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DEBT COLLECTION (GENERAL) REGULATIONS 2020

BR 4 / 2020

PART 1PRELIMINARY

Citation

1 These Regulations may be cited as the Debt Collection (General) Regulations 2020.

Interpretation

2 In these Regulations—

“the Act” means the Debt Collection Act 2018;

“application fee” means the debt collection licence fee prescribed by the Government Fees Regulations 1976;

“Authority” means the Debt Collection Licensing Authority established under section 4 of the Act;

“debt collection licence” or “licence” has the meaning given under section 2 of the Act;

“debt collector” has the meaning given under section 2 of the Act;

“fit and proper person” means the requirements under regulation 5(1) and set out in Schedule 2;

DEBT COLLECTION (GENERAL) REGULATIONS 2020

“Tribunal” means the Debt Collection Appeal Tribunal constituted under section

31 of the Act.

PART 2LICENSING OF DEBT COLLECTORS

3. Application for a licence

(1) A person intending to carry on a business as a debt collector may make an application to the Authority for a debt collection licence as provided in Form 1 set out in

Schedule 1 — .

(2) The application for a licence must be accompanied by the documents required under section 8(2) of the Act and the application fee.

(3) The Authority shall consider an application made under paragraph (1) within a period of 60 business days—

(a) from the date of receipt of the application; or

(b) from the date of receipt of the last information or document requested, where the Authority has requested further information or documents under section 8(2) of the Act.

4. Adjustment of fees compliance form

(1) An application for a licence under regulation 3(1) by a person to whom section 50(1) of the Act applies shall be further accompanied by Form 1.1 set out in Schedule 1, which shall include the information under paragraph (2).

(2) Form 1.1 referred to under paragraph (1) shall contain the following information—

(a) the name of the debt collection business;

(b) in the case where the applicant is a company or limited liability company, the certificate of incorporation reference number or the certification of formation reference number;

(c) the registered or physical address of the debt collection business;

(d) the date of the application for the debt collection licence;

(e) the details of the debt collection fees or the commission adjustment pursuant to section 50(3) of the Act, which must include—

(i) the file number and date of the debtor records held by the debt collector;

(ii) the creditor contract entered into for purposes of the debt and the date the contract was entered into;

(iii) the amount of original debt;

(iv) the date and amount of last payment;

DEBT COLLECTION (GENERAL) REGULATIONS 2020

(v) the date and amount of the original fee and commission charged by the debt collector;

(vi) the date and amount of the fee and commission adjusted in accordance with paragraphs (A) and (B) of section 50(3)(a)(i) of the Act;

(f) such other information or documentation as the Authority may determine.

(3) The person shall submit Form 1.1 together with such documents and information in support of his entries as the Authority may require.

5. Grant of licence

(1) Subject to the Act and these Regulations, the Authority may, upon—

(a) receipt of an application duly made in accordance with regulation 3;

(b) receipt of all such information and documents as required under section 8 of the Act;

(c) upon its consideration whether that the applicant is a fit and proper person as determined by the criteria under Schedule 2; grant or refuse to grant the application for a licence to the applicant.

(2) The Authority shall, where it determines to grant the applicant a licence under paragraph (1), issue to the applicant a debt collection licence in Form 2 as set out in

Schedule 1 — .

(3) The debt collection licence shall set out the following information—

(a) the name of the debt collector;

(b) the address at which the debt collector will carry on business;

(c) any conditions or restrictions attached to the licence;

(d) the date on which the licence was granted; and

(e) the date on which the licence will expire, and the licence shall be signed by the Debt Collection Officer, or such other member of the Authority as the Minister may designate by a notice published in the Gazette.

(4) A debt collection licence may be subject to such conditions and restrictions as provided under regulation 9 as the Authority may determine.

Duration of licence

6 Subject to regulation 9, the debt collection licence shall be for the duration of two years.

7. Refusal to grant licence

(1) Where the Authority refuses to grant a licence in respect of an application made under regulation 3, it shall—

DEBT COLLECTION (GENERAL) REGULATIONS 2020

(a) notify the applicant in writing, giving reasons for its decision; and

(b) give the applicant a period of 30 days within which to make written representations to, or request a hearing by, the Authority.

(2) The Authority shall take into consideration any representations made under paragraph (1)(b) and shall notify the applicant of its decision in writing.

