Market research
(Country Name)
“Think Twice, debt is a serious issue”
DEBTLESS
2011-1-CZ1-GRU06-07128 3
The Think Twice project is part-funded by the European Commission. This market research is the work of
Celeste Rufino and do not represent an official document nor the views of the European Commission nor of the
Executive Agency
2011-1-CZ1-GRU06-07128 3
Market research
Chapter 1 Population
 Numbers and development
Today in Italy live about 60,7 million people.
Italian population remained substantially unchanged from 1981 to 2001 (population
growth: zero) and then it started increasing during the first decade of the III Millennium,
mostly because of immigration, as Italy’s birth rate is one of the lowest in the world with
an average of 1,40 child per woman.
The Italian population is ageing as the life expectancy increase (79,1 years male, 84,3
years female). Aged people weigh on healthcare system, that is mainly public and which
costs are always rising, and that affects taxes, not to mention all the retirement checks
that have to be financed by a decreasing number of people who work and pay taxes (tax
evasion is widely practiced in Italy).
According to 2010 ISTAT surveys, people over 65 represent one fifth of the population,
and the largest. The largest segment of the population is the one between 40 and 45:
these are the people born during the “baby boom” in the 1960s, years of the Italian
“economic miracle”. Moreover, in the last few years more than 60.000 young people,
usually between 20 and 32 years old, abandoned Italy every year looking for better work
and life opportunities. That, too, is accelerating the population ageing process; only
immigration may reduce the Italian average age (immigrants have a lower average age,
32,5 years).
 Density
The Italian population density is 200,03 people/km2 , higher than the European average.
2011-1-CZ1-GRU06-07128 3
Most of the population (approximately the 67%) lives in the city. Here You can see the five
most populated cities in Italy:
1°
2°
3°
4°
5°
Roma (region Lazio)
Milano (region Lombardia)
Napoli (region Campania)
Torino (region Piemonte)
Palermo (region Sicilia)
Population 2.761.477
Population 1.324.110
Population 959.574
Population 907.563
Population 655.875
 Migration and ethnicity
According to the most recent ISTAT data (from 1st January 2011), in Italy there are about
4.570.317 immigrants, the 7,5% of the entire Italian population. But it has to be also
considered the presence on the territory of another 17,9% (around 650.000 people) of
illegal immigrants. That happens because the current Italian legislation is really strict
about the matter and it is really difficult for immigrants to fulfill the requirements to get
the residence permit: if they don’t they are sent back to their home country, that is the
reason why many of them have to enter Italy clandestinely.
2011-1-CZ1-GRU06-07128 3
Immigrants’ presence in Italy per Region (percent)
The 35% of immigrants lives in the North-West region, the 26,3% in the North-East, the
25,2% in the Center of Italy and the 13,5% resides in the South or in the islands.
Immigration is a recent phenomenon in Italy: it started in the 1970s and then became a
characteristic of Italian demography during the first year of the 21st Century.
Before the immigration happened, Italy was mainly an emigration country. It is estimated
that between 1876 and 1976 over 24 million people left the Country (highest peak in
1913) to live in South and North America, Canada, France, Switzerland, Belgium,
Germany.
In 1973 Italy saw for the first time a slight migration net, but it was principally due to
the return of Italian in their home country. In 1991 there were 625.000 immigrants
resident in the country. From 1993 foreigners became the only responsible for the Italian
population growth, as the Italian birth rate at its lowest peak and the emigration
(consequence also of the economic crisis) was still strong. From 2001 the Italian
population started growing again by 0,7% in a year.
By 2011, the greatest ethnic groups of immigrants in Italy are the following:
Romania
Albania
Morocco
China
Ukraine
968.576
482.627
452.424
209.934
200.730
Philippine
Moldavia
India
Poland
Tunisia
Italian municipality with the greatest immigrants presence:
Rome 294.571
Milan 217.324
Turin 127.717
2011-1-CZ1-GRU06-07128 3
134.154
130.984
121.036
109.018
106.291
Chapter 2 Initiatives and Sites with solutions
 National organizations
 Sites
 TV shows
Adiconsum is an association of consumers dealing with the problems of over-indebtedness and
usury through information, education and prevention activities aimed to provide informations for
a conscious and responsible use of money and for the possibilities of legal access to credit. It
directs to the adequate support structures for those at risk or worn ones.
