Michael McGrath (Cork South Central, Fianna Fail)
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47. To ask the Minister for Finance if debt collection firms used by various service providers are regulated entities; if there are controls on the number and nature of contact they may have with customers; and if he will make a statement on the matter. [38605/14]

Michael Noonan (Limerick City, Fine Gael)
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The Central Bank confirmed to me that Debt Collection Firms, that is, firms that seek to collect debt due on behalf of creditors are not subject to authorisation and supervision in their own right by the Central Bank of Ireland.  The Central Bank of Ireland does, however, authorise and supervise debt management firms which provide advice to and /or negotiate on behalf of consumers in debt in accordance with provisions set out in Part V of the Central Bank Act, 1997 as amended.

However, where a firm regulated by the Central Bank of Ireland outsources an activity such as debt collection to another firm, the Consumer Protection Code has a specific provision which requires that any such outsourced activity must comply with the requirements of the Code (provision 2.10 of the Code  ).  The effect of this provision is that any company operating under an outsourcing arrangement from a regulated firm, must act in accordance with the rules of the Consumer Protection Code.  There are similar provisions in the Code of Conduct on Mortgage Arrears (CCMA).

The Consumer Protection Code provides at paragraph 8.14

"Each calendar month, a regulated entity, and/or any third party acting on its behalf, must not initiate more than three unsolicited communications, by whatever means, to a personal consumer in respect of arrears..."

Paragraph 22 of the CCMA provides

"A lender must ensure that: a) the level of  communications from the lender, or any third party acting on its behalf, is proportionate and not excessive, taking into account the circumstances of the borrowers, including that unnecessarily frequent communications are not made;

b)communications with borrowers are not aggressive, intimidating or harassing; ..."

Where a debt collection firm does not comply with such requirements, the Central Bank may impose penalties on the regulated firm concerned. 

I should also point out that all debt collectors that operate across any or all sectors of the economy, including private individuals and debt collecting firms are subject to the provisions of the Non-Fatal Offences against the Person Act 1997 . 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.