Return

dunning-and-enforcement-professional-receivables-management-for-municipalities-and-city-administrations

Accounts Receivable Management

Dunning and Enforcement – Professional Receivables Management for Municipalities and City Administrations

In municipal administration, dunning notices and enforcement actions are part of day-to-day operations when citizens do not settle payments due. KLEVERBILL provides a professional solution to manage these processes efficiently, in compliance with legal requirements, and with a customer-focused approach. In this article, you will learn how dunning and enforcement procedures work, which legal frameworks apply, and how KLEVERBILL helps you minimize administrative workload.

Valentin Bayh

3

min read

Contributors

Valentin Bayh

Managing Director | SFG Receivables Management

Subscribe to the newsletter

By registering, you agree to our privacy policy and consent to receiving updates from our company.

Reminder Notices and Enforcement in the Public Sector

In municipal administration, reminder notices and enforcement actions are part of day-to-day operations when citizens do not make due payments. KLEVERBILL provides a professional solution to manage these processes efficiently, compliantly, and with a citizen-focused approach. In this article, you will learn how reminders and enforcement are handled, which legal bases apply, and how KLEVERBILL helps you minimize administrative effort.


Reminder Notice: Final Reminder Before Enforcement

If a citizen does not settle a municipal claim by the due date, they receive a reminder notice from the treasury office. A distinction is made between public-law and private-law claims.


Purpose of the Reminder Notice

The reminder notice is intended to remind the citizen once again of their payment obligation and give them the opportunity to settle the outstanding claim voluntarily. The reminder notice results in additional costs such as reminder fees, late payment surcharges, or default interest.


Deadlines

In the public-law area, only one reminder notice is required before compulsory enforcement may be initiated. Unlike the private sector, where multiple reminders are common, legislators do not provide for additional reminder stages here.


Costs

In accordance with the Administrative Enforcement Costs Ordinance (VwVKostVO), reminder fees between €4 and €20 are charged, depending on the amount of the claim.


Recommendation

Pay on time, or contact the municipal treasury office early if you encounter payment difficulties. This helps you avoid further costs and enforcement measures.


SEPA Direct Debit Mandate: Avoid Late Payment

Additional reminder fees and administrative effort can be avoided easily: issue a SEPA direct debit mandate. This ensures due amounts are debited automatically on the due date, preventing default. The mandate can be revoked at any time.

Please note: costs resulting from returned direct debits (approx. €6, depending on the bank) must be borne by the account holder.


Enforcement: Compulsory Collection of the Claim

If the reminder notice is unsuccessful, it is followed by enforcement under administrative compulsory proceedings. The enforcement authority is responsible for collecting all public-law claims of the municipality, including those of other municipalities within the framework of administrative assistance.


Measures

The following enforcement measures may be taken:

  • Attachment of wages or bank accounts

  • Seizure of movable property (e.g., vehicle)

  • Collection of the statement of assets and entry in the debtor register

  • Forced auction of real estate

  • Master account data request from the Federal Central Tax Office

  • Registration of security mortgages


Installment Payments

If a one-time payment would constitute unreasonable hardship, an installment plan can be agreed for up to 12 months. A fee of 10% of the claim applies (minimum €10, maximum €100).


Discretion and Data Protection

All procedures are, of course, handled confidentially and in accordance with current data protection regulations.


KLEVERBILL: The Smart Solution for Reminder Notices and Enforcement

With KLEVERBILL, you automate processes from invoicing to reminders and maintain full visibility of all outstanding claims at all times:

✅ Automated invoice and reminder dispatch 

✅ Bank account integration for automatic payment reconciliation 

✅ Automatic deadline monitoring 

✅ Multi-stage dunning process in line with legal requirements 

✅ Transparency for administration and citizens 

✅ Reduction of errors and costs


Efficient Receivables Management with KLEVERBILL

Reminder notices and enforcement are essential instruments for safeguarding the financial capacity of municipalities. With KLEVERBILL, you streamline these processes, save resources, and avoid conflicts.

Subscribe to our newsletter to stay informed about features and updates.

Subscribe to our newsletter to stay informed about new features and releases. By signing up, you agree to our privacy policy.

Cookie Preferences

Subscribe to our newsletter to stay informed about features and updates.

Subscribe to our newsletter to stay informed about new features and releases. By signing up, you agree to our privacy policy.

Cookie Preferences

Subscribe to our newsletter to stay informed about features and updates.

Subscribe to our newsletter to stay informed about new features and releases. By signing up, you agree to our privacy policy.

Cookie Preferences