Cost effectivity of the domain monopoly of bailiffs
Default of payment is a huge economic cost. In recent years the number of defaulters and the amount of outstanding claims has risen considerably. According to some sources unpaid bills cost the Dutch economy € 12 billion annually. That is about 2% of GDP. A more cost-effective design of collection procedures would be advantageous for both creditors and debtors. It would have a positive impact on the provision of trade credit and would thus increase the trade volume, prices and ultimately welfare.
The current composition of the domain monopoly of bailiffs is not cost effective. The replacement of writs and services carried out by the bailiff by a registered letter with return to sender can lead to potential cost savings of tens of millions of euros. The potential cost savings of introducing a simplified procedure for uncontested debt collection can amount to more than a hundred million euro. In both cases, this does not affect the quality or legal certainty.
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