Update: Debt Collection Agencies – Finance 23rd October, 2014

 
  To ask the Minister for Finance if his attention has been drawn to the activities of a number of debt collection agencies including the Irish Debt Bureau who are used by a number of bodies to collect outstanding debts of unclear origin in some circumstances; if such collection agencies are exceeding their authority by their methodology; and if he will make a statement on the matter.
 
REPLY.

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.

In circumstances where a regulated financial service provider outsources its debt collection activities, any agent acting on behalf of that regulated financial services provider must comply with the requirements of Irish financial services law (including the CCMA) and failure to do so may result in the Central Bank imposing penalties on the regulated financial services provider concerned.

I should also point out that all debt collection 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.

If the Deputy is aware of any breach of the law by the firm, he should inform the Garda Síochána of it.