LOCAL attorneys provide comprehensive services for the collection of financial claims for domestic and foreign parties, whether it is individuals or companies. The firm’s lawyers have both experience and knowledge in the field of claims collection, enabling us to provide comprehensive claims services to the benefit of our clients.

With our customers’ interests at heart, we focus on applying both effective and fair billing methods. The reliable work processes of LOCAL attorneys ensure efficient claims collection, which leads to a lower write-off rate of claims and an increase in value for our clients.

Our collection process ensures that creditors bear no costs for primary and intermediate collection actions, even if a claim is not paid. Collection costs that are added to the amount of the claim depend on the LOCAL attorneys’ fee schedule and the regulation on the maximum amount of collection costs.

The claim collection process is as follows:

The first step of the claims process is initial billing. It consists of the statutory sending of a debt collection warning to the debtor that if the claim is not paid within the prescribed period, further action can be expected with associated increased costs.

When sending a billing warning, an amount of ISK. 950 collection fee on top of the amount owed by the debtor.

We can accept claims directly from the creditor’s commercial bank, so you don’t have to manually select which claims are sent to collection each time.

The second step of the claims collection is the intermediate collection, which begins if the debtor does not respond to a collection warning and the claim remains in arrears.

Interim collection consists of sending one to three collection letters to the debtor with a reminder of the unpaid claim, together with a phone call to push for payment.

Legal debt collection is a more formal debt collection than primary and intermediate debt collection, with associated increased costs on top of the claim.

Legal collection consists of actions according to the Judicial Procedure Act,

Before initiating a lawsuit or enforcement actions, we generally send two legal collection letters to the debtor, with a warning of further actions with associated increased costs and disadvantages.

If the claim has not been paid after sending legal collection letters, we will assess the next steps with the creditor. The result of such an assessment may lead to the initiation of a lawsuit before the courts or enforcement actions at the offices of the relevant district commissioner.

We provide creditors with professional advice on available remedies at this stage, but the creditor decides how to proceed with the case.

If the initiation of a case before the courts or the district commissioner are not considered optimal, such as due to low claim amounts or the debtor’s debt and property status, we place the claim on a formal watch. Then collection actions are continued until the limitation period of the claim, along with monitoring of the debtor’s financial status.

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or contact us:
local@locallogmenn.is

or contact us:
local@locallogmenn.is

Services