History of Debt Collection Agencies: From Hammurabi to DFPI

1754 BCECode of Hammurabi — first codified debt rules

1977FDCPA — US consumer collection regulated

2022California SB 908 — first US B2B licensing

Ancient Origins: Debt Before Agencies

1754 BCEHammurabi CodeInterest capped at 33% grain / 20% silver

~450 BCERoman Twelve Tables30-day grace → physical enforcement

12th CLex mercatoriaItalian city-states — pan-European merchant law

1871P.G. Wallace & CoChicago — first dedicated commercial firm

1977FDCPAUS federal consumer collection statute

Three eras of commercial collection

1

Ancient to medieval: debt as infrastructure

Hammurabi 1754 BCE: 282 provisions on credit/enforcement. Roman actio certae creditae pecuniae → foundation of all EU payment orders. Medieval lex mercatoria (Florence/Venice/Genoa): pan-European B2B enforcement → direct ancestor of decreto ingiuntivo (unchanged in substance 700 years).

2

19th century to FDCPA 1977

P.G. Wallace & Co. Chicago 1871 — first dedicated collection house. BDIU Germany founded 1956. FDCPA 1977: US consumer-only statute. German RDG 2008 (§10 B2B licensing). France Décret 96-1112: mandatory mandate + professional insurance.

3

2000s–2022: digitisation and licensing expansion

Germany online-mahnantrag.de. Poland e-sąd EPU. EU: EOP Reg.1896/2006. UAE: cheque decriminalised + Art.62 payment order (2022). Spain Law 42/2015: 15yr → 5yr limitation. California SB 908 Jan 2022: first US B2B licensing (DFPI). Netherlands WKI Apr 2024.

A CFO reviewing a problem ledger rarely cares about ancient history. But the procedure you're about to invoke descends in an unbroken line from medieval Florence. The decreto ingiuntivo is 700 years old in substance. The Mahnverfahren follows Roman actio certae procedure.

Key Milestones in Collection Law

YearMilestoneSignificance

c.1754 BCE

Hammurabi Code

First codified debt, interest cap, enforcement rules for creditors

Foundation

~450 BCE

Roman Twelve Tables

Actio certae creditae pecuniae — ancestor of all EU payment orders

Roman law

12th C

Lex mercatoria

Italian city-states — direct ancestor of decreto ingiuntivo (Arts.633-656 CPC)

Medieval

1871

P.G. Wallace & Co.

Chicago — first dedicated professional commercial collection agency

Modern era

1977

FDCPA (USA)

Federal consumer collection regulation — B2C only — B2B commercial exempt

FDCPA

2008

RDG Germany

Rechtsdienstleistungsgesetz — modern B2B licensing §10 — replaces 1935 statute

RDG

2022

California SB 908

First US state to license commercial B2B collectors under DFPI — Jan 2022

SB 908

What is the history of debt collection agencies?

Debt collection traces to Hammurabi 1754 BCE and Roman law 450 BCE. Medieval lex mercatoria built pan-European enforcement (ancestor of decreto ingiuntivo). Modern agencies: P.G. Wallace & Co. Chicago 1871. FDCPA 1977 (US consumer only). German BDIU 1956 / RDG 2008. California SB 908 Jan 2022: first US B2B collection licensing.