(3) Where the further decision of the Authority is to refuse to grant a licence, the notice shall give reasons for the decision, and inform the applicant that it may appeal the decision to the Tribunal.

(4) The decision of the Authority under paragraph (3) has effect notwithstanding that it may be appealed.

(5) A person whose application is refused by the Authority may reapply under regulation 3.

8. Renewal of licence

(1) A debt collector may apply to the Authority for the renewal of its licence not less than 60 days before the 31 March in the year the licence is to expire.

(2) The application for renewal of a licence shall—

(a) be in Form 1, with the indication made that the application is for renewal of the licence;

(b) be accompanied by the documents referred to in regulation 3(2);

(c) be accompanied by the total amount of prescribed renewal fee.

(3) Where the Authority refuses to renew a licence, regulation 7 applies with the necessary modifications.

9. Authority may attach or vary conditions or restrictions

(1) In accordance with section 9(4) and 10 of the Act, the Authority may, with respect to an application made under regulation 3, where it considers it appropriate—

(a) issue a licence subject to a condition or restriction with respect to—

(i) the scope of the licence;

(ii) the manner of operation of the debt collection business;

(iii) the duration of the licence; or

(b) at any time attach or vary a condition or restriction on the licence as provided in subparagraph (a).

(2) Where the Authority intends to act in accordance with paragraph (1)(b), it shall—

(a) notify the debt collector in writing of its intention, specifying the condition or restriction it intends to attach or vary, giving reasons for its decision,

DEBT COLLECTION (GENERAL) REGULATIONS 2020

and stating the date on which the proposed attachment or variation is to take effect; and

(b) give the debt collector a period of 30 days within which to make written representations to, or request a hearing by, the Authority.

(3) The Authority shall take into consideration any representations made under paragraph (2)(b) and shall notify the debt collector of its decision in writing.

(4) Where the Authority decides to attach or vary a condition or restriction, it shall publish on its website, and in such other manner as it considers appropriate, a notice stating the condition or restriction that has been attached or varied and the date on which the change is to take effect.

10. Applying to vary or remove condition or restriction

(1) A debt collector may apply to the Authority to vary or remove a condition or restriction attached to its licence.

(2) An application under paragraph (1) shall—

(a) state the condition or restriction desired to be removed;

(b) state the reasons the condition or restriction should be considered as no longer applicable to the debt collector;

(c) where necessary, be accompanied by relevant documents in support of subparagraph (b) and such other information as the Authority may require.

(3) The Authority may, after it has received and considered the application under paragraph (1), together with supporting documents, require the debt collector and any person employed by or acting for the debt collector to appear before the Authority and provide clarification with respect to its application.

(4) In making a determination on the application made under paragraph (1), the Authority may—

(a) decide to grant the application to vary or remove such condition or restriction;

(b) refuse to grant the application to vary or remove such condition or restriction and state its reasons for the refusal; or

(c) vary the applicable condition or restriction attached to the licence in such manner as it shall determine and state reasons for such variation.

(5) The debt collector shall return the debt collection licence to the Authority within a period of seven days after the Authority has made a determination under paragraph

(4), and the Authority shall issue to the debt collector a revised licence in accordance with its determination without altering the duration of the licence.

(6) Where the debt collector fails to return the licence as required under paragraph

(5), the debt collection licence shall be deemed cancelled at the end of the period stated under paragraph (5).

DEBT COLLECTION (GENERAL) REGULATIONS 2020

(7) Where the Authority decides to remove or vary a condition or restriction, it shall publish on its website, and in such other manner as it considers appropriate, a notice stating the condition or restriction that has been removed or varied, and the date on which the change is to take effect.

11. Suspending a licence

(1) The Authority may suspend the licence of a debt collector where the debt collector —

(a) has failed to comply with a condition or restriction attached to the licence;

(b) has failed to comply with the codes of conduct issued by the Minister;

(c) is no longer a fit and proper person as defined in Schedule 2.

(2) Where the Authority intends to act in accordance with paragraph (1), it shall—

(a) notify the debt collector in writing of its intention, giving reasons for its decision, and stating the day on which the proposed suspension is intended to take effect; and

(b) give the debt collector a period of 30 days within which to make written representations to, or request a hearing by, the Authority.

(3) The Authority shall take into consideration any representations made under paragraph (2)(b) and shall notify the debt collector of its decision in writing.

(4) Where the Authority decides to suspend the licence, it shall give such direction to the debt collector as the Authority considers appropriate. .

