Recommendation: Regulation of debt collection undertakings

[Brendan Burgess]

A licensing system would be introduced to regulate debt collection undertakings, which representative bodies in the sector have already supported. This would also put existing voluntary codes of practice on a statutory footing. The licensing system would also deal with unprofessional debt collection undertakings and, more worryingly, debt collectors who engage in criminal acts such as harassment. The Commission considers that the regulation of debt collection undertakings should be seen in the wider context of the proposed regulation of money advisers which may form part of a Central Bank Reform Bill due to be published shortly. While money advice and debt collection involve different activities, they are closely connected and the Commission suggests one regulatory body should be responsible for both.