Sustainable debt collection: towards a novel system of efficient and ethical consumer debt collection (SUSTDEBT).

Despite the wealth that a large proportion of our society is living in, many European households are unable to repay their debts. Their creditors might find themselves in an equally difficult position as they need payment to avoid getting into debt themselves. Debt collectors take full advantage of this and proceed to consumer debt collection at high costs. This leads to an accumulation of debt costs which in turn pushes the debtor into a negative spiral of escalating debts and ultimately into poverty. The urgent need to stop this negative spiral has been expressed by legal scholars and practitioners in many European jurisdictions. The current legislative approach is insufficient and fragmented. In times where debts are on the rise due to the pandemic, SUSTDEBT answers the compelling call for action. Sustainable debt collection pays attention to both efficiency and ethical concerns. SUSTDEBT takes a bifold approach to appropriately address the multiple challenges of consumer debt collection. First, starting from a fundamental rights analysis, combined with insights stemming from comparative law and an empirical study, SUSTDEBT will define and conceptualise efficient and ethical debt collection. Secondly, the project will put forward guidelines to shape a new sustainable debt collection process. Both outcomes will contribute significantly to the elaboration of an efficient and ethical debt collection approach in Belgium and the EU.

Keywords:VULNERABLE GROUPS

Disciplines:Comparative law, European law, Human rights law, Litigation, adjudication and dispute resolution, Procedural law

Project type:Collaboration project