Debt collection refers to the collection of receivables on behalf of another party.
The act on the registration of debt collectors has been in force since the beginning of 2019. According to the act, debt collection constitutes a trade that requires registration. A private entrepreneur or a private legal person entered into the register of debt collectors maintained by the State Administrative Agency for Southern Finland is entitled to practise debt collection activities.
The purpose of registering debt collectors is to ensure compliance with good debt collection practices. Registration will also facilitate the supervision of debt collectors and prevent shadow economy.
The registration authority is required to check the debt collectors’ professional competence, reliability and solvency. To qualify for registration, the debt collector must have on its payroll a person in charge of debt collection activities who will ensure compliance with good debt collection practices and the law. Everyone practising debt collection must have sufficient professional competence required for the task.
The Regional State Administrative Agency for Southern Finland serves as the supervisory authority of debt collectors. The Agency may use coercive measures if any inappropriate debt collection practices come to its attention.
The Ministry of Economic Affairs and Employment is responsible for the preparation of the act on the registration of debt collectors.