Reminder and Debt Collection Fees in Switzerland

Reminder and Debt Collection Fees

Reminder and debt collection fees are a frequent source of disputes in Switzerland. The law sets limits on what the creditor may charge.

Formal Demand (Art. 102 CO)

The debtor is in default when they have not performed their obligation by the agreed due date. If no due date is fixed, the creditor must send an interpellation (formal demand) to the debtor (art. 102 para. 1 CO). No specific form is required for a formal demand.

Reminder Fees

Reminder fees are not regulated by law. In principle:

1. The first reminder should be free (the formal demand is an obligation of the creditor)
2. Moderate reminder fees (CHF 10 to 20) may be accepted if provided for in the general terms and conditions accepted by the debtor
3. Excessive reminder fees (CHF 50 or more per reminder) may be deemed abusive

Debt Collection Fees

When the creditor engages a debt collection agency, the agency charges fees to the debtor. These fees are only legitimate if:

1. The debtor is genuinely in default
2. The fees are proportionate to the amount of the claim
3. The fees are contractually provided for or correspond to actual loss suffered by the creditor

Default Interest (Art. 104 CO)

In case of late payment, the creditor may charge default interest of 5% per annum (art. 104 para. 1 CO), unless otherwise agreed. A higher contractual rate is possible if agreed upon (art. 104 para. 2 CO).

Abusive Fees

Disproportionate reminder or collection fees may be challenged:

1. Under art. 8 UCA (unfair competition through abusive commercial conditions)
2. Under art. 163 para. 3 CO (judicial reduction of excessive contractual penalty)

Debtor's Rights

The debtor may:

1. Challenge excessive fees by refusing to pay them
2. Request a payment plan
3. File an objection to a payment order (art. 74 DCBA) if they contest the debt
4. Apply to the court to have fees declared abusive