New crackdown on unscrupulous debt collection agencies

Consumers- and financial markets authorities ACM and AFM are cracking down on unscurpulous debt collection agencies. They launched an information campaign to help improve enforcement of rules among these so-callec "cowboy debt collectors", ANP reports.

Late last year ACM warned that some agencies use unfair practices, such as collecting more money than their due. Counsumer association Consumentenbond also warned that collection agencies unnecessarily frighten people with fake lawsuits and intimidation.

An investigation into the debt collection indusry revealed several shortcomings ranging from too hihg recovery costs and unacceptable pressure on the consumer - such as threatening to take their possessions or with a lawsuit if they don't pay immediately.

"It is impotant for consumers to take action", ACM board member Henk Don said to ANP. "In this way they prevent damages to themselves. And it also helps to stop unfair debt collection practices."

Industry association NVI released a statement in support of the ACM and AFM campaign. "The practices the ACM found is bad for the image of the industry", the organization said.