Enda Kenny (Mayo, Fine Gael)
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Question 24: To ask the Minister for Justice, Equality and Law Reform his views on the absence of regulation for debt collectors; if his attention has been drawn to the fact that debtors are being intimidated by criminal elements within the debt collection industry; and if he will make a statement on the matter. [31489/09]

Dermot Ahern (Louth, Fianna Fail)
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I am aware that the Law Reform Commission, in its Consultation Paper on Debt Management and Debt Enforcement, to be published later today provisionally recommends that a licensing system should be introduced for the debt collection industry. Moreover, the theme of the Annual Conference of the Commission to be held in November will also be the subject of debt management and enforcement. This work of the Commission is timely and its final recommendations based on necessary consultations will be carefully examined in the relevant Departments including my own with a view to their early implementation.

I am of course aware of the media reports which allege intimidation of persons owing money in various circumstances. Intimidation and threatening behaviour of debt collectors, no more than such behaviour by any person, comes within the scope of the provisions of the Non-Fatal Offences against the Person Act 1997. Any person who is threatened or intimidated by debt collectors should, therefore, report the incident to the Gardaí who will, based on the evidence, take appropriate action.

I am satisfied that the code of criminal law as it stands has the necessary strength to be applied to cases of intimidation by debt collectors. However, I can assure the Deputy that my Department continues to review the operation of the law in this specific area in consultation with other Departments, the Garda Síochána and relevant interests. I would not hesitate to take further action if I thought it was necessary.

I should also like to point that the current legal framework has been recently reformed to provide support to persons who are in debt and have difficulties. Government policy, by way of improved systems for the management of personal debt collection, is reflected in the following measures:

a Code of Conduct for mortgage arrears issued by the Financial Regulator which came into force in February of this year and which applies to principal private residences,

new procedures to ensure that all repossession or sale proceedings on housing loan mortgages must be taken locally in the Circuit Court rather than in the High Court. This will reduce the cost and inconvenience involved in making a court appearance and, thereby, encourage borrowers who are in arrears to enter a defence in such proceedings,

new powers to allow registrars of Circuit Courts to deal with applications for repossession orders. County Registrars' hearings are likely to be less costly and intimidating than a judicial hearing. Where a case is being defended, the County Registrar will be able to give directions to enable the case to be fully prepared for trial before it comes before a judge. The County Registrar may also approve a settlement of the case between the parties,

the Enforcement of Court Orders (Amendment) Act 2009 provides a process under which the court is required to satisfy itself that the debtor is unable to pay and that all other means possible have been taken to recover the debt,

debtors are supported by the welfare services through the Money Advice and Budgeting Service and other agencies.