German Federal Court rules on debt collection credit report costs

The German Federal Court of Justice (BGH) has ruled that debt collection agencies cannot automatically pass the costs of pre-litigation credit reports onto debtors. In two rulings issued on June 11, 2026, the court addressed cases where creditors sought reimbursement for credit inquiries costing between 1.35 and 1.61 euros as damages for default.

The BGH rejected these claims, stating that from the perspective of a reasonable and economically minded creditor, obtaining a credit report is not fundamentally necessary to enforce an existing claim. Instead, such reports are typically used to assess the risk of whether further legal action or compulsory enforcement is economically viable, which pertains to the creditor's own enforcement risk rather than the necessity of enforcing the claim itself.

While the court did not rule out reimbursement under all circumstances, it noted that creditors must demonstrate specific, exceptional circumstances that made the inquiry necessary. The ruling impacts debt collection practices by establishing that the mere fact that an agency obtains a credit report does not make the cost a recoverable damage item.