If you do nothing about the situation, things will only get worse. Here you can find out what can happen, step by step.
Due date
The first thing that happens when you owe money to someone is that the creditor sends you an invoice (bill). This shows how much you should pay and by when (due date). There is no rule that states that you can wait 30 days to pay. If there are conditions attached to an agreement, then these will apply. The agreement shall have been entered into when the deal was made. Conditions are often written in small print on the back of the contract. On the other hand, if you have not decided upon a payment date, then you shall pay when the seller demands. When you giro money to a post or bank giro account, it is safest to make the payment at the latest three to four working days before the last payment date. You should always check that the claim is correct. Do not just accept all fees that may be added. Ask to see what the demand is based on. Save all receipts!
Reminder
If you do not pay the invoice in time you will usually get a reminder. The creditor may charge a reminder fee if this is included in an agreement. If you cannot find any clause about a reminder fee, the easiest thing is to ask the person who sent the demand where in the agreement the right to charge a fee is stated. The creditor is not liable to send a reminder, except for a type of parking fine called a control fee. You yourself must therefore remember when the invoices are to be paid.
Interest on late payment
If there is an agreement that interest shall be added to late payments and a specified rate of interest, then this applies. Interest on late payment may be charged from the date stated in the agreement. This is usually after the last due date. If there is no agreement, then the law concerning interest applies. The law states that the creditor is entitled to charge interest on late payments one month after the date he sent his demand for payment. The credit agreement often states the rate of interest on late payment claimed by the company. If this is lacking, the interest on late payment may be at most the base rate, set by the National Debt Office (Riksgäldskontoret), plus 8 percentage points.
Debt collection
If you do not pay, the creditor himself may send a debt collection claim to you, or employ an agent, often a debt collection company, to make you pay. The debt collection claim shall clearly state the amount owed, the rate of interest and the compensation for the collection cost. If you cannot pay, you should immediately contact the person who sent the debt collection claim. There may be some opportunity to construct a new payment plan, often against a fee. How debt collection should be done is clearly detailed in the debt collection law. According to the law, nobody shall be exposed to unnecessary costs or harassment. The Data Inspection Board (Datainspektionen) shall ensure that the debt collection law is kept.
The enforcement service takes over
If, despite the debt collection claim, you do not pay, the creditor or the debt collection company may submit an application for an injunction to pay to the enforcement service. An injunction to pay is a decision from the enforcement service showing that you are liable to pay a claim. The enforcement service sends a letter to you, which has to be signed for, a so-called service. The service states how much the creditor demands from you. You still have the opportunity to pay the debt. If so, you shall notify the enforcement service that you have paid. If you do not object, or if you do not respond, the enforcement service will confirm the debt and send a decision to you and your creditor. After this, the creditor may let the enforcement service collect the debt. The process with service and decision means further fees, money that you will have to pay.
Record of non-payment of debt
When the enforcement service or the district court have confirmed the debt, a record of nonpayment of debt will be entered into various credit information registers. A record of non-payment of debt makes it difficult or impossible for you to borrow money, get credit cards, rent televisions or video players for at least three years. It may also be difficult to get a rented flat.
Distraint
The enforcement service can carry out distraint (collection) in various ways. The most common way is through deductions from your salary, pension, sickness benefit or other income (distraint on income).
Credit information
Credit information is information about your financial circumstances, which may help a creditor or landlord to make a financial assessment. All persons over 15 living in Sweden are included in credit information registers. The Data Inspection Board (Datainspektionen) monitors credit information companies. A person asking for credit information shall have a so-called legitimate need for it. This means that he shall have entered or be in the process of entering into a credit agreement with you.
Each time a credit information company gives information about a private individual, the person in question shall get written notification about the information that has been given out. You are also entitled to find out, free of charge, what information about you is on file. The request shall be in writing and signed. Write to the credit information company and refer to your right in accordance with the data law to an excerpt from the register. State your personal identification number, name and address. If you think that any information about you in the credit information register is incorrect or misleading, you should ask for a correction. The company shall then "promptly investigate the matter". If it turns out that the information is incorrect, the company shall correct it and inform all persons who have been given the incorrect information during the last twelve months.
