No Cure No Pay Collection Agency

The No Cure No Pay incasso principle is fundamental to the operation of maritime salvage contracts. The principle was standardised in 1908 in the form of Lloyd’s Open Form (LOF), and has undergone 11 revisions. The latest version is LOF 80, introduced in 2011.

This principle makes the service provider responsible and offers welcome security to the customer. It applies to virtually all professions and is an essential part of consumer protection. Banning no cure, no pay in out-of-court debt collection would drive up costs for creditors, consumers, and small-scale traders, and channel more work to bailiffs. The law on this is not adapted to and does not fit in with the everyday practice of amicable debt collection, which is useful, well-monitored and seldom causes problems.