It 'was born in 1987 from the idea of the CISL (an italian trade-union) and it has over 122,000
members.
It is developed throughout the country; operators provide assistance and protection to individual
and collective consumers and their families.
“Adiconsum” struggles for the defense of the consumer defending him from the harassments.
Adiconsum works closely with the Authority and the institutions that have consumer protection
as their mission. It 'also has a Law Center providing legal assistance to members. Through its
research department and projects, it conducts a number of initiatives at national and European
level, important information campaigns and studies.
At the national level is a member of the CNCU - National Council of Consumers and Users, at the
Ministry of Industry, is an ordinary member of IMQ - Italian Institute for the Quality Mark and
member of the Third Sector Forum.
At the international level it deals with the door of the European consumer (ECC-NET Italy),
cooperates with the various DGs of the European Union; it cooperates with information and
research projects with organizations within and outside Europe.
Since 1998 manages a Fund to prevent wear that provides legal access to credit by
families who are in difficult economic situations (indebtedness) and that aren’t able to cover
their monthly income all expenses necessary for the sustenance of the family (food, rent,
mortgage payments, utility bills, medical bills, etc..).
It aims to prevent the use of unofficial channels of credit. The Treasury has identified some
guidelines that should be followed to access the Fund and to obtain guarantees.
The Committee is a commission headed by a President and a number of experts with skills in
specific
subjects,
financial,
legal
and
social
issues.
Data Bank: "ABC Consumer" is a free online database, updated and user-friendly set up thanks to
the contribution of the Ministry of Labour, Health and Social Policies. It provides informations
like understanding the terms of the contract, use the appropriate means of payment and
security, access to justice to get the right compensation.
a. Initiatives:
- 2011. Edufin Project developed in partnership between the Consortium PattiChiari, ANCI
and 12 members of consumer associations to CNCU together for Financial Education
(Adiconsum, ADOC, Assoutenti, Active Citizenship, Codacons, Codes, Confconsumatori,
The House of the Consumer , Consumers League, Consumer Movement, Movement of
Citizen Defense, the National Consumers Union). Project "The pooling of financial
education": Adiconsum took care of design and implementation of the entire initiative,
which included numerous meetings on the territory aimed at the adult population.
Purpose of Meeting: financial education and to stimulate public awareness in relation to the
management of financial resources. It is based on the information content of multimedia tool,
"the
economic
footprint
Plus"
specially
created
for
the
project.
The project was realized in 17 regions and more than 50 municipalities
- The door Adiconsum family, offers a telephone advice and legal and also psychological
support to people and families who apply for access to the fund to prevent wear. It
2011-1-CZ1-GRU06-07128 3
-
-
provides help in economic and psychological problems (anxiety, feelings of depression,
couple conflict, isolation, uncertainty about the future, anger ...) linked to serious debt.
Access to the door is voluntary, free of charge, with any guidance and referral services at
ATM and public land, able to take charge and meet the demands of users.
"Line Third Age - Together against poverty": the indebtedness has caused serious
consequences of social marginality and the risk of falling victim to usury. The "Third Age
Line - Together against poverty", aims to prevent and improve situation of overindebtedness
It was promoted by Adiconsum and Defense of the Citizen Movement with
the financial support of the Ministry of Labour, Health and Welfare.
Two associations have implemented a series of activities designed to guide families and
seniors toward a proper and sustainable management of the family budget, through the
knowledge of the credit instruments, the informed use of consumer credit and the
development of 'analysis of their spending capacity and debt.
INFORMACON The project, funded with support from the Ministry of Economic
Development, in partnership with consumer groups: ADOC; Consumers Protection Center
Members; Cittadinanzattiva; Consumers League, aims to provide information, assistance
and advice to consumers and users
- a proposal against the high cost loans:
A solidarity fund fed by banks and consumers and the possibility of not seeing their homes go to
auction for those who are behind on mortgage payments.
