Debt collection agencies still not conforming to new law

An investigation into a sample of debt collection companies in the Netherlands determined that none of them are meeting the stricter quality requirements dictated by a new law, the Justice and Security Inspectorate said. The first findings are “concerning,” the authority said. There are still many shortcomings, especially with how the companies communicate with those in debt.

According to the inspectorate, people with debts are regularly approached too late stage, or debt collection agencies threaten legal action in an unlawful way. The new law states that only certified bailiffs are allowed to threaten a court summons, and other debt collection agencies are not authorized to do so.

Since April 1, debt collection firms have to conform to much stricter requirements, but the inspectorate will only start formal enforcement of the law from the start of next year. Until then, the organization is focusing on informing debt collectors about the new rules and incentivizing their compliance.

In recent months, the inspectorate carried out random checks and visited 11 debt collection service providers. They were not fined but were told how things could be improved.

“Not a single service provider had their affairs completely in order,” said Hans Faber, head inspector at the Justice and Security Inspectorate. “That has to change. We do this to ensure that people with debts are treated decently and are not pushed into further problems.”