How much can a debt collector demand in installments.

MyKeyG

Hi all. I'm interested in finding out if there is any specific legal legislation ruling what percentage of disposable income a debt collection agency can demand from a person on welfare?

I saw a case recently where the debt collection agency were demanding 300 a month leaving the individual with roughly 40.50 per week.

It just seems that the individual is being left high and dry with regards to paying for opportunities that may arise for example putting away a few bob in case he one day has to move for a job. Any thoughts welcome.

slimjimmc

I don't think there is any specific law on that because afaik they can't demand anything; they can only request you pay whatever % they choose up to and including 100%. You are perfectly free to ignore their request since your debt is with whomever hired them not the debt collection agency itself. Debt collectors have no more legal power that you or me so they can't force you to pay anything (without them breaking a few laws that is, e.g. harassment). However, just like any Joe Soap they can take you to court in the hope of getting a judgement, but that costs money and time. I don't know anything about that case but, outside of court, I can't see how any debt agency could force someone to pay anything they don't agree to, sounds like a mutual settlement.
I may be wrong though.

MyKeyG

Thanks that's sort of what I was thinking. From what I heard the choice will ultimately be up to the Judge. This particular crowd are actually telling this individual that the Judge will definately side with them which I thought was beyond their right.

Our man in Havana

They can tell their client anything. There is absolutely no legislation governing debt collectors in Ireland. They make up their own rules as they go along.

You are under no obligation to deal with any debt collector. They have no powers above those of a private citizen. You are quite entitled to ignore them.

The worst that can happen is the original creditor will take the matter to court. Ultimately the judge will decide what you can pay. People on welfare are usually treated fairly by the judge and may not have to pay anything.

MyKeyG

Thanks guys this is helpfull stuff. He told me some of the things they said and I thought that's not right! I worked next to a Credit Control team for a year and a half in an office. I was working AP but I picked up on some of the tricks. It's just unfortunate the person in question is the anxious type.