of Business Limits Collection Fee Skip to content

Iceland’s Minister of Business Limits Collection Fee

By Iceland Review

Minister for Business Affairs Björgvin G. Sigurdsson has signed a regulation on the maximum amount that collection agencies, such as Intrum and Momentum, can charge for collection notices, to take effect on February 1.

“It is a long-awaited move and what many of my predecessors have fought for,” Sigurdsson told Fréttabladid. “It is especially important during the current circumstances.”

According to the regulation, only ISK 900 (USD 7, EUR 5) can be charged for compulsory collection notices from collection agencies after the payment date of claims expires.

The fee for other collection notices ranges from ISK 1,250 (USD 9.7, EUR 7.5) to ISK 5,500 (USD 42.8, EUR 32.8) for larger claims.

The new regulation states that a debtor has the right to be warned of collection in exchange for a moderate fee after the payment date expires. Therefore legal collection cannot begin immediately anymore after a claim goes into default.

Copyright of photo: Icelandic Photo Agency.

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