Michael McGrath (Cork South Central, Fianna Fail)
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To ask the Minister for Finance his plans to regulate persons or firms who are hired to provide debt collection services; if he has any record of the number of persons or firms providing such services at the present time; and if he will make a statement on the matter. [44778/12]

Michael Noonan (Limerick City, Fine Gael)
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I have no responsibility for the regulation of debt collectors and debt collecting firms. In such circumstances, I do not have details of the number of people or firms which provide such services. Debt collection services apply across a significantly wider range of activities than the recovery of money for financial products, for example for utilities, rents, other consumer debts and also debts between businesses. The Minister for Justice and Equality is responsible for legislation - the Non-Fatal Offences against the Person Act 1997 - which applies to all debt collectors that operate across any or all sectors of the economy, including private individuals and debt collecting firms. Under section 11 of this Act, it is an offence to demand payment of a debt in a way that is designed to cause alarm, distress or humiliation. A person found guilty of offences under this Act is subject to large fines and up to 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. The code obliges the regulated entities it covers to ensure that any outsourced activity, such as debt collection, 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, to act with due skill, care and diligence in the best interest of its customers and to prohibit personal visits or oral communications except 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. In view of the responsibility of the Minister for Justice and Equality in relation to the Non-Fatal Offences against the Persons Act 1997, the Deputy may wish to seek further clarification on the matter from him.