The specifics of the flat rate collection costs
The Court of Justice of the European Union expressed its position regarding Czech ALD Automotive, stating that the 40 euros can be applied for each late payment (invoice), rather than only once per contract.
According to the judgment in Case C78/22, the 40 euros applies even if the claim itself is of a small amount, and national regulations may provide for judicial discretion to moderate or waive its enforcement based on considerations of morality.