1st Article - The provisions of this decree apply to individuals
or corporate entities, who regularly or occasionally, even as
a secondary activity, undertake the out-of-court recovery of debts
for others, except those who do so on account of their professional
status or within the framework of the regulations of their profession.
2nd Article - The bodies mentioned in the 1st Article
must prove that they have taken out professional indemnity insurance.
They must also hold an account in one of the credit establishments
as described in Article 18-1 of the law of 24th January 1984,
above-mentioned, or the one of the institutions or the one of
the establishments as described in the 8th Article of the same
law. This account must be exclusively reserved for funds collected
on behalf of the creditors. Conformity to the preceding conditions
is ensured by written declaration, handed or sent to the Procureur
de la Republique of the Tribunal de Grande Instance where the
Registered Office is situated. At any time, le Procureur de la
Republique can check that the affected parties have conformed
with the obligations set out in this Article..
3rd Article - The bodies mentioned in the 1st Article
can only carry out out-of-court debt recovery after entering into
a written agreement in which he is empowered by the creditor to
collect on his behalf. This agreement sets out :
1 The basis and amount of the debt, detailing the different parts
of the debts to collect from the debtor;
2 The terms and conditions and details of the professional indemnity
insurance protecting the creditor against the financial consequences
caused by the activity of recovery of debts;
3 The conditions setting out the fees to be paid by the creditor;
4 The conditions setting out the handing over of the funds collected
on behalf of the creditor;
4th Article - The person in charge of the out-of-court
recovery of debts sends to the debtor a letter containing the
following:
1 The name or registered name of the body in charge of the out-of-court
recovery of debts, his address or his registered office, a statement
that he carries out the activity of out-of-court recovery of debts;
2 The name or registered name of the creditor, their address or
their registered office;
3 The basis and amount of the principal, interest and other charges
with a breakdown showing the different parts of the debt, and
excluding the costs which remain payable by the creditor according
to the third paragraph of Article 32 of the Law of 9th July 1991
above-mentioned.
4 An indication that the sums due must be paid, when, to whom
and by what method.
5 A copy of the third and fourth paragraphs of Article 32 of the
Law of 9th July 1991 above-mentioned.
5th Article - A receipt is given to the debtor for each
payment. The funds received by the person in charge of the collection
of debts must be paid out to the client within a month of the
clearance of the funds (unless agreed to the contrary).
6th Article - The person in charge of collection of debts
must inform the creditor of each payment, including part payment,
unless the payment is a result of a prior payment plan of which
the creditor is aware. Unless agreed to the contrary the person
in charge of collection of debts must inform the creditor of all
offers from the debtor attempting to discharge his liability by
any other means than full immediate payment of the amount claimed.
7th Article - Anyone carrying out the activity described
in Article 1 will be punished with the fine prescribed in the
5th class, if:
1 They have not confirmed with the obligations set out in Article
2;
2 They have omitted one of the stipulations set out in Article
4 in the letter sent to the debtor. For repeat offences the fine
prescribed in the 51st class will be applicable.
8th Article - The present decree will come into force
on the first day of the sixth month following its publication
in the Journal Officiel of the French Republic.
9th Article - le Garde des Sceaux, le Ministre de la Justice,
le Ministre de l'Economie et des Finances et le Ministre des petites
et moyennes entreprises, du commerce et de l'artisanat are jointly
in charge of the enforcement of the present decree ( each in their
own area of responsibility ) that will be published in the Journal
Officiel of the French Republic.
In Paris, 18th December 1996.
ALAIN JUPPE By the Premier Ministre : Le garde des sceaux, ministre
de la justice
JACQUES TOUBON Le ministre de l'economie et des finances
JEAN ARTUIS Le ministre des petites et moyennes entreprises, du
commerce et du l'artisanat,
JEAN-PIERRE RAFFARIN
Disclaimer : The above is the translation of a French Law which
is not intended to be used in an English Court and is provided solely
to give the reader a flavour of the Law applicable in France and
without any responsibility on the part of Concilium.
Law