If you have faced persistent calls from a debt collection agency, know that you are not alone. Many people find themselves in similar situations, but not everyone knows that there are specific laws in place to protect them. It is important to be informed and know how to act when feeling pressured.

The Laws that Protect Debtors

In Italy, debt collection activities must comply with very specific regulations. These laws exist to protect those who, for various reasons, have been unable to pay a bill or debt.

1. Article 106 of the Consolidated Banking Act (TUB): Debt collection agencies must be registered with the Bank of Italy’s Financial Intermediaries Register. If the agency contacting you is not registered, it may not have the legal authority to demand payment. Checking the registration is a crucial step in determining if the request is legitimate.
2. Consolidated Law on Public Security (TULPS): Every agent acting on behalf of a debt collection agency must carry an identification card issued by the Chief of Police. This card ensures that the operator is authorized to conduct such activities. If an operator cannot provide it, this is a red flag.

The Problem of Irregular Practices

Unfortunately, not all debt collection agencies operate within the law. According to data from consumer associations and the Italian Competition Authority (AGCM), about 25% of debt collection agencies in Italy do not comply with current regulations. This means that many payment requests may come from entities that do not follow proper procedures or are unauthorized to do so.

Unfair practices include:

• Persistent phone calls or calls made during times not permitted by law.
• Threats or intimidation toward debtors.
• Lack of transparency regarding the debt amount or added interest.

How to Defend Yourself

If a debt collection agency contacts you and you suspect something irregular, here are some steps you can take to protect yourself:

1. Verify the company: Ask for information about the debt collection agency contacting you and verify if it is registered under Article 106 TUB. This information is public and easily accessible online.
2. Ask for the agent’s identification card: If an agent contacts you by phone or in person, you have the right to request their authorization number and the identification card issued by the Chief of Police. This is your right, and the agent is obligated to provide it.
3. Request documentation of the debt: Do not settle for verbal requests. Always ask for a written copy of the debt, including details on the amounts and any applied interest.
4. Contact a consumer association: If you have doubts or feel pressured, you can reach out to a consumer association that can help you verify the legitimacy of the requests.

When to Report the Operator or Debt Collection Agency

Reporting a debt collection agency or operator is a legitimate and, in some cases, necessary step, especially when there are violations of the law or intimidating behavior. There are several situations where it may be appropriate to report an operator or agency:

1. Violation of the law: If the agency is not registered in the Financial Intermediaries Register (Article 106 TUB) or if the agent does not have an identification card (TULPS), you can report the irregularity to the relevant authorities, such as the Bank of Italy or the local police.
2. Intimidating or unfair practices: If you feel threatened or subjected to harassing phone calls, psychological pressure, or other forms of intimidation, you can report the operator to law enforcement or file a complaint for threats or harassment.
3. Illegitimate requests: If you are being asked for amounts that are not due or unclear, you can report the situation to the Italian Competition Authority (AGCM) or consumer associations.
4. Privacy violations: If the operator or debt collection agency processes your personal data without complying with GDPR regulations, you can file a complaint with the Data Protection Authority.

If a lawyer is involved, you can report any misconduct to the Bar Association, which is responsible for verifying the professional conduct of its members.

Filing a report is not wrong; in fact, it is often a necessary step to assert your rights and stop illegitimate practices.

How Debt Collection Works in Major European Countries

Debt collection regulations vary from country to country in Europe, but there are some common principles, such as transparency and consumer protection. Here’s an overview of how it works in some major European countries:

1. France: In France, debt collection is regulated by the Consumer Code, which sets strict rules to prevent abuse. Debt collection agencies must be registered with a supervisory authority, and operators must act transparently, providing complete information about the debt. Excessive or intimidating contact with the debtor is prohibited, and consumer associations offer support in case of abuse.
2. Germany: In Germany, debt collection is highly regulated by the Legal Services Act (RDG). Only lawyers or authorized debt collection agencies can request payments. Agencies must respect the principle of transparency, clearly stating the amounts due and any interest. Intimidating practices are also prohibited in Germany, and debtors can turn to the courts to challenge abuses.
3. United Kingdom: In the UK, debt collection is regulated by the Financial Conduct Authority (FCA), which requires agencies to adhere to strict conduct standards. Agencies must act fairly and transparently, providing clear details about the debt and payment terms. Debt collection agencies must be registered with the FCA and comply with the Consumer Credit Act. Debtors can also report unfair practices to regulatory authorities.
4. Spain: In Spain, debt collection is regulated by the Civil Procedure Act, which outlines the rules for payment requests. Agencies must be authorized and transparent in their requests. As in other countries, intimidating or abusive practices are prohibited, and debtors have the right to contest illegitimate requests in court. Consumer protection associations also offer legal assistance and advice.

Conclusion

Debt collection is a regulated process across Europe to protect both creditors and debtors. However, irregularities and unfair practices are not uncommon, and knowing your rights is essential to defending yourself against abuse or illegitimate demands. If in doubt, it is always advisable to consult a lawyer or contact a consumer association for assistance.