About this bill
Standing Committee on Justice to examine new debt collection law
The Ministry of Justice and Preparedness proposes a new debt collection law to replace the 1988 Act. The proposal is based on a 2020 working group report and implements EU directives. Committee members split into overlapping coalitions: a broader majority from the Labour Party, Progress Party, Conservative Party, Centre Party, and Christian Democratic Party stressed that the law must balance multiple concerns, while a narrower majority of Labour, Conservative, and Centre Party MPs backed the proposal as necessary modernisation. The Green Party and Christian Democratic Party put forward several amendments to strengthen debtor protections, including preventing debt problems, requiring human oversight of automated decisions, and banning "pay-back models".