Money Collections
Argentina
No legislation.
Australia
In all jurisdictions except the States of New South Wales and Victoria, it is prohibited to take a deposit or trade-in during the cooling-off period.
Austria
No legislation.
Belgium
In the case of sales away from the sales person’s place of business, it is prohibited to demand or accept, under whatever form or pretext, a deposit before the end of the cooling-off period. This clause is applicable even in cases of immediate delivery of the goods. Under the law on consumer credit, a deposit of 15% is compulsory for credit sales, in which case it must be specified that the deposit is made in accordance with the law on consumer credit.
Brazil
No information.
Canada
There are no regulations with respect to the collection of money and deposits except in British Columbia. Direct sellers are free to collect any payments or down payments. There is no limit to the amount of advanced payments. In British Columbia a direct sale is unenforceable if the direct seller requires a down payment that is more than $100 or 10% of the purchase price, whichever is less.
Chile
There is not a specific regulation applicable to money collection in connection with direct selling.
If a direct selling company is willing to judicially collect certain obligations, the applicable procedure shall depend on the origin of such obligations and the nature of the relevant titles held by company.
Columbia
Information on bad debtors can be obtained through a data base with some limitations protecting the privacy right. As a direct selling association, we have developed our own data base of direct selling bad debtors, which has been the first one in the industry.
Czech Republic
No specific regulation of money collection and leasing. There are some tax specifics for leasing only
European Union
Directive 2011/83/EU (Consumer Rights Directive) allows Member States in relation to off-premises contracts to maintain existing national legislation prohibiting the trader from collecting the payment from the consumer during the given period after the conclusion of the contract. (Article 9 (3) Directive 2011/83/EU)
Finland
There are no limitations.
France
Article L342-1 of the Monetary and Financial Code provides that “prohibited peddling and canvassing for the sale, purchase or exchange of gold bullion, bars, coins and foreign coins gold demonetized.
Engages in peddling these matters who goes to the home of individuals, other than the bankers, brokers and dealers in precious metals, or in public places not reserved for this purpose, to provide or obtain the materials listed designated above, with immediate delivery and payment, in whole or in part, either in cash or securities. ”
Guatemala
No legislation
Hungary
No legislation.
Indonesia
No legislation.
Ireland
There is no ban on the taking of a payment from a purchaser at the time of the order, i.e. before the goods are delivered. The consumer will be entitled to a refund in the following situations:
- The consumer exercises a legal right to cancel the agreement, e.g. under the credit law explained above.
- The consumer exercises a legal right to cancel under the law relating to distance sales or direct sales (off-premises) sales. For the latter, see “cooling-off period” (above).
- The seller fails to deliver the goods.
- The goods are not of satisfactory quality or do not correspond the description by which they were sold and the consumer chooses to reject them.
Italy
Direct selling companies and direct salespeople are free to collect any payments or down payments at any time. There is no limit established by law for the amount of down payments but they normally do not exceed 30% of the selling price.
Japan
As mentioned in the preceding section, the Hire Purchase Act regulates instalment sales where the goods are delivered to the consumer after all instalments have been paid over a period of time.
Companies wishing to engage in this type of transaction must obtain a licence from the Ministry of Economy, Trade and Industry. To be licensed, the company must have a certain amount of trading capital. The terms and conditions of the sales contract must also comply with the legal requirements. Licensed businesses must deposit with the bank half of the advance payment received from the purchaser.
Lithuania
During the sale upon the buyer’ s request a direct seller must issue the check/invoice that would prove the sale of goods.
Malaysia
No monies can be collected before the expiry of the cooling-off period as provided under Section 25(4) of the DSA 1993.
Section 25(4) states that:
‘No vendor or other person shall accept money or consideration from a purchaser under a contract made under this Act before the expiry of the cooling-off period.’
Mexico
Please see Credit Restrictions.
Netherlands
The pre-printed cancellation form (see item 2. above) states that the consumer is not obliged to pay any amount before the cooling-off period has expired. Deposits are not forbidden, however, but are refundable in case of cancellation.
New Zealand
Debt collection is based on the terms offered by the Direct Seller as a vendor and therefore once the defined period has expired for payment by the contractor, the outstanding amount may place with a debt collection agency for recovery.
As debt collection agencies normally charge a fee or percentage, this provision is normally added to standard terms of trade where credit is provided or where payment has defaulted.
Most Direct Sellers in New Zealand take payment by Credit Card or EFPOS (Electronic Funds Point of Sale – transfer) transactions negating any need for debt collection activity except in rare circumstances.
There are no laws covering debt collection other that those applied socially or generally however if the recovery involves product recovery then the Credit Repossession Act 1997 and the Personal Properties Securities Act 2001 must be complied with.
Norway
No regulations.
Philippines
No legislation.
Poland
No legislation.
Portugal
No special regulations exist, except of money or currency exchange.
Slovak Republic
No specific regulation.
Slovenia
Employment Act
No legislation
South Africa
According to the Credit Agreement Act, a sale repaid over a period of either three months or six months is regarded as a cash sale, when payment is made either by means of a credit card or by means of credit granted by the individual companies from the individual company. Some companies require an initial deposit to be made before granting credit.
Other companies offer a Lay-by system where a deposit is made, followed by monthly deposits and at the end of the lay-by period, either six months or twelve months, the goods are handed over to the purchaser.
These regulations are not specific to the direct selling but cover all aspects of consumer purchasing.
South Korea
There are no regulations with respect to the collection of money or method of payment. Direct sellers are not limited to collect any payment, cash or card.
Spain
There are no legal restrictions in connection with down payments, partial payments in advance, deposits, etc.
Sweden
This is covered by the Consumer Credit Act.
Thailand
Selling products to consumer who has decided to possess, prior to deliver the goods or services and process money collection, ensure the sales document shall contain following detail
- Detail of sales representative
- Time, place and method of payment
- Place and method of the delivery of goods or services
- Method of termination
- Method of goods return
- Warranty of goods
- Substitution of defected goods
Turkey
Direct sellers companies and direct salespeople are free to collect any payments or down payments.
United Kingdom
Direct selling companies and direct salespeople are free to collect any payments or down payments at any time.
United States
No information.
Uruguay
No legislation.