(5) Where the notice under paragraph (4) includes a direction, the notice shall—

(a) specify the period within which the debt collector must comply with the direction; and

(b) inform the debt collector that its licence may be revoked under regulation

12 if the debt collector fails to comply with the direction within the period specified.

12. Revoking a licence

(1) The Authority may revoke the licence of a debt collector where the debt collector has failed, within the time specified, to comply with a direction given under regulation 11(4).

(2) Where the Authority intends to act in accordance with paragraph (1), it shall—

(a) notify the debt collector in writing of its intention, giving reasons for its decision, and stating the day on which the proposed revocation is intended to take effect;

(b) give the debt collector a period of seven days within which to make written representations to, or request a hearing by, the Authority.

DEBT COLLECTION (GENERAL) REGULATIONS 2020

(3) The Authority shall take into consideration any representations made under paragraph (2)(b) and shall notify the debt collector of its decision in writing.

(4) Where the Authority decides to revoke the licence, the notice shall give reasons for the decision, state the date on which the revocation will take effect, and inform the debt collector that it may appeal the decision to the Tribunal.

(5) The decision of the Authority under paragraph (4) has effect notwithstanding that it may be appealed.

(6) The Authority shall publish on its website, and in such other manner as it considers appropriate, a notice that the licence of the debt collector will be revoked, stating the date on which the revocation will take effect.

PART 3TRUST ACCOUNTS

13. Duty of debt collectors in respect of money deposited in trust accounts

(1) Where a debt collector, in respect of any service or transaction provided on behalf of a creditor, in the course of his business receives or collects an amount of money to be deposited in a trust account for or on behalf of such creditor, the debt collector—

(a) shall, before the expiration of the day next following the day of receipt or collection of the amount, being a day that is a business day—

(i) record the amount, or cause the amount to be recorded in its record of accounts so as to show particulars of the receipt or collection separately from records of money received, collected or held on his own account or for or on behalf of any other person; and

(ii) pay the whole of the amount, or cause the whole of the amount to be paid into a trust account; and

(b) shall not withdraw or permit the withdrawal of the whole or any part of the amount except in payment of—

(i) the expenses, commission, fees and other charges of or incidental to the service or transaction; and

(ii) any moneys owing to the debt collector by the creditor to which the debt collector is lawfully entitled.

(2) A debt collector shall within 14 days after—

(a) any trust account is opened by him notify in writing the Authority of the name of the trust account and the name and address of the bank where the account is kept;

(b) any change of the name of that trust account or the bank where the trust account is kept, so notify the Authority of the new name of the trust account and the name and address of that bank.

DEBT COLLECTION (GENERAL) REGULATIONS 2020

14. Period within which trust account money is to be paid out

(1) Every debt collector shall within 14 days of demand in writing made by the creditor, and in any event unless the creditor otherwise agrees in writing, within 45 days of receipt of the money collected in respect of the service or transaction, pay the balance of that money, if any, to the creditor or as he may direct in writing.

(2) For purposes of section 15(2) of the Act, a reasonable time within which a debt collector is to pay money held in a trust account shall not exceed the time provided in paragraph (1).

Prohibition on payment from trust account

15 Money paid into a trust account in accordance with this Part is not—

(a) available for payment of the debts of a debt collector or to any other creditor of the debt collector; or

(b) liable to be attached or taken into execution under the order or process of any court whatsoever at the instance of any other creditor.

16. Duty of debt collector as to records of trust accounts

(1) A debt collector—

(a) shall provide the correct account balances—

(i) of particulars of all trust money; and

(ii) of particulars of withdrawals and payments of trust money made by him or anyone employed by him;

(b) shall keep the accounts mentioned in subparagraph (a) in such manner that they can be conveniently and properly audited; and

(c) shall correctly balance those accounts at the end of each month.

(2) Every entry in the records of accounts referred to in paragraph (1) kept at any place of business of the debt collector shall be deemed, unless the contrary is proved, to have been made by or with the authority of the debt collector.

17. Financial statements relating to trust accounts

(1) A debt collector shall prepare an annual financial statement of its trust account as required under section 15(6)(b) of the Act.

(2) The annual financial statement for each financial year shall be filed with the Authority on or before the 31 March (“the filing date”).

(3) The debt collector may apply to the Authority for an extension of the filing date, but the Authority shall not allow an extension beyond four months after the end of the financial year.

