Wednesday 28 September 2016

Central Bank seeking debt collection services for resolution fund money

Published 17/06/2015 | 02:30

The Central Bank
The Central Bank

The Central Bank is looking to hire debt collection services to recoup money due from industry and banking levies.

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The bank has published a tender notice requesting the provision of debt collection legal services for levies which remain due to the Central Bank and the Credit Institutions Resolution Fund (CIRF).

The fund was set up as part of the Credit Institutions (Resolution) Bill, which was designed to ensure that the Ireland is better prepared for future banking collapses and is able to resolve troubled institutions in a less expensive way.

The fund is designed to finance future rescues, and include contributions from credit unions.

"The Central Bank is seeking tenders from suitably qualified professionals for the provision of Specialist Debt Collection Legal Services in respect of levies which remain due to the Central Bank and the Credit Institutions Resolution Fund," the tender notice said.

"The ultimate aim is to enhance its debt collection success rate by introducing a time bound escalation process to legally pursue, where instructed and appropriate, unpaid civil debts."

Levy contributions must be paid within 28 days of the date of issue of a levy notice. During the 2014 levy period, levy contributions ranged from a maximum of €4.5m to a minimum of €515.

The regulations state that a levy should be paid no later than February 28 of the year in question.

Levies payable by credit unions to the CIRF ranged from €170,000 to €618.00 in respect of the 2014/2015 levy period.

The tender notice said the sucessful company appointed to the role will have to issue a letter of demand, on an annual basis, to a maximum of 1,000 regulated entities.

It may also be involved in the intiation of legal proceedings through the courts

"The case load of legal proceedings is expected to stabilise at up to 20 "live" cases across the Term of the Agreement," the tender notice said.

Irish Independent

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