ABSTRACT
This chapter gives an overview of the Swedish regulation of informal debt collection practices. In this context, the term ‘informal debt collection practices’ means debt recovery practices where the state apparatus is not yet involved, but where the debt is recovered by either the creditor him- or herself or a third party, both as a service provider or a new creditor. Hence, informal debt collection has to be distinguished from “formal debt collection” where the state apparatus is involved, that is, either general courts (allmänna domstolar) or the Swedish Enforcement Authority (Kronofogdemyndigheten). Nevertheless, informal debt collection is considered a legal, pre-step of formal debt collection. Sweden represents one of the countries in the European Union where informal debt collection practices are highly regulated by law. This chapter aims to contribute to the question on how informal debt collection practices, in general, may be regulated and whether the Swedish model may serve as an inspiration for European regulation or regulation in other Member states. This chapter is structured in the following way: at first, the background and the scope of the applicable laws are described, including the supervisory authority and competent courts; secondly, the licensing system and requirements are laid out; thirdly and most importantly, this chapter deals with the material rules concerning informal debt collection practices in Sweden, including examples of banned practices; then, the validation of debts and the costs of debt collection are described; and finally, the enforcement mechanisms for good debt collection practices are explained. The chapter concludes with some observations and reflections on the Swedish regulatory model of informal debt collection practices.
