Draft legislation is pending that will implement a stricter framework for collection agencies in Greece, an initiative that will also reportedly establish tight regulations for law firms that now operate exclusively as such businesses, given that legal loopholes currently exclude attorneys or their representatives from supervision.
By S. Zisimos
Draft legislation is pending that will implement a stricter framework for collection agencies in Greece, an initiative that will also reportedly establish tight regulations for law firms that now operate exclusively as such businesses, given that legal loopholes currently exclude attorneys or their representatives from supervision.
The draft bill is being prepared by the relevant economy and development ministry in cooperation with the justice ministry, bar associations, the Consumer's Ombudsman and a personal data watchdog authority.
At present, firms operating as collection agencies are governed by a 2009 law. However, the trend over recent years has witnessed law firms operating as collection agencies. Out of the 29 companies registered as collection agencies with the relevant ministry, 16 have closed their doors.
Based on a ruling by the State Legal Service in 2012, including attorneys and law firms in the legal framework governing companies that contact citizens of their arrears - mostly hired by banks - is not compatible with the exercise of the legal profession. In fact, penalties are foreseen for attorneys and law firms that engage in such activities.