What exactly is 'No Cure, No Pay'?
'No Cure, No Pay' literally means: no result, no payment. In the debt collection world, it means that a collection agency or lawyer only charges fees if a payment is actually obtained from the debtor. It’s a system that limits risks for creditors: no result, no costs.
In Belgium, however, this principle cannot be applied everywhere. It is only allowed for amicable collections, and even there certain conditions apply. In judicial collections, 'No Cure, No Pay' is prohibited and rates are set by law.
Amicable vs judicial collection
To understand where "No Cure, No Pay" is and is not permitted, it is important to know the difference between amicable and judicial collection.
Amicable collection
In this stage, a collection agency or lawyer tries to resolve the debt “out of court”, without a judge’s involvement. This might involve reminder letters, phone calls, or emails to your customer.
Here, 'No Cure, No Pay' can be used under certain conditions. However, some agencies work with a subscription model or charge additional fees.
Judicial collection
When amicable attempts fail, you can proceed with legal action. This results in a judgment or enforceable title, which can be used to seize assets or income. At this stage, 'No Cure, No Pay' is legally prohibited.
What does the law say?
Belgian regulations are strict. To prevent abuse, 'No Cure, No Pay' can only be used within specific limits.
Legal ban for judicial collections
In Belgium, it is prohibited for lawyers and bailiffs to work solely on a 'No Cure, No Pay' basis for judicial procedures. This means:
- Once a collection goes through the court or involves an enforceable title, rates must be transparent and set by law.
- Lawyers must base their fees on objective criteria (such as performance, time spent, complexity) and cannot be paid solely based on the result.
This restriction is intended to safeguard the lawyer’s independence, avoid conflicts of interest, and protect debtors from excessive costs.
Advantages of No Cure, No Pay
For many entrepreneurs, 'No Cure, No Pay' initially seems like an ideal formula.
- No risk if unsuccessful: you only pay if it works.
- Low entry barrier: ideal for companies without a budget for expensive legal proceedings.
Disadvantages of No Cure, No Pay
However, this approach also has drawbacks:
- Limited applicability: difficult or disputed cases are often refused.
- Deduction from the principal: some agencies take a percentage of the recovered amount as payment, leaving you with less.
- Costs for the debtor: successful collections can lead to higher charges for the debtor.
- Lower motivation: to keep their own costs down, an agency might not pursue the most effective collection method.
Unpaid: a legal, results-driven alternative
At Unpaid, we have deliberately chosen a different approach. We use the RUD procedure, which allows us to appoint a bailiff within five working days. Thanks to this legal route, we can obtain an enforceable title without first going to court. The unique advantage? Costs are charged to the debtor.
This way, we combine the benefits of low-risk collection with a legally robust approach. We only get paid if we collect successfully and then it’s the debtor who pays, not you. That makes our model fairer, more transparent, and fully compliant with the law.
No Cure, No Pay isn’t always what it seems
Although the 'No Cure, No Pay' principle may sound appealing, in Belgium it is only usable in a limited context and comes with pitfalls. For complex or judicial cases, it does not offer a solution.
It’s important for creditors to consider whether this system fits their needs.
With Unpaid, you choose a legally grounded, fast, and results-oriented collection process. No subscription fees, no hidden commissions, just a clear focus on successful recovery.
Want to know more about how Unpaid can collect your unpaid invoices? Contact us with no obligation, or start your first claim right away: