Debt Collection Agencies: Report of Working Party.

STATES OF JERSEY

DEBT COLLECTION AGENCIES: REPORT OF WORKING PARTY

Presented to the States on 20th March 2012 by the Minister for Economic Development

STATES GREFFE

2012   Price code: B  R.36

REPORT

Background

This Report follows the proposition lodged by Deputy M. Tadier of St. Brelade on 6th June 2011 (P.102/2011) to request the Minister –

1. to establish a Working Party to examine the current operation of debt collection agencies in Jersey and to consider the creation of a code of practice for such agencies to ensure that they operate according to best practice;
2. to appoint at least 2 States members as members of the Working Party and to take the necessary steps to appoint other members with relevant skills and experience, including representatives of the debt collection industry and representatives of groups representing the interests of consumers;
3. to present the report of the Working Party to the States once the Working Party has concluded its work.

The Minister fully supported the proposition and chaired the first meeting of the Working Party in September 2011.

Composition of the Working Party

Deputy M. Tadier of St. Brelade and Senator F. du H. Le Gresley were appointed as the 2 States members.

The  meeting  was  very  well  attended  by  representatives  from  5  Debt  Collection Agencies, as well as representation from the Citizens Advice Bureau and Trading Standards.

The Manager of the Citizens Advice Bureau agreed to chair future meetings and oversee the work of the group.

Working Party Membership

Deputy M. Tadier of St. Brelade

Senator F. du H. Le Gresley

Working Party Chairman – Mr. M. Ferey , Citizens Advice Bureau Miss A. de Bourcier, Trading Standards Service

Mr. M. Williams, Collect Services Limited

Mr. P. Boots, Cashback Limited

Mr. S. De Mouilpied, Resolve C.I. Ltd.

Ms. E. Atkinson, Chancellors Debt Recovery Limited

Mr. S. Hill, Hillbury Collection Services

The basis for a Code of Conduct

In 2011, the Minister for Economic Development published a Consultation Green Paper  on  the introduction  of  a  new  consumer  protection  Law. This  followed  the introduction in the United Kingdom (UK) of the Consumer Protection from Unfair Trading  Regulations  in  2008,  which  was  a  legal  obligation  flowing  from  the implementation of the Unfair Commercial Practices Directive.

With this work in train and mindful that any future legislation would regulate some aspects of debt collection, the group were keen to expedite a voluntary Code of Conduct.

This  document  would  then  form  a  useful  guide  and  reference  in  determining professional diligence under the proposed new Law.

The Code is modelled around the debt collection guidelines issued by the UK Office of Fair Trading and the UK Credit Services Association Code of Practice.

Five Debt Collection Agencies in Jersey have already agreed to subscribe to the Jersey Code from 1st March 2012.

The scope is sufficiently wide to allow other organisations who are involved in their own debt collection activities to consider subscribing.

Overview of the Code

The  code  contains  7 sections  dealing  with  different  aspects  of  debt  collection activities. In summary, these are –

1. General Code of Conduct

To ensure subscribers act responsibly and with integrity in the day-to-day conduct of its business.

2. Confidentiality

To ensure subscribers keep information in the strictest of confidence and adhere to the Law and fundamental principles of Data Protection.

3. Complaints

Have an adequate complaints procedure and advise complainants of all of the other remedies available including referral to –

• the Trading Standards Service where it appears that the subscriber has not complied with this Code;
• the Office of the Data Protection Commissioner for data protection related complaints;
• the Jersey Citizens Advice Bureau who provide debt advice and have an online self-help debt pack at www.cab.org.je.

4. Default Guidelines

Follow clear industry standards in attempting to carry out collection in default of payment.

5. Trace Guidelines

Ensure subscribers are circumspect and take all steps to verify that the person traced is in fact the debtor.

6. Purchased Debt Guidelines

Timely advise consumers when debt has been assigned and to whom.

7. Subscribing to this Code

Reconfirm  to  the  Code  every  24 months  and  display  a  certificate  of compliance.

Monitor and Review

Subscription will be managed by the Trading Standards Service in the same way that they manage subscribers to the Code of Practice for Consumer Lending.

Subscribers must ensure they make the Code available on their own website and provide a copy to debtors promptly on request. It will also be available on the States of Jersey website.

Complaints  relating  to  non-compliance  will  be  directed  to  the  Trading  Standards Service for investigation.

The Working Party has agreed to review the Code from time to time to ensure it reflects current best practice.

A copy of the Code of Conduct for Jersey Debt Collection is attached at the Appendix to this Report.

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