Business Practices Committee Report 67

In an effort to improve the relations between businesses and consumers, the Committee developed a policy of self regulation. This self regulation is manifested in consumer codes of conduct for various industries. The Committee published a draft consumer code for debt recovery agents under Notice 184 in Government Gazette 15529 dated 4 March i 994 for comment. The final code was launched on 20 February 1998.

This Consumer Code for Debt Recovery Agents (the Code) is intended to govern the conduct of debt recovery agents. It embodies principles which are observed by the majority of debt recovery agents in the industry. When considering complaints, the Committee takes the·provisions of the Code into account in determining whether the conduct complained about constitutes a harmful business practice. In this respect the Code is more than a voluntary code of conduct.

The Code inter alia states that, in attempting to collect a claim, a debt recovery agent shall not threaten violence or harm to the debtor, or use obscene, defamatory, or threatening language when communicating with a debtor or persons related to him.