Warning over state debt recovery plan

Affordable and sustainable repayment schedules are required to protect vulnerable consumers should a proposed state debt collection agency be established.

Public Expenditure Minister, Brendan Howlin has conducted a review of debt collection systems in the HSE, the Courts Service, local authorities and the Departments of Social Protection and Agriculture to identify potential savings that could be derived from the establishment of a central debt collection agency.

The report compiled by Mr Howlin’s Department outlines how more than €230m could be recouped from such a system but debt expert Michael Culloty of the Money Advice and Budgeting Service (MABS) says that any such organisation must take the needs of vulnerable debtors into account and ensure that they are provided with an affordable repayment schedule.