For those families that fail to make payment of installments, the associations propose, propose
to convert the loan into a temporary rent so that they can continue to live in the apartment they
are buying the property is disposed of without by judicial auction.
2. Sites
www.adiconsum.it
prevenzioneusura@adiconsum.it
sportello.famiglia@adiconsum.it
www.mdc.it
3. TV Shows
- Adiconsum is also on page 423 of Teletext!
-TgAdiconsum
Other national Institutions:
-
AGISA onlus; sito: www.prevenzioneusura-AGISAonlus
-
Regional office policy against usury of the Lazio Region; sito:
www.antiusura@regionelazio.it
-
CODICI (rights of the citizen center);
-
Consulta nazionale antiusura; sito: www.consultaantiusura.it
-
Anlur; sito: www.antiusura.it
sito: www.CODICI.org
2011-1-CZ1-GRU06-07128 3
Chapter 3 Figures – Since the private debt issue in Italy is quite recent, there isn’t many
information about the subject. These are just some approximate data to understand the current
situation in the country.
 Debt forgiveness
Every Italian family is virtually indebted for about 20.000 euros. The situation is
particularly bad in Rome (27.727 euros average household debt) and Milan (27.241 euros):
the cities with the highest income average are the most indebted, mostly because of high
property prices, even though the Southern regions debts are recently registering the
highest debt increase in the country.
The 14,4 % of italian families (ISTAT) has at least once a year problems repaying
installments. Since the euro introduction the average debt ratio increased by 131%.
By 2010, of six million indebt households (about one in five) everyday a thousand stop
repaying rent, leasing, water, elecrticity, gas and tv fee. The families’ passives represent
the 58% of their disposable income.
 Late Payments per area
The average delay of payments in Italian business is 121 days; but the average late
payments is 79 days for private enterprises, while the Public Administration needs about
180 days to pay for services.
The 56% of enterprises interview by Intrum Justitia usually wait about 128 days before
address to a debt collection agency, which make the credit harder to collect and force to
ask other loans; all of that has trigged a ripple effect which is slowing down Italian
economy, as small and medium-sized enterprises represent the 94,8% of Italian
entrepreneurial and they’re the ones suffering the most.
 Late Payment origin Rent/Mortgage/Energy or Installment purchase
According to the last Bankitalia report, the 41% of debts are due to mortgage, the 20% to
personal loans, the 13,6% to consumption and the 21% to trade.
People get debt to maintain a certain lifestyle or simply to survive; in 2007, for example,
the 12,2% of Italian population has problem paying taxes.
In 2007, a Bankitalia report declared that the 5% of Italian households stopped repaying
mortgage; it concerned mostly unemployed (19%), single parents, temporary workers,
people with low-income, families with householder between 45 and 54 years hold and
just one income ( Italy female employment rate 47,2%).
By 2009 the gaps for non-payment of Enel (electricity) were on the rise by 30% than 2008
(from 46.000 to 600.000).
According to Eni (gas) the 8% of users pays the bills late, and 8 out of 10 house
administrators declares an average late payment of the rent from three to six months.
Chapter 4 Origin of debt
 Survival Liabilities The debtor has not enough income relative to its fixed costs.
According to the “Coldiretti-swg” survey, only the 49% of Italian population declares to
be able to cover their fixed costs, without any luxury and without saving any money.
Between 5% and 10% of the population can’t afford the minimum to live (increase of food
robbery by 7,8%).
The most exposed to this kind of debt are the people with low financial
2011-1-CZ1-GRU06-07128 3
possibilities, young people with no permanent job, aged people with a minimum
retirement check, families with only one parent working etc.
It is estimated that by march 2011 the loans disbursed to Italian were about 481.739
million of euros, an increase of 3,4% from the same period of 2010, with a particular
concentration in the most densely populated regions, Lazio and Lombardia.
