In today’s article, we will look at the future changes in the field of debt collection that the draft law on debt collection activities and the debt collection profession will bring with it. The law is scheduled to come into effect on January 1, 2024, and debt collection companies will have 12 months to adapt to the new standards and regulations. Here is the key information on the subject.
Why are the changes necessary?
In October 2022, the draft law was published on the website of the Government Legislation Center. Why did the legislature decide to regulate the industry? The main reason is the lack of clear rules and regulations on debt collection, which led to abuses and irregularities in the activities of debt collection companies. The bill aims to regulate this field, introducing clear rules and procedures.
Legislative process
The bill went through various stages of the legislative process. It was published in October 2022, and in March 2023 there were positions submitted for public consultation and opinion. In June 2023, the draft went to the Committee of the Council of Ministers for Digital Affairs.
What does the bill provide for?
The new law regulates the rules of debt collection and debt collection activities. This is intended to curb irregularities, such as the unlawful use by debt collectors of powers that only judicial officers are legally entitled to. The changes include, among other things, a ban on entering homes, invading workplaces, demanding disclosure of assets or indication of debtors’ bank account numbers. Until now, among other things, a debtor did not have the right to refuse to contact a collection agency. Instead, the new law allows the debtor to object – in writing or even verbally – which means a complete halt to the amicable handling of the case. The law also excludes debt collection activities against disabled persons, those without full legal capacity and those older than 75.
Lack of regulation in the debt collection profession
Currently, the debt collection profession is not regulated in any way. The lack of criteria, substantive or moral qualifications that such a person must meet raises questions for the legislature. The bill aims to introduce appropriate regulations on this issue to ensure integrity and ethics in debt collection activities.
Controversy surrounding the draft
The project is stirring up a lot of controversy. Some are concerned that the new regulations may adversely affect the ability to effectively collect debts from dishonest debtors. For others, however, it is a step toward protecting citizens from abuse by debt collection companies.
Summary
The draft law on debt collection activities and the debt collection profession brings with it important changes that will affect the operation of the debt collection industry in Poland. The regulation is intended to ensure the reliability of the activities of debt collection companies, protect citizens from possible abuses and enable effective supervision of this field. However, the controversy surrounding the project shows that there are different opinions on the subject. We look forward to further developments and guarantee our readiness to make any changes to Cash Collector’s business.