Regulations

Decree No. 96-1112 of December 18, 1996

Decree regulating the activity of persons carrying out the amicable recovery of debts on behalf of others.
OR:JUSC9620870D The Prime Minister, On the report of the Keeper of the Seals, Minister of Justice, Having regard to the Civil Code; Having regard to the penal code; Having regard to the insurance code; Having regard to law no. 84-46 of 24 January 1984 as amended relating to the activity and control of credit institutions; Having regard to law no. 91-650 of July 9, 1991 as amended reforming civil enforcement procedures; Having regard to the opinion issued on March 28, 1995 by the National Insurance Council; Having heard the Council of State (interior section), Decrees:

Item 1:

The provisions of this decree apply to natural or legal persons who, in a usual or occasional manner, even on an ancillary basis, carry out the amicable recovery of debts on behalf of others, with the exception of those who do so. under their professional status or within the framework of the regulation of their profession.

Section 2:

The persons mentioned in article 1 must prove that they have taken out an insurance contract guaranteeing them against the pecuniary consequences of the professional civil liability that they may incur as a result of their activity.
They must also prove that they hold an account in one of the credit institutions referred to in Article 18-1 of the aforementioned law of 24 January 1984 or one of the institutions or one of the establishments referred to in article 8 of the same law. This account must be exclusively assigned to the receipt of funds collected on behalf of creditors. The justification of the conditions required in the preceding paragraphs is ensured by written declaration of the interested parties, delivered or addressed, before any exercise, to the public prosecutor at the tribunal de grande instance in the jurisdiction of which they have the headquarters of their activities. At any time, the public prosecutor may verify that the interested parties comply with the obligations prescribed by this article.

Section 3:

The persons mentioned in article 1 can only proceed with amicable recovery after having concluded a written agreement with the creditor in which he is given power to receive on his behalf.
This agreement specifies in particular:
1° The basis and the amount of the sums due, with the distinct indication of the various elements of the receivable(s) to be recovered from the debtor;
2° The terms and conditions of the guarantee given to the creditor against the pecuniary consequences of the civil liability incurred as a result of the debt collection activity;
3° The conditions for determining the remuneration payable by the creditor;
4° The conditions for repayment of the funds collected on behalf of the creditor.

Clause 4:

The person in charge of amicable collection sends the debtor a letter containing the following information:
1° The names or company names of the person in charge of amicable collection, his address or registered office, the indication that he carries out a collection activity friendly.
2° The names or company names of the creditor, his address or his registered office.
3° The basis and the amount of the sum due in principal, interest and other accessories, distinguishing between the various elements of the debt, and excluding the costs which remain payable by the creditor pursuant to the third paragraph of the article 32 of the aforementioned law of July 9, 1991.
4° The indication of having to pay the amount due and the terms of payment of the debt.
5° The reproduction of the third and fourth paragraphs of article 32 of the aforementioned law of July 9, 1991.
The references and date of dispatch of the letter referred to in the preceding paragraph must be recalled during any other approach with the debtor with a view to amicable collection.

Clause 5:

A receipt is given to the debtor for any payment.
The funds received by the person in charge of collection must give rise, unless otherwise agreed, to a repayment within one month of their effective collection.

Section 6:

The person in charge of recovery must, when he has obtained even partial payment from the debtor, inform the creditor, since this payment does not result from the execution of an installment payment agreement already known to the creditor. . Unless otherwise stipulated, it must also keep him informed of any proposal by the debtor to discharge his obligation by any means other than immediate payment of the sum claimed.

Clause 7:

Any person who, carrying out the activity referred to in Article 1, will be punished with the fine provided for 5th class contraventions:
1° Has not complied with the obligations provided for in Article 2;
2° Will have omitted one of the mentions provided for in article 4 in the letter addressed to the debtor.
In the event of recidivism, the penalty of fine provided for the recidivism of 5th class contraventions is applicable.

Section 8:

This decree will enter into force on the first day of the sixth month following its publication in the Official Journal of the French Republic.

Section 9:

The Keeper of the Seals, Minister of Justice, the Minister of Economy and Finance and the Minister of Small and Medium-Sized Enterprises, Trade and Crafts are responsible, each as far as he is concerned, for the execution of the this decree, which will be published in the Official Journal of the French Republic.

By the Prime Minister: Alain JUPPE
The Keeper of the Seals, Minister of Justice, Jacques TOUBON
The Minister of Economy and Finance, Jean ARTHUIS
The Minister of SMEs, Trade and Crafts, Jean-Pierre RAFFARIN