Regulatory Alerts2016-12-19
Guidelines for Debt Collectors' Collection and Handling of Legal Case Costs
The Norwegian Financial Supervisory Authority issued these guidelines to address inadequate internal procedures among foreign debt collection agencies regarding the collection and handling of legal case costs from debtors. The document clarifies that debt collectors and creditors are jointly liable for court fees and must treat paid fees as client funds held in trust until official invoices are settled or legal judgments are rendered. It further stipulates that while legal costs cannot be demanded without reservation before a court decision, collectors may present claims for out-of-court settlement provided they document the disclosure of relevant legal and factual information.
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