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For years, it has been a source of frustration for many: the high fines imposed by the government for late payment of its own agencies’ bills. While private collection agencies are allowed to add only 15% in extra costs, the government can charge significantly more. It has become a revenue model.
Legal Increases #
Anyone who, for example, receives a traffic fine and fails to pay it on time can see their fine triple within a short period. Politicians, experts, and consumer organizations are furious about this. Even the executing body, the Central Judicial Collection Agency (CJIB), which is responsible for collecting the fines, finds the situation deplorable. So how does this continue?
If you receive a fine of €500 and do not pay within eight weeks, you will receive a reminder and have to pay 50% more. A second reminder doubles the cost. In total, you would then have to pay €1,500. This is legally mandated, and the CJIB has no choice but to follow the law.
Unfair #
According to lector and special professor of debt and collection Nadja Jungmann, this is unfair, she told Nu.nl. She questions the reasonableness and proportionality of these increases. Compared to other companies, they are far too high, she says.
Stricter rules now apply to collection agencies to prevent people with debts from getting into deeper trouble. However, these rules do not apply to the government.
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The Reason #
According to demissionary minister Foort van Oosten, traffic fines are an important source of income. He explains in a letter to parliament that fine amounts are increased every year to plug budget gaps at the Ministry of Justice and Security. If the fines are not raised annually, the ministry will face a deficit. He believes that the revenue from fines should fully cover the ministry’s budget.
Political economist Merel van Rooy, author of the book “De Boetefabriek” (The Fine Factory), explained how cuts to the ministry led to the introduction of high reminder costs, an attempt to raise €8 million. Currently, this generates as much as €135 million, which is used to fund the ministry. This came to light in a broadcast of the TV program Kassa.
Reactions #
Jurist Roelof de Nekker finds that a fine is acceptable if there is an unwillingness to pay, but he has trouble with it when people are unable to pay. This approach, he argues, pushes people further into trouble.
Even the departing director of the CJIB, Albert Hazelhoff, said in the Leeuwarder Courant that these fines must be significantly reduced.
A Turnaround? #
Nowadays, the CJIB is allowed to offer customized solutions for people who cannot pay the fine or even to reverse the increase. However, people must contact the CJIB themselves to arrange this; otherwise, the fines will continue to be imposed as standard.