Regulatory Alerts2016-12-21
Collection Agency's Duty of Investigation in Out-of-Court Debt Collection
The Norwegian Financial Supervisory Authority issued this circular to define the obligations of foreign collection agencies regarding the investigation of claims during out-of-court debt collection. It mandates that agencies must assess the legitimacy of claims, particularly when disputes arise or when a client generates an unreasonably high volume of objections, requiring robust internal controls and individual reviews in high-risk scenarios. The document further specifies that collection activities must cease upon receipt of non-frivolous objections, requiring legal proceedings if the debt remains contested.
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