Debt Collection Agencies: Report of working party and approval of code of conduct

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A decision made 6 March 2012:

Decision Reference: MD-E-2012-0028
Decision Summary Title :	Debt Collection Agencies – Report of Working Party to be presented to the States		Date of Decision Summary:	1st March 2012
Decision Summary Author:	Director of Trading Standards		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Oral		Person Giving Oral Report:	Director – Trading Standards
Written Report Title :	N/A		Date of Written Report:	N/A
Written Report Author:	N/A		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Debt Collection Agencies – Report of Working Party to be presented to the States.
Decision(s): The Minister wishes to present the report of the Working Party on Debt Collection Agencies to the States. The Minister approved the Code of Conduct for Jersey Debt Collection Agencies and agreed that it should be published.
Reason(s) for Decision: Following acceptance of P102/2011 by the States the Minister established a Working Party to examine the operation of debt collection agencies in Jersey. The Working Party has now concluded its work and in line with part (c) of the proposition the Minister is presenting its report to the States, alongside the approved Code of Conduct.
Resource Implications: There are no financial or manpower implications as a result of this decision.
Action required: The report of the Working Party as attached to be provided to the Greffe to publish as an ‘R’ alongside the Code of Conduct for Jersey Debt Collection Agencies.
Signature: Senator AJH Maclean		Position: Minister for Economic Development
Date Signed:		Date of Decision (If different from Date Signed):

Debt Collection Agencies: Report of working party and approval of code of conduct

Minister for Economic Development

Report to the States of the Working Party established to examine the operation of debt collection agencies in Jersey

Background

This report follows the proposition lodged by Deputy Montfort Tadier of St. Brelade on 6th June 2011 (P102) to request the Minister to:-

(a) 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;

(b) 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;

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

Composition of the Working Party

Deputy Montfort Tadier of St. Brelade and Senator Francis Le Gresley were appointed as the two States members.

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

Malcolm Ferey, 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. 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 Economic Development Minister 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 seven sections dealing with different aspects of debt collection activities. In summary, these are;

General Code of Conduct

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

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

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.

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

Trace Guidelines
Ensure subscribers are circumspect and take all steps to verify that the person traced is in fact the debtor.
Purchased Debt Guidelines
Timely advise consumers when debt has been assigned and to whom.
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.