Central Bank seeks debt collection service for levies

THE Central Bank of Ireland (CBI) has submitted a request for tender seeking the provision of specialist debt collection legal services regarding levies which it and associated third parties are owed.

The CBI submitted the request for tender earlier this month. Its aim is to enhance its debt collection success rate by introducing a time-bound escalation process to legally pursue, where instructed and appropriate, unpaid civil debts.

The current process the CBI operates for the collection of levies involves the issue of original invoices, together with the issue of up to two reminder letters.

Services listed in the tender by the CBI include issuing letters of demand to up to 1,000 regulated entities each year, initiating legal proceedings through relevant courts with a caseload expected to stabilise at up to 30 live cases in each year and enforcing judgments.

The tender lists different levies and fees, including industry funding levies, levies payable to the Credit Institutions Resolution Fund, levies payable to Additional Supervisory Levy, fees payable to Central Credit Registrar and transparency fees.

The CBI said: “As the current contract is due to expire, the Central Bank is now retendering for this contract and is seeking tenders from suitably qualified professionals for the provision of specialist debt collection legal services in respect of levies that remain due to the Central Bank and associated third parties.”

It added that it provides updates on the levies in its annual report, but cannot comment further on its engagement with regulated entities.

According to the CBI’s 2019 annual report, funding levy income was €160m.