Automatic Debt Collection
Pfäffikon SZ, Switzerland – Collection agencies and bailiffs become increasingly discredited in the Netherlands. In an open field, they try to pressure the weakest and to abuse regularly the situation. However, the problems of this group of professionals already play a little longer, and the recent outpourings are no surprise.
Supervision
The call for additional supervision of debt collection agencies and bailiffs is slowly but surely getting louder. The integrity is hard to find at debt collection, and bailiff’s offices and the Dutch AFM could certainly play an additional role here. Apparently, the current supervision is failing. But as often, a tougher position of the AFM does not solve the problem. The consumer frequently relies on the magical powers of the financial watchdog which often leads to disappointment.
Plundering
Plundering third money accounts, or so-called quality accounts should become punishable. In the past, more debt collection agencies have been guilty of this form of enrichment. In addition, the costs charged by bailiffs and debt collection agencies in the Netherlands are often disproportionately high. Here, curators are also guilty, but this aside. Not to mention the unexpected intimidating activities at the door by a muscular man in a t-shirt. Collection agencies and bailiffs –unfortunately– are limping along behind in terms of innovation.
Niche
Meanwhile, the financial world has been flooded with all kinds of innovations in the field of financial services. It, therefore, surprises me that no one has jumped into the niche of the world of collecting money. There is little financial creativity required to achieve entirely new ideas that put the task of the bailiff c.q. debt collection agency in a better light. Additionally, the ‘client’ should benefit from a solution that he actually can use. In this branch of sport, Fintech can be of great value and save a lot of costs. The structure of the industry should be redesigned as well.
The time has come that debt collection agencies and court bailiffs look in the mirror. The industry is hopelessly out of date in many respects and struggles with image and funding problems due to the many scandals. Some agencies attempt to keep their heads above water by defrauding the weakest, and this is a step too far. The industry needs to be renewed and has to go a long way to regain the lost confidence.
It remains for me to wish you a good weekend.
Jan Dwarshuis is CIO at Thirteen Asset Management AG. Dwarshuis writes his columns in a personal capacity. Professionally, he holds positions in major European, American and Russian stock funds. The information in his columns is not intended as professional investment advice or a recommendation to make certain investments. At the time of writing, he has no position in above mentioned shares and has no intention of doing so in the next 72 hours.