(4) In addition to the requirement to create and maintain financial records, every debt collector shall maintain all records and documents created or received while engaged

DEBT COLLECTION (GENERAL) REGULATIONS 2020

in the business authorized by the licence for at least six years after the records were created or received.

18. Inspection of records

(1) All books and records of accounts or other written records that are required to be kept under these regulations by a debt collector shall be open to inspection by any person authorized by the Minister under section 6(4) of the Act either generally or in any particular case.

(2) Upon the production of his written authority, a person authorized as provided in paragraph (1) may require a debt collector or in his absence any employee or agent of the debt collector for the time being having the apparent control or charge of the office or place of business of the debt collector—

(a) to produce for inspection—

(i) all books, papers, accounts or other documents relating to the trust account of the debt collector;

(ii) all records of accounts required to be kept by the debt collector in accordance with regulation 16;

(iii) all contracts, agreements or other documents relating to any transaction by or with the debt collector in connection with its business as a debt collector, in the possession, custody or control of the debt collector; and

(b) to furnish all authorisations and orders to the bankers by the debt collector as may be reasonably required of him; and

(c) to answer any questions or supply any information with respect to any of those books, papers, accounts, written records, contracts, agreements or other documents or any entry in any of them.

(3) Any inspector referred to in paragraph (2) may make notes, copies or extracts of or from any of those books, papers, accounts, written records, contracts, agreements or other documents so referred to.

(4) A person who—

(a) wilfully delays or obstructs any inspector so authorized in the exercise of his powers or functions under this regulation;

(b) on demand refuse or fails to produce without lawful excuse any books, papers, accounts, written records, contracts, agreements or other documents required for inspection under this regulation in his possession, custody or control;

(c) on demand refuses or fails to furnish any authorities and orders to bankers as may be reasonably required of him under this regulation; or

(d) on demand refuses or fails without lawful excuse to answer truthfully any questions relating to any books, papers, accounts, written records,

DEBT COLLECTION (GENERAL) REGULATIONS 2020

contracts, agreements, or other documents required for inspection under this regulation, commits an offence under this regulation.

PART 4COMPLAINTS PROCEDURE

19. Complaints by debtors

(1) Subject to regulation 21, a complaint under section 23 of the Act may be made to the Authority.

(2) A complaint may be made by—

(a) a debtor adversely affected by the debt collector’s breach of Part 4 of the Act;

(b) a person alleged to be a debtor but who is wrongfully targeted by a debt collector; or

(c) any other person on behalf of the person referred to in subparagraph (a) and (b).

20. Form of complaint

(1) A complaint made under regulation 19 shall be made in writing in the form approved by the Authority.

(2) A complaint shall contain the following information—

(a) the name and address of the complainant;

(b) the name and address of the debt collector being complained against;

(c) the name and address of the creditor for whom the debt collector is acting;

(d) the details and date of the contract entered into with the creditor under which the debt arose or alleged to arose;

(e) the amount of the original debt and the balance outstanding;

(f) the amounts of payments towards the debt and the date of payment; and

(g) the grounds for the complaint against the debt collector.

(3) The complaint shall be accompanied by—

(a) all documents in support of the information provided under paragraph (2);

(b) a copy of the written complaint the debtor lodged with the debt collector as required under regulation 21; and

(c) copies of any responses the debtor received from the debt collector following the lodging of his written complaint with the debt collector.

DEBT COLLECTION (GENERAL) REGULATIONS 2020

21. Debtor to attempt to resolve complaint with debt collector

(1) Subject to regulation 22, a debtor shall not submit a complaint to the Authority against a debt collector under regulation 19 until after he has submitted a written complaint to the debt collector with respect to the same matters as in the complaint to the Authority and has either—

(a) received no response from the debt collector regarding his complaint 14 days after lodging the complaint; or

(b) received a response from the debt collector that does not sufficiently address the complaint.

(2) The debtor shall lodge a complaint with the debt collector by delivering his complaint in writing to the debt collector or an employee or agent of the debt collector at the debt collector's registered place of business during business hours.

(3) Where a debtor lodges a complaint under paragraph (2), the debt collector or an employee or agent of the debt collector who receives the complaint shall give the debtor a receipt of acknowledgement of the complaint lodged.

