Regulatory Alerts2014-06-23
Guidelines on Debt Collectors' Access to Enter into Agreements on Additional Benefits in Connection with Debt Collection Assignments – "Pay Back"
The Norwegian Financial Supervisory Authority issued guidelines replacing previous rules to clarify the conditions under which debt collectors can provide additional benefits, such as refunds or free services, to creditors. The document mandates that any financial refunds must be strictly limited to amounts the debtor actually pays for necessary costs, prohibiting arrangements where the collector retains fees based on payment timing. It further distinguishes between permissible efficiency-enhancing services and prohibited benefits like guaranteed recovery rates or marketing support, requiring collectors to establish rigorous internal accounting routines to ensure compliance.
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