 Amounts overspending The debtor has enough money in principle, but has too many
loans closed and is therefore in financial trouble.
These kind of debts are due to overspending, and it happens mostly because of
indifference, ignorance in financial matters, poor financial management and wrong
perception of money.
People usually close more than one loan at a time, as the installments amount gets
higher because of variable rate interests , the debt increases becoming harder to
extinguish, so the financial resources (that were enough in principle) become
inadequate.
Initially, people mostly indebted theirselves for the mortgage of the house, for the car’s
installments.
By 2008, over 330.000 families have an overall installment debt equivalent or higher than
the 30% of the total family income.
 Adjustment payable The debts are a result of significant changes to the expenditure and
income or lace.
Those kind of debts are a consequence of the sudden fail of one or more income in the
family group: the death of someone with a retirement check, the job loss of a middle
aged person, divorce (the most affected by separation are women, as they usually get
the children custody and often the other parent does not fulfill completely his financial
duties. In 2009 the 6,1% of Italian population older than 15 experienced a separation or a
divorce.) are the most common. But there are also cases of sons who suddenly have to
deal with parents’ diseases and medical expenses related or vice versa, for example.
 Compensation Liabilities Debts caused by psychological problems such as drug addiction
or buy. They are also a consequence of social insecurity.
This kind of debtor is, for example, the one that applies for funding to buy things that
will improve his image, even though they’re not necessary goods. Those people are
usually between 25 and 34 years old: young people seem to be unable to change their
lifestyle according to the current economy and to their real financial resources.
These loans amounts are usually less than 5.000 euro, and the purchase is almost
exclusively for personal use. Young people get debt to buy the last technological device
(tablets, PCs, smart phones etc.), but also to get plastic surgery or sometimes even to
have a luxurious wedding. We can say this kind of debt is strictly connected to the
achievement of a certain status-symbol or appearance.
For what concerns drug debts there aren’t many available data, as they are contracted in
an illegal context, but as the crisis get worse drug abuse increases, and so do related
debts. Gambling debts, similar to debts for drug, as they both share addiction and
economic effort, are quite common, too (slot machines, lotteries etc.), but this type of
debts represents the 3% of cases.
This kind of “smaller” loans aren’t usually provided by banks, but by financial companies,
moneylenders or directly by the stores (ex. revolving card) instead; they borrow money
fast, even to subjects with no financial guarantees, but they also expect high (variable)
interests in return.
2011-1-CZ1-GRU06-07128 3
Chapter 5 Legal regulations
 Where to go
 Who is responsible to execute
 Creditors
The debt collection
The "debt" is an activity designed to obtain payment of a debt (total or partial), when the
debtor refuses to honor him, and when he is in a situation of temporary difficulties in fulfilling
its obligations. In any case, before embarking on judicial (court case resulting burden of fees,
costs and time), in most cases, it is generally advisable to solve the problem as a "benevolent"
resulting in a partial fulfillment in a reasonable time. The activities of debt collection is divided
into 2 phases:
• Phase out of court (stragiudiziale)
• Judicial Phase
Debt Recovery - The Step-court recovery procedure "extrajudicial" avoids the cost and time
burden of legal action, but requires the cooperation of the debtor. In general, debt collection
company operating under a very specific pattern:
1, reminder letters: they intimate to the debtor to pay the sum due (indicating more interest
and capital charges) and inform him that the practice will be entrusted to an office in charge of
debt collection.
2. Reminder telephone: the telephone operator in charge shall carry out the practice telephone
reminders of payment (by fax and / or e-mail), trying to resolve any disputes.
3. Direct collection: debt collection agents, through contact "physical" with the debtor, while
they view the real situation (if it is a deliberate refusal to honor its commitments, or if, despite
being unable to discharge, the debtor is willing to collaborate), verify the feasibility of
recovering and trying to agree a repayment plan, including partial or in installments.
4. Formal notice: this is the first formal step groped for the claim: a final letter by registered A /
R, the debtor is ordered to pay the sum due within a specified period, after which can start legal
action with charge of all the extra costs.