(4) Where a debtor seeking to lodge a complaint with a debt collector under this Part—

(a) fails to find the registered place of business of the debt collector;

(b) does not find the registered place of business open for three consecutive business days; or

(c) fails to lodge the complaint due to the refusal of the debt collector or the debt collector's employee or agent to accept the written complaint, the debtor may refer the matter to the Authority as provided in paragraph (5).

(5) A debtor who has failed to deliver a letter of complaint to a debt collector due to any of the reasons given in paragraph (4) may deliver the written complaint to the Authority, together with a covering letter requesting that the Authority to forward the written complaint to the debt collector and giving details of the reasons for the debtor's failure to deliver the written complaint to the debt collector.

(6) Where the Authority receives a debtor's written complaint under paragraph (2), it shall require the debt collector—

(a) to take delivery of the written complaint; and

(b) give reasons in writing for the failure to take delivery of the written complaint from the debtor.

(7) A debt collector who fails to take delivery of a written complaint under paragraph (4) commits an offence under this regulation.

DEBT COLLECTION (GENERAL) REGULATIONS 2020

Urgent complaints

22 Notwithstanding regulation 21, a debtor may lodge an urgent complaint directly with the Authority in the case where the complaint arises from the following circumstances—

(a) the debtor is being harassed or oppressed by the debt collector—

(i) with the use or threat of violence or harm to him as provided under section 16(2)(a) of the Act;

(ii) with the use or threat of false information being spread against him as provided in section 16(2)(b) of the Act;

(b) the debtor is being threatened with—

(i) allegations that the debtor committed a crime or other conduct to disgrace the debtor as provided under section 17(2)(e) of the Act;

(ii) false communications of his credit information as provided under section 17(2)(f) of the Act.

Authority to investigate complaint

23 Where the Authority receives a complaint under this Part, it shall cause a preliminary analysis of the complaint to be made as provided under section 23 of the Act and may proceed to conduct any investigation of the complaint as provided in section 25(1)

(a) of the Act.

Penalty for breach of regulations

24 A debt collector who neglects or fails to comply with the requirements of these regulations commits an offence and is liable on summary conviction to a fine of $25,000.

DEBT COLLECTION (GENERAL) REGULATIONS 2020

SCHEDULE 1

(regulation 3) DEBT COLLECTION LICENCE APPLICATION

[FORM 1]

1. Date of application

2. New application for / renewal

3. of debt collection licence (delete what is not applicable)

4. Date of birth of an applicant

5. who is an individual

6. certificate of formation/ registration of limited partnership reference number

7. address of applicant

the applicant has not been declared bankrupt or insolvent and has not been a director of a company that has been declared insolvent

8. Statement confirming that

the applicant has not been convicted of a financial crime or convicted of an offence where violence, dishonesty, extortion or intimidation is an element

9. Names of persons providing

10. character references

bank in which trust account is held

11. DEBT COLLECTION (GENERAL) REGULATIONS 2020

12. accountant who will provide statements of financial affairs

13. Name of professional body the

14. debt collector is a member of in relation to work as a debt collector

15. what is not applicable)

16. the debt collector has contracted with or intends to contract with

17. employed or to be employed Name of personnel ranks or positions

18. documents

19. as a credit reporting agency?

debt collection licence fee Accountant General]

20. DEBT COLLECTION (GENERAL) REGULATIONS 2020

accompanying this application or otherwise furnished in support hereof are true and correct, and confirm that if this application is granted I/we shall at all times comply with the requirements and provisions of the Debt Collection Act 2018 made thereunder or any amendments thereto, which may be made from time to time.

Dated this ………………………………..day of …………………………………………20...

By …………………………………………………………………………………………………………

Member/Partner of………………………………………………………………………………

..……………………………………………………………………………………………………....

Signed …………………………………………………………………….

Position ………………………………………………………………….

Witness:

Name…………………………………………………………………………………………………

Position……………………………………………………………………………………………...

Stamp and date of receipt of Application:

DEBT COLLECTION (GENERAL) REGULATIONS 2020

(regulation 4(1)) DEBT COLLECTION ADJUSTMENT OF FEES / COMMISSION COMPLIANCE FORM

(PURSUANT TO SECTION 50(3) OF THE ACT)

[FORM 1.1]

Name of Debt Collection Business: ....................................................................................................... Certificate of Incorporation: ....................................................................................................... Address of Debt Collection Business: ....................................................................................................... Date of Application for Debt Collection Licence: .......................................................................................................

