Collection agencies must hold a licence from 2024

28 October 2023

UPDATE October 2023: the licence requirement for collection agencies has been moved from 1 January 2024 to 1 March 2024.

Until now, collection agencies did not yet need to hold a licence, but that will change from March 2024.

From March 2024, collection agencies must hold a licence before they are allowed to carry out their activities. Collection agencies with a licence will be included in a national register of collection agencies.

The Quality of Collection Services Act will form the basis for the licence for collection agencies. This concerns the out-of-court phase, also known as the amicable collection process. In this phase, rogue collection agencies are sometimes used, with all the consequences that entails.

What are the main changes with a licence for collection agencies?

• From March 2024, every collection agency must hold a licence.
• Collection agencies with licences will be added to a register.
• Collection agencies must also know what their rights and obligations are and comply with them.
• Using plain language and being transparent about the costs of collection activities.
• Compliance will be monitored by a system of supervision and enforcement.

When does a collection agency need a licence?

From 1 March 2024, the Quality of Collection Services Act is in all likelihood expected to come into force.

From then on, a collection agency will need a licence to be allowed to carry out its work.

For Breyta this licence will be no problem at all. Thanks to our many years of experience in the collection sector, we know how important personal service is.

Quality of Collection Services Act

The unique aim of this bill is to raise the quality of private out-of-court collection services provided by private collection agencies, bailiffs and collection lawyers.

The reason for the proposal is the problems in practice at some collection agencies. These can be unjustified claims or excessive collection costs. Aggressive and threatening language is also often used by rogue collection agencies.

Always engage a collection agency that works in line with the norms and values of decent people and, of course, the law. At Breyta we stand for personal service and transparent costs.

The Quality of Collection Services Act bill consists of the following points:

• Requires collection agencies to register in a special collection register. Makes it possible to set quality requirements for amicable collection services through lower-level regulations. Establishes a system of supervision and enforcement. Contains measures against the sale of debts and measures against the business model of buying up instalment claims.
• Requires collection agencies to register in a special collection register.
• Makes it possible to set quality requirements for amicable collection services through lower-level regulations.
• Establishes a system of supervision and enforcement.
• Contains measures against the sale of debts and measures against the business model of buying up instalment claims.