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Recovering Bank Charges for Returned Payments

EntrepreneurLaw and Tax Changes

bank charges

When a bank charges you fees for returned payments, the additional costs can be significant. However, you can recover these expenses from your customer by following certain steps. Here’s how to do it.

Types of bank charges for returned payments you can claim

You can claim costs incurred due to the return (bank commission, protest expenses, etc.), provided that you can justify them.

However, for higher debts, exceeding 30,000 euros, the charges you claim cannot exceed 15% of the principal. For others, the maximum will be the amount of the debt.

Calculating and including late payment interest

In addition to costs, you can claim interest for the days of delay in payment. You can calculate this by applying the agreed interest rate with your customer or, if there is no prior agreement, the rate in effect for the semester of the default (currently 4.0625% annually).

Practical example

For instance: If your unpaid amount is 100,000 euros and the return costs were 2,000 euros, if your customer pays you 30 days after the due date, you can claim up to an additional 338.54 euros for interest. 

In total, you can claim 2,338.54 euros. The calculation would be:

(100,000 x 4.0625% / 360) x 30 days = 338.54 + 2000 = 2,338.54 euros

Required documentation and final considerations

To claim these amounts, you must properly document the calculations and clearly communicate to the debtor the payment obligation. It is unnecessary to issue a separate invoice or change an existing one.

Your customer may resist these charges, but you can include them on an invoice without charging VAT.

Considerations regarding damages

Lastly, we should also mention damages. You can claim these as well.

For example, if you had to seek financing because of the customer’s non-payment, and the cost exceeded the late payment interest, you could claim that.

Nevertheless, proving these damages is often difficult and usually requires legal action. Therefore, to demand them successfully, ensure they are provable and a direct consequence of the default.


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