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Zagreb - The state neither controls debt collection agencies nor protects debtors, the opposition said on Thursday in a debate on new rules for debt collectors, while the ruling majority denied this.
For eight years at least, citizens have been left to "a predatory form of coercion in debt payment," Sandra Benčić (We Can!) said, adding that her party has made six requests in parliament that consumer loans be exempted from sale to a third legal entity which is not a credit institution.
Speaking of the legislative amendments, she said it was good that agency licencing was being introduced but asked for introducing checks for the origin of the capital used to buy debts.
"Someone opens an agency with a HRK 20,000 down-payment... and the next day buys a bank's claims in the amount of HRK 30 million. Nobody asks them where the HRK 30 million came from. That's a field for money laundering and you continue to allow it," Benčić said.
Boris Lalovac (Social Democratic Party) asked why the state did not check the origin of the money debt collection agencies used as stock capital. The amendments don't protect debtors because the debt market will disappear, he said.
This law should have been adopted seven years ago when it would have made sense, said Zvane Brumnić (Social Democrats). He called on the Finance Ministry to consider limiting the selling price and ways of allowing citizens to buy their debts and then sell them.
Davor Dretar (Homeland Movement) said that by failing to regulate the work of debt collection agencies, the state allowed debt bondage over small amounts of money.
Grozdana Perić of the ruling HDZ denied the opposition's claims that the amendments did not envisage checking the origin of capital, saying the agencies will be controlled by the central bank and the financial inspectorate.
The amendments ensure a high level of consumer protection and ban their harassment at home and at work, she said.
The amendments regulate the work of agencies specialised in debt buying and collection by introducing the obligation that they offer measures which facilitate repayment, said Davor Zoričić, state secretary at the Finance Ministry.
In future, a debtor will have to be notified of the intention to buy their debt as well as after it was bought, he added.