Imprisonment of people with civil debts costs the State money, appears to benefit no one and should be done away with, according to a report to be published tomorrow.
The study by the Free Legal Advice Centres describes imprisonment for non-payment of civil debt as "an anachronism" that should be replaced by a civil enforcement remedy.
The report's "overwhelming conclusion is that a root-and-branch review of how the legal system deals with cases of uncontested consumer debt and unpaid fines is urgently required".
It calls for the immediate establishment of a review group to examine reform of these procedures and make specific recommendations on legal changes. The report by Mr Paul Joyce will be launched tomorrow by the director of Consumer Affairs, Ms Carmel Foley.
It notes a "well-documented stigma" attached to over indebtedness and, particularly, to appearing in public in relation to an uncontested debt case, especially in a District Court.
The creation of an alternative forum to the courts for dealing with debt enforcement, to minimise the embarrassment to the debtor and encourage participation in the process should be seriously examined, the report says.
It says there is a strong case for a tribunal with statutory powers to deal with debt-enforcement cases.
The report also recommends allowing debtors pay fines, such as for non-payment of motor tax or television licences, by affordable instalments before considering imprisonment. Committal for non-payment of fines should be abolished in the case of employed persons and social welfare recipients, and replaced with "attachment", where money is deducted at source from a person's income.
The report concludes that, "imprisonment for non-payment of civil debt is an anachronism and should be replaced by a civil-enforcement remedy as soon as possible". Imprisonment of civil debtors "costs the State money. . . and appears to benefit no one. It should be eradicated. In the interim, attendance at any committal hearing should be compulsory. . . so that the true reason for non-payment can be ascertained before any committal is ordered."
With major growth in consumer credit in recent years and increasing evidence of clients presenting to the State's Money Advice and Budgeting Service with high debt levels, the report says it is "imperative" that Ireland puts legislation in place to deal with chronic over-indebtedness.
It says many creditors instruct a debt collector to attempt to recover a debt and there is "anecdotal evidence that tactics employed by some debt collectors are dubious, in terms of the pressure that is put on the debtor to agree unaffordable instalments and the representations that are sometimes insinuated if not directly stated that the debt collector acts in some official capacity".