Details of debt collection fees / commission adjustment pursuant to section 50(3) of the Act:

Debtor File Creditor Amount of Date and Date and Date and number and contract and original debt amount of amount of the amount of the date date last payment debt debt collector’s collector’s adjusted fee / original fee / commission commission

DEBT COLLECTION (GENERAL) REGULATIONS 2020

Additional information or documents Enclose a copy of application fee receipt and date of payment I/We confirm that all particulars provided above and in the documents accompanying this application or otherwise furnished in support hereof are true and correct, and confirm that if this application is granted I/we shall at all times comply with the requirements and provisions of the Debt Collection Act 2018 made thereunder or any amendments thereto, which may be made from time to time.

Dated this ………………………………..day of …………………………………………20...

By…………………………………………………………………………………………………………

Member/Partner of………………………………………………………………………………

..……………………………………………………………………………………………………....

Signed …………………………………………………………………….

Position ………………………………………………………………….

Witness:

Name…………………………………………………………………………………………………

Position……………………………………………………………………………………………...

Stamp and date of receipt of Application:

DEBT COLLECTION (GENERAL) REGULATIONS 2020

(regulation 5) DEBT COLLECTION LICENCE

[FORM 2]

Certificate of Registration No...........................................

[Name]

...................................................................................................................................... is hereby registered as a debt collector under the Debt Collection Act 2018 to provide debt collection services in Bermuda at the following address ....................................................................................................................................... ....................................................................................................................................... This registration is for the period.......................................... to ....................................., subject to the provisions of the Debt Collection Act 2018. Conditions applicable / not applicable* Restrictions applicable / not applicable* .................................................................................................. Debt Collection Officer Debt Collection Licensing Authority

.................................................................................................. [Stamp] [Minister of Home Affairs]

* Where conditions or restrictions are applicable, they shall be stated on a separate page attached to the licence.

DEBT COLLECTION (GENERAL) REGULATIONS 2020

SCHEDULE 2

(regulation 5(1)) FIT AND PROPER CRITERIA FOR DEBT COLLECTORS

1. Debt collectors to be fit and proper persons

(1) The Authority shall, in determining whether an applicant for a debt collection licence is a fit and proper person, have regard to the provisions of this paragraph.

(2) In determining whether an applicant is a fit and proper person to hold a debt collection licence, regard shall be had to his integrity, reliability and honesty, to his competence and soundness of judgement for fulfilling the responsibilities as a debt collector, and to whether the interests of creditor clients or potential debtors are, or are likely to be, in any way threatened by his holding a debt collection licence.

(3) Without prejudice to the generality of the foregoing provisions, regard may be had to the previous conduct and activities in business or financial matters of the debt collector in question and, in particular, to any evidence that he has—

(a) committed an offence involving violence, dishonesty, extortion or intimidation;

(b) contravened any provision made by or under any enactment appearing to the Authority to be designed for protecting members of the public against financial loss due to dishonesty, incompetence or malpractice by persons concerned in the provision of—

(i) business or financial services;

(ii) management of companies;

(iii) such other services as the Authority may deem appropriate;

(c) engaged in any business practices appearing to the Authority to be deceitful or oppressive or otherwise improper (whether lawful or not) or which otherwise reflect discredit on his method of conducting business;

(d) engaged in or has been associated with any other business practices or otherwise conducted himself in such a way as to cast doubt on his competence and soundness of judgement.

2. Debt collectors’ continuing compliance with fit and proper requirements

(1) In determining whether a debt collector continues to be a fit and proper person, the Authority shall take into account any failure by the debt collector to comply with the provisions of—

(a) the Act and all subsidiary legislation made under the Act;

(b) the codes of professional conduct and ethics that are issued by the Authority;

DEBT COLLECTION (GENERAL) REGULATIONS 2020

(c) the standards, methods, and procedures issued by the Authority to be followed by debt collectors that are issued by the Authority.

(2) A debt collector shall not be regarded as conducting his business in a prudent manner unless he maintains or, as the case may be, will maintain adequate accounting and other records of his business and has developed policies and procedures pertaining to his obligations to debtors and creditors in accordance with section 8(2) of the Act.

(3) The records and systems shall not be regarded as adequate unless they are such as to enable the debt collection business to be prudently managed and the debt collector to comply with the duties imposed on him by or under the Act or other provisions of law.

Made this 30th day of January 2020

Minister of Home Affairs

[Operative Date: 31 January 2020]