The Financial Supervision Authority has issued a set of non-binding guidelines on how debt collection agencies and buyers of credit claims should interact with debtors.

According to data from Harju District Court, there were approximately 83,000 consumer credit debtors in Estonia in 2024.

Under the FSA's guidelines, debt recovery proceedings may not continue if the claim is time-barred and the debtor objects on those grounds.

"As a general rule, debt claims expire after three years. It should also be noted that, in most cases, the right to collect ancillary claims — such as penalties and interest — expires along with the principal claim," the guidelines specify.

Misleading information and threatening communication not allowed

The Financial Supervision Authority warns that debtors must not be misled about who is actually pursuing the claim. "It is prohibited to provide false or misleading information during debt collection," the guidelines stress.

For example, it is forbidden to design debt notification letters in a way that creates the impression of involvement by a government agency or bailiff if that is not the case.

In addition, credit administrators are required to maintain a professional and respectful tone in all communications.

"The manner of speaking must not come across as threatening or coercive to the debtor," the authority states in the guidelines.

The recommendation also advises limiting verbal contact to weekdays between 8 a.m. and 6 p.m., avoiding late evening calls, weekends or public holidays — unless the debtor has explicitly agreed to be contacted at those times.

Home visits frowned upon

According to the Financial Supervision Authority, home visits by debt collectors are not an appropriate method of debt recovery.

Direct contact — such as visiting someone's home — is considered overly intrusive and likely to create undue stress, the guidelines state, "which does not serve the interests of either party in resolving the issue." Indirect communication — via email or phone — should be preferred. A home visit is only permitted if the debtor has expressly requested it.

Agencies must not bring in third parties

Debt management activities must remain strictly between the debtor and the credit administrator.

"It is neither ethical nor acceptable to pressure a debtor into making payments by involving third parties — such as notifying their employer, a close relative or a government agency," the Financial Supervision Authority emphasizes. The involvement of third parties in debt management services must be both justified and lawful.

Full information and communication channels the client finds acceptable

Debt collection agencies must provide debtors with complete information about the nature of the claim — this includes a breakdown of interest, penalties and other associated costs. This information must be presented before any debt recovery action begins.

"Initial information must be provided before the first attempt to collect on a financial obligation," the document states.

It is also essential that clients are given the option to make contact both by email and by phone. Offering only a single communication channel is considered, under the guidelines, to place the debtor "in an unreasonably burdensome situation."

While the Financial Supervision Authority's guidelines are not legally binding, compliance is expected from all individuals and entities engaged in licensed debt management services. The guidelines took effect on July 1, 2025.

"It is the responsibility of the debt collection agency or debt purchaser to ensure that their employees who interact with debtors act in accordance with both internal regulations and the principles set forth in this advisory guideline," the document states.

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