Population: 58,103,033

Economy Overview:

Italy has a diversified industrial economy with roughly the same total and per capita output as France and the UK. This capitalistic economy remains divided into a developed industrial north, dominated by private companies, and a less developed, welfare-dependent agricultural south, with 20% unemployment. Most raw materials needed by industry and more than 75% of energy requirements are imported. Over the past decade, Italy has pursued a tight fiscal policy in order to meet the requirements of the Economic and Monetary Unions and has benefited from lower interest and inflation rates. The current government has enacted numerous short-term reforms aimed at improving competitiveness and long-term growth. Italy has moved slowly, however, on implementing needed structural reforms, such as lightening the high tax burden and overhauling Italy's rigid labor market and over-generous pension system, because of the current economic slowdown and opposition from labor unions. But the leadership faces a severe economic constraint: the budget has breached the 3% EU deficit ceiling.

General Business Practices

a). The main language used is Italian, this is used in all court proceedings.
b). The Italian Lira is used in most business transactions.
c). Need to supply all relevant invoices and documentation.

Collections.

A. Background of Industry.

1. It is difficult to assess the volume of collection activity in Italy at present as it is an activity not regulated, and there is illegal operators.
2. Debt collection is handled by the following :- - Illegal collectors who set up business as secondary work - Illegal agents, with no fixed office - Young inexperience lawyers - Well Qualified lawyers - Qualified Debt collectors
Both consumer and commercial debts are collected.

B. Licensing Requirements.

In Italy lawyers and collection agencies do not get along, as the credit agencies are viewed as "stealing" business away from lawyers. No license is required to operate as a collector in Italy, and that is why several illegal and heavy handed agencies exist.

C. General Procedures.

1. Upon receipt of the assignment collection agency will institute a recovery by telephoning the debtor, representing themselves in the name of the creditor and not the agency. If the debt is quite an old debt a visit is made to the last known address of the debtor to confirm the address. When the debtor avoids all telephone calls and visits, telegrams are sent clearly outlining what actions may be taken against the debtor if they fails to respond.
If the debtor is not at the address, the services of a skip tracer are engaged.

D. Charges & Remuneration.

1. Lawyers generally charge a base fees which is set by the professional category of lawyers, however some lawyers add a fee at their discretion.
2. Collection agencies in Italy usually operate on the basis of a commission charged on a successful recovery. The rates vary from agency to agency.
3. Legal costs for any court action instituted may be recovered from a debtor.
4. Interest may be added to an unpaid account, at present the annual legal rate that can be added to the debt is 10% per annum. Interest is also recoverable at the rate specified in the contract between the debtor and the creditor.

E. Accounting & Remitting.

1. There are no difficulties in transmitting funds in and out of Italy.
2. In the majority of cases the debtor pays either the solicitor or collection agency direct. Professional agencies do not bank money collected form a debtor into there bank account, they sign the cheque over to the creditor. An invoice for the agreed fees is t