Collection process

Payment slips

• You will receive a payment slip to your internet bank monthly, quarterly or annually. The final due date is always 3 days after the due date.

• Cost of an electronic payment slip is 150 ISK

• Cost of a payment slip on paper by mail is 280 ISK.

Reminder

• A reminder letter is sent by mail 10 after the due date.

• Cost is 1.050 ISK.

Collection alert

• If a payment slip has not been paid 30 days after the due date you will receive a collection alert by mail.

• Cost is 1.050 ISK.

Final warning

• If a payment slip has not been paid 50 days after the due date you will receive a final warning by mail.

• Cost is 1.050 ISK.

Payment appeal

• If payment has not been made 75 days (2 and a half months) after the earliest unpaid due date, a payment appeal is sent. A process server or mailman delivers the payment appeal to the registered owner.

• Following the service of process HMS is authorized to register you on the Creditinfo defaulters’ list. To be removed from the list you must pay all the due dates specified in the payment appeal.

• Cost is 8.100 ISK. In addition there are service of process costs as determined by the Iceland Post’s tariff.

• If a borrower has a registered domicile abroad, the case is sent for legal collection at Lögheimtan and the costs are according to their tariff. For further information www.motus.is

Request for a forced sale

• If a loan has not been paid off within 15 days from the publication of the payment appeal and 105 days have passed since the first unpaid due date, a request for forced sale of the property is sent to the District Commissioner’s office (Sýslumaður). See more about the suspension or withdrawal of a forced sale.

• Cost is 3.500 ISK+vsk. In addition the forced sale fee collected by the national treasury is ISK 40.000

Hearings at the District Commissioner’s office (Sýslumaður)

• The enforced auction (first hearing) is carried out at the District Commissioner’s office (Sýslumaður) 1 to 3 months after the receipt of the forced sale request. They will decide the time of the auction.

• You will receive a notice of the hearing from the The District Commissioner’s office (Sýslumaður).

• The enforced auction (first hearing) will be advertised in the Lögbirtingarblað.

Enforced auction (first hearing)

• At the enforced auction (first hearing) bids for the property are sought and the District Commissioner (Sýslumaður) decides the time of the subsequent sale of the property. The second hearing takes place at the District Commissioner’s office (Sýslumaður) and the District Commissioner will notify the registered property owner of the time of the auction.

• The second auction will be advertised in newspapers and on The District Commissioner's (Sýslumaður) website.

Enforced auction (second hearing)

• Within 4 weeks from the second hearing there will be a sale by enforced auction (final hearing) which is the final sale of the property. The District Commissioner will notify the registered property owner of the sale.

• Sale by enforced auction (final sale) is advertised in newspapers and on the District Commissioner's (Sýslumaður) website.

• The registered property owner can come and ask for an extended deadline and request to rent the property. Þinglýstur eigandi getur mætt og farið fram á auka samþykkisfrest og óskað eftir að leigja eignina.

• See further information on forced sales on the District Commissioner’s (Sýslumaður) website.

Forced sale

• The property is sold for the debt. If the market value is lower than the debt, the rest of the debt will become a residual claim without collateral.

• During the claiming process, you will not be able to get a loan from HMS. Some other financial institutions grant loans despite an unsecured claim.

• For every one ISK you pay towards the claim, one ISK is deducted. Example: You pay 100.000 ISK and HMS reduces the debt by ISK 100.000 in return.

• After 3 years, you can apply for .