Dáil Éireann Debate, Thursday - 10 May 2012
56 Deputy Martin Ferris asked the Minister for Finance if he will make a statement on the legislation and codes of practice governing debt collection; and if he is satisfied that companies contracted to collect debts by public companies are in compliance with those regulations. [23538/12]
Amharc ar fhreagraI, as Minister for Finance, have no statutory function in relation to the issues raised by the Deputy. The Non-Fatal Offences Against the Person Act 1997, which addresses the issue of debt collection, is the responsibility of the Minister for Justice and Equality.
Under Section 11 of this Act, it is an offence to demand payment of a debt in a way designed to alarm, distress or humiliate. If someone is charged with this offence and it is tried as a summary offence the maximum penalty is €1,270 and/or 12 months imprisonment. If someone is charged with this offence and it is tried as an indictable offence, the maximum penalty is a fine and/or 14 years imprisonment.
The Deputy might wish to note that in the case of financial institutions which use debt collection firms, the Central Bank has imposed requirements that offer protection to consumers under its revised Consumer Protection Code (CPC). The Code obliges the regulated entities that it covers to ensure that any outsourced activity complies with the requirements of the Code. This means that outsourced activity should uphold principles in the Code such as the requirement for institutions:
not to exert undue pressure or undue influence on a customer;
to act honestly, fairly and professionally in the best interests of customers and to act with due skill, care and diligence in the best interest of its customers; and
to prohibit personal visits or oral communications excepts in specified circumstances.
Similarly, there are provisions in the Central Bank's Consumer Protection Code for Licensed Moneylenders which provide protections to consumers in relation to the debt collection activities of licensed moneylenders, including where they outsource this function to a third party.
