It will not be easy to become a debt collector

The current freedom in performing the profession of a debt collector is to be curtailed.

The functioning of the debt collection market so far has raised a number of justified doubts. Therefore, the legislator’s inclination to this issue and the development of a draft act on debt collection activities and the profession of debt collector were received positively. However, not all ideas contained in it are met with a positive opinion of experts.

One of them is the introduction of restrictions on the choice of the legal form of conducting debt collection activities. Well, there will be no choice. Companies engaged in debt collection will only be able to have the form of a joint-stock company. Experts note that this type of solution may result in the emergence of monopolists in the industry.

The intention is to create a Central Register of Debt Collection Entrepreneurs and Debt Collectors, which will include licensed debt collectors. Moreover, the rules that a candidate for a licensed debt collector will have to meet have been clarified. The specialists have no major objections to this, but they negatively assessed the requirement of cooperation between the debt collector and the debt collection company based on the employment contract.

Another provision concerns severe punishment (ranging from a fine to imprisonment) of debt collectors for behavior towards debtors that raise reasonable doubts as to their legality. Speech, among others of harassment or harassment. Specialists note that it is right to strive to curb this type of behavior, but they pay attention to the effectiveness of the use of these penalties.

The legislator also intends to oblige debt collectors to keep records of all debt collection cases that are under its responsibility. Experts say this is the right solution, but it can significantly extend the recovery time.

Source: https://www.prawo.pl/biznes/przepisy-o-windykacji,518803.html