Adjustment of Book XIX: Moderation Instead of Annulment of General Terms and Conditions

The addition of Book XIXto the WER carved out a new framework for the collection of consumer debts.

We have already written extensively about this; the most significant adjustments to the collection process arethe free reminder and the capping of late payment interest and fees.

However, on 12/11/2023, an additionaladjustment to Book XIXwas made, resulting ina moderation instead of an annulment of the general terms and conditionsfor invoices issued before September 1, 2023.

Situation Since 1/12/2023

Theimplementation of Book XIX(published on 23/05/2023) has been carried out in2 phases:

For new contracts, this law applies from 1/09/2023.
For old contracts, this law applies from 1/12/2023.

However, the legislator recognized that there wasa need for leniency regarding the collection process for invoices dated before 1/09/2023. This leniency took the form ofmoderation rather than nullification of the creditor’s general terms and conditions.

Creditors could not have known that a legal adjustment was forthcoming for this period and had already initiated their collection processes in accordance with the then-current legislation.

What Does the Integration of Book XIX Require of You?

Theintegration of Book XIXin a nutshell:

No fees may be charged for sending the first reminder letter.
After the reminder letter, the debtor hastwo weeks to make payment free of charge.
If the debtor still has not paid after this period,only capped late interest and fees may be charged.

A detailed explanationcan be found here. It is important that your general terms and conditions be updated to comply with this new regulation.

Article 120 of the Law of 5/11/2023

This moderation is encapsulated inArticle 120 of the Law of 5/11/2023:

Article 15, § 2, of the Law of May 4, 2023, concerning the integration of Book XIX “Consumer Debt” into the Economic Law Code, is supplemented with two paragraphs, stating: “Notwithstanding Article XIX.4, third paragraph, of the Economic Law Code, the late interest and lump-sum compensation agreed upon before the effective date of this law, in accordance with Articles I.8, 22°, VI.82, and VI.83 of the Economic Law Code, but exceeding the amounts specified in Article XIX.4 of the same Code, shall be reduced in accordance with the thresholds established in Article XIX.4.”

In short:for invoices dated before September 1, 2023, late interest and fees are to be moderated to those allowed under Book XIX.

Please note: if the costs and interest rates according to the general terms and conditions are lower than those allowed under Book XIX, this does not mean they can be increased to match the late interest and costs as per Book XIX.

It remains important for creditors to update their general terms and conditions in accordance with the provisions of Book XIX, as the permitted moderation does not apply to invoices from 1/09/2024 onwards!

Do you have questions regarding this new B2C legislation? As an (international) debt collection partner, we will gladly assist you without any obligation. Do not hesitate to contact us at s.dereze@tcm.be or 0498 29 29 14.

2/02/2024