# Should debt collection agencies be regulated?



## Brendan Burgess (20 Nov 2009)

1.[FONT=&quot]                  [/FONT]Do you agree that a licensing system should be introduced for the debt collection industry?  Do you agree that, subject to specified exceptions, all debt collectors and debt collection agencies should be obliged to hold a licence before operating a debt collection business? [Paragraph 4.225]

2.[FONT=&quot]                  [/FONT]Do you agree that the Irish Financial Services Regulatory Authority or another body such as the Irish Private Security Authority should be responsible for supervising the proposed licensing system for debt collection agencies? Do you have any other suggestions as to the appropriate body for the supervision of such agencies? [Paragraph 4.228]

3.[FONT=&quot]                  [/FONT]Do you agree that creditors collecting debts on their own behalf should be exempt from the proposed licensing system? Do you think that this exemption should be extended to those who have been assigned a debt, and do you think that exemptions from licensing should be given to any other groups? [Paragraph 4.230]

4.[FONT=&quot]                  [/FONT]What criteria should be taken into account in assessing whether an applicant is fit to hold a debt collection licence? [Paragraph 4.232]

5.[FONT=&quot]                  [/FONT]Do you agree that in addition to carrying out licensing assessments the relevant regulatory authority should issue a binding code of practice for debt collection agencies?  Such a code could be drawn up in cooperation with representatives of the debt collection industry. [Paragraph 4.234].


----------



## cazmayo (25 Nov 2009)

I think this area should be regulated - both for the interest of both parties.

As a business owner, its a nightmare trying to collect money, and its an expensive process bringing people to court.  Advice from solicitor when chasing a 4000 debt was, its not worth it!!  there should be a system in place to protect the business owner.

However, I also think debt collection agency need to be regulated.  It has been stated in the media that some unsavoury individuals with criminal records are setting up as debt collectors on behalf of desperate businesses and will use any means to collect the debt.

Therefore yes, I do think there needs to be major reform on both sides.

cheers caz


----------



## Colndas (25 Nov 2009)

A licencing system with an annual reviews may help reduce the number of less than savoury characters working within the system. 

That said, there are people who owe money and have obtained goods or services and have little or no intention of paying. As it stands it is difficult enough to enforce a debt and there needs to be a clear demarcation within any legislation between those than can pay but will not and those that are unable to pay but are willing to do so.

For those that can but will not pay, should a custodial sentence be used as a threat ? Is that any less intimidating than an authorised collector (Sheriff) calling to your door with the threat of taking items from your home? How do you ascertain intention or lack thereof ? At what level of debt do you draw the line ?


----------



## ajapale (27 Nov 2009)

Off topic posts concerning Ray Darcy, the Sheriff and Revenue have been moved to : Ray Darcy emotive and unbalanced in his handling of Majella Vs Revenue.


----------



## ajapale (27 Nov 2009)

There are those who consider that there is too much regulation in our economy already (Brendan  )! and that we cant afford it.

My own view is that debt collection agencies should be regulated by a tightly focused small agency (not as part of some hugh amorphous super financical regulator). The agency should be staffed up with some good public servants and paid based on performance. As long as the agencies objectives have been met in an economic fashion the agency should be allowed continue but if the objectives are not being met economically then the agency should be wound up forthwidth.


----------



## Caveat (27 Nov 2009)

ajapale said:


> .. and paid based on performance.



In what way?  Whilst I'm sure that's not what you meant you make it sound like the over zealous contracted clampers!


----------



## Colndas (28 Nov 2009)

There needs to be a central control over the whole area as it is predominantly about money. Who better than an already existing body that has a large amount of procedures and practices in place?

Perhaps the physical licencing of a debt collection agency should be renewed annually by a judge or Garda Commissioner on foot of feedback (positive or negative) from the governing body.

The authorised list should be easily accessible with the details being available for all to see. It could be accompanied by an equally accessible list showing those that have had licences revoked or are operating without licence.


----------



## Joey99 (17 Mar 2010)

For my money this is a no-brainer. If it's good enough to licence lenders here and lenders and collectors in the UK I fail to see any reason why debt collectors should not be licensed here.


----------

