Debt collectors seek recognition under the Data Protection Act
Published:Wednesday | December 4, 2024 | 12:05 AM
Stating that they play an important role in the functioning of Jamaica’s economy, debt collection agencies are pushing for greater recognition from the government so they can have greater leverage to recover monies on behalf of their clients.
Christopher Johnson, chairman of the newly formed Jamaica Debt Collection Association, JCDA, says more than 300 persons are employed as debt collectors, process servers and bailiffs, recovering a rough estimate of one billion dollars annually on behalf of a range of clients, including commercial banks, credit unions, furniture and appliance stores, court orders and utility companies.
“It’s a lot of money, man. The sector is big,” said Johnson, on the sidelines of a conference hosted by the JCDA in New Kingston, as he expounded on the debt collection sector’s contribution to a humming economy.
“If this money was not recovered, JPS and NWC would increase their bills, and banks would increase rates on their loans and credit cards. We serve as a protector and a buffer in the economy, and that’s why government should pay more attention to our sector,” Johnson said in an interview with the Financial Gleaner. JPS and NWC are utilities that distribute electricity and water, respectively, to all of Jamaica.
Johnson is managing director of Jamaica Collection and Recovery Services, which he describes as the biggest of eight large agencies with membership in the JCDA. The group also includes individual debt collectors, many of them being ex-members of the Jamaica Constabulary Force or the Jamaica Defence Force.
With the Data Protection Act coming into force, Johnson is calling for members of his association to be trained and recognised as data controllers.
“As debt collectors, we get access to a lot of data. We believe that the Data Protection Act can be the biggest threat to the viability of our business if we don’t adapt to it quickly. Without the data, we can’t collect. If the banks and credit unions don’t see us as controlling the data they are providing for us, we’re going to be out of business,” Johnson said.
He also called for a review of the Hire-Purchase Act of 1974, the statute under which vendor’s bailiffs must annually renew their operating licence.
“Every year we have to apply to the court for our vendor’s bailiff licence. They have to do an investigation every year. When you apply to the court there is a long waiting period, so you have to apply maybe a month or two before your licence expires,” Johnson said.
In comparison, he said, in Dade and Broward counties in Florida, United States, where he also operates, there is a one-time investigation by the police for debt collectors, after which they are licensed to operate for years.
Johnson also noted that it is easier to collect debts in Florida because collectors have easier access to gated communities there, unlike in Jamaica where even the police have difficulty accessing certain areas.
The JCDA conference discussed best practices in debt recovery and discussed registration as data collectors under the Data Protection Act.