In the event that the recovery on a "benevolent" will not lead to any result can be checked with
economic / property to evaluate the opportunity to initiate legal action.
Similarly, if they reach an agreement and the debtor is willing to pay - immediately or in
installments - the law firm or company will do the recovery necessary to protect the lender and
ensure compliance with agreements made (eg. In If additional time is granted, the agreement
with the debtor could be the provision of more benefits such as: debt, liens, mortgages, etc..),
even in this case, they can be checked with economic / property to verify the real economic
conditions of the debtor.
Debt collection - Judicial Phase
Going to court is the ultimate way to go when the phase out of court (which reduces time and
costs) does not produce any results; MAIN OBJECTIVE: to obtain a writ of execution, which is the
act or document under which they can start the execution on the debtor's assets (eg car, house,
money, goods of society, etc..).
Generally, the legal action is taken after verification of the success of coercive recovery of the
loan, ie only when, following the investigations / economic capital at the point emerges out of
court sufficient capital to cover the outstanding claim (the possession of goods seized) .
A lack of attachable assets, usually, makes it "inappropriate" to start the prosecution, because if
the creditor will fail to pay their legal fees. Only in the case of large amounts of credits could
still be useful to proceed with legal action for the sole purpose of deducting outstanding claims
Depending on circumstances, the creditor can act in different ways to assert their rights:
1. Action for injunction
2. Precept of Titles
3. Seizure of property
4. Attachment
2011-1-CZ1-GRU06-07128 3
5. Failure
1 - Application for injunction
If the creditor is in possession of documentary evidence attesting to his right, system provides a
summary procedure that allows to obtain, in a short time, a writ of execution. To initiate this
procedure is necessary that the credit is:-certain (existing or proven by documents such as
contracts, invoices, accompanying, authentic extract VAT registration etc..) Liquid (certain in
amount), payable (not subject to term or condition).
2 - Precept on securities
If the creditor is already in possession of executive titles (eg. Protested bills or checks) will act
immediately to proceed to enforcement in the debtor's assets and in other cases enforcement
may only be made enforceable by virtue of sentence or by other measures.
With the injunction orders the debtor the creditor to fulfill the obligation arising from the
enforcement order within a period of not less than 10 days. Failure to pay within the prescribed
time, the creditor has the right to ask the bailiff seizure of all the debtor's assets until full
satisfaction of his claim.
3 - Seizure of property
The attachment has the function to bind the property to be subject to the enforcement and
consists of an injunction to the debtor, the bailiff is to refrain from any act intended to steal the
credit guarantee property covered by the expropriation and the fruits of them .
4 - Attachment
The attachment is a precautionary measure intended to guarantee the loan, when there is a
danger or well-founded fear of losing the guarantee of the same (eg. When it is assumed that
the debtor can "hide" assets subject to seizure, taking advantage of delays of the ordinary
procedure).
Therefore, before they start legal action to recover debts they can legally bind the debtor's
assets seized and then convert, then (by obtaining the conviction executive), the attachment in
the attachment.
5 - Failure
In general, if the debtor is a trader and they are in default you can enable the bankruptcy
proceedings of bankruptcy.
This procedure is aimed at creating and coercively equally the rights of creditors through the
liquidation of the assets in the debtor's assets.
As for the two requirements, as an entrepreneur means that are excluded from bankruptcy
proceedings: small entrepreneurs, farmers, public bodies (for which there is compulsory
administrative liquidation), and large companies in crisis (for which there is the 'administration).
Finally, a state of insolvency means that the debtor is no longer able to meet its obligations, and
can be tested eg. through a series of protests repeated notes, a report of seizure with negative
results (eg. for lack of goods seized), etc.. The important thing is that the debtor fails to
demonstrate its ability to repay even through a repayment plan.
With the decision declaring the debtor bankrupt is deprived of his possessions (with certain
exceptions: character checks to food, property and rights, personal, etc.) that are submitted to
the administration of the bankruptcy trustee, who will record the inventory and shall their
liquidation.
2011-1-CZ1-GRU06-07128 3