There is very little regulation regarding collecting debts in Ireland. Unlicensed debt collectors are not obliged to comply with any code of conduct; as long as they recover the unpaid amounts the owner will be satisfied. Bullying and intimidation of debtors is a common occurrence as no laws are in place to prevent the agencies from doing their job.
Anyone can empathise with small business owners wanting to recover outstanding payments by legal and moral methods. Cash flow is vital for these small businesses to survive and the cost implications of pursuing a bad payer through the legal system is beyond their means. Unopposed legal proceedings are also very long and pricey.
It is pure frustration that eventually forces a business owner, who has done everything in his power to get his money back, to finally call in a collection agency. The owner no longer cares how he gets his money back as by now the relationship between the two parties has broken down completely. Many small and medium businesses understand that they cannot function with large sums of money outstanding and would be willing to look the other way just to able to survive.
The small claims court was hoped to have relieved the pressure on the legal system and assist in the recovery of money owed to persons. Unfortunately this did not give consideration to businesses who were owed money by another business. There is a relatively small amount that can be adjudged by the small claims court and is often not enough to recoup an amount owing to the business.
The snails pace of the judiciary process in the country makes it an onerous task to sue for any money owed to businesses and is unlikely to improve any time soon. An ethical set of laws is required to ensure the recovery of unpaid money through legitimate means without infringing on any persons rights. The economy is facing a tough period and insolvencies due to bad payments need to be prevented if possible.
The issue could have been improved with more thought when the small claims courts were introduced. Not too much benefit was applicable for small and medium business owners who could only claim small amounts from individuals. Expensive solicitors and lengthy court proceedings make using the current judicial system a poor method of recovering money for businesses.
The undeniably fierce nature and opposing generosity of this nation is well known. Many good hearted business owners have found themselves in dire financial crises as they try to help where they can. Proper protection of any persons entering into credit agreements is vital for the sake of the business and the creditor.
Although some progress has been made for collecting debts in Ireland, much more can be done. Unnecessary ill feelings and bad behavior by collection agencies that ruin once friendly relations can be avoided with proper controls. The unemployment rate will continue to rise as long as businesses fail due to unpaid accounts with no legitimate means of recovering them.