News and Events

Interest on Trust Accounts

Section 20(3) has been amended to provide that interest on money deposited in the trust account of a debt collector must now be paid to the Council. Consequently section 20(2) has been amended and no longer provides that the interest on the trust account be paid over to the person on whose behalf the money is held. A new subsection 20(3A) has been inserted which provides that the Council may, in accordance with a tariff and procedure determined by the Council, reimburse a debt collector for any bank charges or portion thereof incurred by the debt collector in connection with the keeping of his or her trust account. Council has decided that any accumulated bank charges may be set off against the accrued interest against proof and that the balance be paid over to the Council. Since this provision is not retrospective it will only apply to interest accrued from 2 November 2007. Since this date may fall in the financial year special provision will have to be made in the transition period until accounting could take place for a full financial year in order to identify interest that has accrued from this date and against which bank costs can be set off. Debt collectors are requested to arrange with their accountants or auditors to reflect the relevant information in the newly prescribed Form 5 available on the website from 2 November 2007 until the end of the financial year.