A holistic approach to extra-judicial enforcement and private debt collection: A comparative account of trends, empirical evidences, and the connected regulatory challenges

Abstract

PART ONE"The title [debt] collector conjures up a very negative image. It connotes a cold, ruthless, insensitive individual whose only purpose is to extract monies from other human beings without emotion or feeling. A collector might be a credit manager, adjuster, accounts receivable clerk, bookkeeper -anyone who has been assigned the task of collecting delinquent accounts. Collectors are a valuable asset to any business, but, unfortunately, they are often viewed as a necessary evil. " Abstract: The article is a comparative account of empirical evidences and regulatory responses on the practices and corollary problems of private debt collectors as compared to private bailiffs and repossession agents. Part One of the article reflects on the importance of extra-judicial enforcement, clarifies the terminology, and illustrates

Regulation of Abusive Debt Collection Practices in the EU Member States: An Empirical Account

“…France does have rules regarding formal requirements for written communication with consumer-debtors in a chapter of their Code of Civil Procedure (Stănescu 2015 ), which was deemed by the debt-collector associations “sector-specific legislation.” However, the supervisory body answered in the negative and given the general nature of the Civil Code of Procedure ( lex generalis ) the latter’s answer was given preference. In Hungary, the Central Bank issued a Guideline on debt recovery, which is not-binding and falls into the category of soft-law (Tajti 2019 ). Given the non-binding character of the Guideline and the negative answer of the supervisory body, the survey did not include Hungary among the states with sector-specific legislation.…”

“…Academic works have covered extensively concepts such as money (Gleeson 2018 ), consumer credit (Brown 2019 ; Goode and McKendrick 2016 ; Goode 1989 ; Guest et al 2009 ; Rosenthal and Haxton-Bernard 2018 ), security interests (Beale et al 2012 ; Dahan and Simpson 2008 ; de Lacy 2010 ; Drobnig 2007 ; Rizoiu 2011 ; Tajti 2002 , 2013 , 2014 ), and the strong ties between them. However, debt collection has received very little attention (Deville 2015 ; Jérusalmy et al 2020 ; Reifner et al 2010 ; Tajti 2019 ; Stănescu 2015 ; Stănescu and Bogdan 2020 ).…”

“…So far, legal scholarship in English language has focused mostly on the major Western jurisdictions, such as France, Germany, or the United Kingdom (UK) (Deville 2015 ; Jérusalmy et al 2020 ; Reifner et al 2010 ; Stănescu 2015 ; Tajti 2019 ). Yet, these works are affected now by significant issues that diminish their relevance, such as reliance on erred, incomplete, or outdated 8 information.…”

“… 8 For instance, in Reifner et al ( 2010 ), it is stated that Denmark does not have a sector-specific law for debt collection, although it had implemented one in 1997. Tajti’s ( 2019 ) comparative assessment covers Hungary’s soft-law approach in wide detail and with anecdotal evidence; however, the rest of the information provided is lacunar and affected by the general absence of local sources in English or other large circulation language. For this reason, a number of key regulations and guidelines were omitted from the analysis.…”

A Note for the Need to Regulate Private Debt Collectors’ Activities in Georgia – Existing Regulatory Gap and Selected Comparative Approaches

“…28 Rules are fragmented and can be found in different branches of law, mostly consumer protection law; however, it was rightly mentioned by Tibor Tajti that the U.K. "has one of the most developed and tested laws on private debt collection -even if fragmented and scattered over more branches of law, and the most important part actually being soft law today." 29 The fact that the U.K. does not have a comprehensive act regulating debt collection cannot lead to the conclusion that the unfair practices are not addressed. Consumer Credit Act involves the protection of consumer debtors, regulates relevant conditions for the acquisition of debt collection licenses, allows taking of measures against applicants, authorizes debt adviser services, and considers vulnerability conditions of particular debtors (for instance, mental health conditions).…”