The Estonian Financial Supervision Authority has issued an advisory guideline for credit servicers and credit purchasers on how they should deal with borrowers, aiming to create uniform debt collection practices in the financial market for consumer credit and other transactions. The guideline enters into force on 1 July 2025. The guideline prohibits the collection of time-barred debts, requires debt collectors to explain the components of the debt, and sets expectations on the timing and manner of communication between the parties. It is intended to harmonise currently varied market practices and to clarify legislative requirements, and it was circulated for consultation to market participants including all licensed credit servicers operating in Estonia at the time, FinanceEstonia, and the Ministry of Finance. Finantsinspektsioon described the guideline as a first step in regularising communication between consumers and credit servicers and plans to continue analysing the market and issue additional clarifications if needed.
Finantsinspektsioon 2025-06-25
Estonian Financial Supervision Authority issues guideline for credit servicers and purchasers on borrower communications and time barred debts
The Estonian Financial Supervision Authority issued an advisory guideline for credit servicers and purchasers to standardize debt collection practices, prohibiting the collection of time-barred debts and clarifying communication expectations. The guideline aims to harmonize market practices and clarify legislative requirements, with further analysis and potential clarifications planned.