Written answers

Tuesday, 24 September 2013

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry South, Independent)
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176. To ask the Minister for Finance if there are any proposals to introduce a strict code of conduct for persons employed by banks and lending institutions to collect outstanding debts (details supplied); and if he will make a statement on the matter. [39319/13]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I wish to inform the Deputy that I have no responsibility for the regulation of debt collectors and debt collecting firms employed by banks and lending institutions to collect outstanding debts. 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. This is set out in the Consumer Protection Code. The Code obliges the regulated entities that 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 and 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.

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