Seán Sherlock (Cork East, Labour)
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Question 111: To ask the Minister for Finance if he plans to introduce a system of regulation for debt collection agencies; and if he will make a statement on the matter. [17601/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I, as Minister for Finance, have no statutory function in relation to the issue raised by the Deputy, which is a matter for the Department of Justice, Equality and Law Reform.

Under Section 11 of the Non-Fatal Offences Against the Person Act 1997, 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 Financial Regulator has imposed requirements, under its Consumer Protection Code, that offer protection to consumers. 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.

The Deputy may also wish to note that the Financial Regulator has provided extensive information to assist consumers at risk of not being able to meet loan repayments. In relation to mortgages the statutory Code of Practice on Mortgage Arrears, along with the commitments given by the banks aligned to the IBF, will provide significant respite for individuals and households that encounter financial difficulties. The Money Advice and Budgeting Service (MABS) also provides useful independent advice and guidance in these circumstances.