The updated guidelines for good debt collection practice take into account the amendments to the Debt Collection Act, which entered into force in 2013. The amendments have especially improved the debtor’s position by reducing the costs that the debtor incurs from debt collection and specifying the content of good debt collection practice in different stages of the process.
The Consumer Ombudsman oversees that the Debt Collection Act and good debt collection practice are observed in collection of outstanding consumer debts. In order to pre-empt problems, the Consumer Ombudsman has drawn up a set of guidelines for entrepreneurs and public organisations, which includes the key issues related to consumer debt collection.
In addition to the Consumer Ombudsman’s views on good debt collection practice, the guidelines include advice on problems links to debt collection situations. The guidelines include examples on how the debtor’s interests must be taken into account in debt collection and when it can be deemed that the debtor will incur undue harm from debt collection.
The guidelines take into account the amendments to the Debt Collection Act, which entered into force in 2013. Parties representing creditors, the debt collections field and debtors have had the opportunity to present their views on the guidelines in writing, as well as verbally at a hearing held in autumn 2013.
Good debt collection practice
Amended Debt Collection Act improves consumer position, FCCA press release 14/03/2013