Debt Collection

Debt collection on behalf of third parties (recouvrement de créances pour le compte d'autrui) is a regulated activity in France. If you want to recover debts professionally for other creditors, you must file a written declaration with the procureur de la République at the tribunal judiciaire in your jurisdiction before starting operations. There is no special register or formal authorization procedure.

The declaration must demonstrate that you meet conditions of good character (honorabilité) and professional competence. You must also hold professional liability insurance and maintain a dedicated bank account for client funds, separate from your own. Debt collection agents are bound by strict rules on contacting debtors, including prohibited hours and mandatory written notices before any action.

Requirements

  • Good standing (honorabilité): No prior convictions incompatible with the profession
  • Professional competence (capacité professionnelle): Demonstrate knowledge in legal matters, particularly commercial law and collection procedures
  • Insurance: Subscribe to professional liability insurance (assurance responsabilité civile professionnelle)
  • Financial guarantee (garantie financière): Provide financial guarantee to protect funds collected on behalf of clients

Procedure

  • Application submission (dépôt de demande): Submit authorization request to the public prosecutor of the judicial court in the jurisdiction of operation
  • Supporting documents (pièces justificatives): Provide complete file including criminal record extract, proof of professional competence, insurance and financial guarantee certificates
  • Review (instruction): The prosecutor verifies conditions and may request additional information
  • Registration (inscription): Upon approval, registration in the special register maintained by the commercial court registry

Restrictions and Obligations

  • Prohibitions (interdictions): Prohibited from using deceptive practices, harassing debtors, or exerting unlawful pressure
  • Professional obligations (obligations déontologiques): Compliance with professional ethics rules, particularly regarding confidentiality
  • Supervision (contrôle): The activity is subject to supervision by the public prosecutor and competent authorities
  • Ongoing compliance (renouvellement): Maintain conditions of practice throughout the activity