The People in Need (Člověk v tísni) organization is conducting an information campaign in order to change the debt recovery system in the Czech Republic. Czech MPs currently face a fundamental decision on whether to reduce the fees attorneys can charge for collections services on small debts.
In order to inform the public about the issue, the group has launched a Facebook page and website, Rozhodněne.cz ("Definitelynot.cz"). The site features updated information about the effort in the lower house, analyses, links to media articles, and much more.
"It is absurd that the rules lobbied for by the Czech Bar Association will unnecessarily cost the citizens CZK 12 billion, to be pocketed by attorneys involved in recovering public debts. That amount of money is comparable to the cost of providing all of the aid to those in material distress, which in 2013 amounted to CZK 10.5 billion," said Jan Černý of People in Need.
The Czech Republic is the EU country where it is the easiest to turn a small debt (an unpaid fee for riding public transport without a ticket, returning a library book late, or failing to make a co-payment when visiting the doctor) into one that is worth several thousand Czech crowns, pushing the debtor into a difficult, often insoluble situation that leads to a collections proceedings. An amendment now before the legislature would change that: Instead of the existing fee of almost CZK 5 000, an attorney pursuing debts of up to CZK 10 000 would only be able to charge between CZK 600 and CZK 900, the sort of fee charged not only in the much wealthier country of Germany, but also in Poland.
Given that the attorney’s work in such cases primarily consists of tasking an assistant with taking a few minutes to complete a form for the court and a summons for the debtor, the lower remuneration is sufficient, according to international experience. The attorneys’ lobby stands to lose profits and is against the amendment.
A group of MPs from the Christian Democrats, the Civic Democrats, the Czech Social Democrats and TOP 09 all proposed the law. It is also backed by the Platform for Responsible Finance, which includes the Czech Banking Association, the Czech Government Agency for Social Inclusion, the Czech Leasing and Finance Association, the Office of Financial Arbitration, and People in Need.
Yesterday the MPs sent the bill for a second reading. A first, partial victory is behind them, but they anticipate a long road to approving it.
You can follow the issue at www.rozhodnene.cz and its affiliated Facebook page, https://www.facebook.com/ROZHODNENE.cz . "Join the discussion and share information with your friends, that can help," Jan Černý of People in Need says.
