The view of maintaining the informal debt collection industry but with some form of regulation of the conduct and activities of the debt collectors has received overwhelming support from stakeholders such as the Judiciary, Government departments, Non- Governmental Organizations, Business Community, Legal Practitioners and Individual members of the public. Almost all are in agreement that regulation was the only way forward.

However there are differing views on the form and structure of the regulation to be adopted. There are fears that a regulatory system would relieve the pressure on the debtors to meet their financial obligations. It has been submitted that whatever regulating mechanism to be put in place must not encourage debtors to delay or avoid meeting their obligations. The majority of cases handled by debt collectors relate to members of the public who have broken payment agreements and often do everything to avoid meeting their responsibilities. The regulatory framework must balance the interests of the creditor, the debtor and the debt collector.

A number of issues pertaining to the structure of the regulatory framework to be adopted do arise. These relate to the qualifications of a debt collector, composition and functions of the regulatory authority, training needs of debt collectors, requirements for enrolment in training courses, operation of trust accounts and contributing to a compensation fund.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.