Regulatory Alerts2010-12-08
Guidelines for Debt Collection Agencies on Visiting Debtors
Finanstilsynet mandates that debt collectors physically visiting debtors must provide prior written notice, exercise discretion to avoid undue pressure or inconvenience, restrict visits to specified weekday and Saturday hours, and strictly uphold confidentiality obligations under the Debt Collection Act § 28. The guidelines clarify that costs associated with these visits fall under the maximum rates set in the Debt Collection Regulations §§ 2-2 and 2-3 and generally do not qualify for statutory exemptions. Furthermore, the actual manager(s) of the debt collection agency bear ultimate responsibility for ensuring compliance with all legislative requirements and for supervising both employees and contracted personnel conducting such visits.
Guidelines for Debt Collection Agencies on Visiting Debtors
2 | Finanstilsynet
In its supervisory activities, Finanstilsynet will assume that good debt collection practice requires that a debt collector who physically visits a debtor must:
- notify the debtor in writing in advance that a visit may be considered
- act with discretion and not expose the debtor to unreasonable harm, pressure, or inconvenience
- visit the debtor on working days, that is, Monday to Friday between 08:00 and 21:00, and Saturday between 09:00 and 15:00
- observe the confidentiality obligation in the Debt Collection Act § 28. This means, for example, that the person visiting the debtor may not inform the debtor's family, employer, neighbors, etc., that he or she represents a debt collector, nor may they leave business cards with the debt collector's logo on the debtor's door or in the mailbox.
Costs of Visiting Operations
Costs incurred through this debt collection measure are covered by the maximum rates in the Debt Collection Regulations §§ 2-2 and 2-3. As a general rule, these are not covered by the exemption in the Debt Collection Regulations § 2-5.
Responsibility of the Actual Manager When a Debtor is Visited
- The actual manager(s) of the debt collector has/have the overall responsibility for ensuring that the visit takes place in accordance with debt collection legislation, including good debt collection practice.
- Actual manager(s) are responsible for following up both employees and hired personnel who conduct visits.
Eirik Bunæs Wilhelm Mohn Grøstad
Contact persons: Advisor Marit Skjevling, tel. 22 93 97 27, e-mail: marit.skjevling@finanstilsynet.no Advisor Linda Marie Vestheim-Vigeland, tel. 22 93 97 32, e-mail: linda.marie.vestheim-vigeland@finanstilsynet.no
Guidelines for Debt Collection Agencies on Visiting Debtors Finanstilsynet | 3