GardaÍ in the midlands have given security advice to a businessman after he made a complaint that Martin 'The Viper' Foley – who runs a debt collection agency – called to his home seeking money in a manner that put the man "ill at ease".

The businessman owed a creditor a significant amount of money but was unable to pay it and received a visit from the notorious criminal. The man says he will get a restraining order if Foley approaches him again.

"He said, 'Do you know who I am?' I said I did and then he said, 'I want my money, it's my debt now'. His intimidation was in his name. I told him we didn't have it and then later called gardaí," the businessman told the Sunday Tribune.

Foley twice approached the man and members of his family last December demanding payment after he was hired to collect a debt. He would have taken 15% to 20% of what was owed as his fee if he'd successfully collected the money.

Foley's business is thriving but he is by no means the only convicted criminal branching out into debt collection. There is evidence that as the economic downturn continues, several criminal gangs have become involved in the industry.

As many small companies fold, there is an emerging trend of frustrated creditors hiring criminals when they are unable to collect money owed.

Often, the creditors maintain they cannot afford to wait for the outcome of civil proceedings as their own businesses are in jeopardy. This is most common in the construction and property sector, which has been badly hit by the recession.

In some instances, threats of physical violence and damage to personal property have been carried out by criminals acting as debt collectors. Eastern European gangs and Russian mafia are also suspected of getting involved in the business, particularly in the Dublin area.

"As the economy worsens and businesses get into financial difficulties, there are disturbing reports of threats, intimidation, destruction of property and even physical assaults on people owing substantial debts," said Fine Gael justice spokesman Charlie Flanagan.

Flanagan intends to raise this "disturbing problem" in the Dáil this week and call for immediate regulation and legislation to govern the debt collection sector.

Late last year, shots were fired over the house of a developer in Co Offaly who owed money to a business associate. A Galway builder also had a brick put through the windscreen of his car after refusing to cooperate with a debt collector.

Unlike most other European countries, Ireland has no regulation or specific legislation governing the debt collection sector, meaning anyone can set up a debt collection agency.

Foley's company – Viper Debt Recovery and Repossession Service Ltd – is registered with the Companies Office and is based at an address in Crumlin, Dublin.

"If you don't have the money, you don't have the money. There's no point sending The Viper to come and see me," the businessman who was visited by Foley said. "I'm very concerned for the safety of my family. You're waiting every night for the door to be kicked in. It's ridiculous that a well-known criminal is allowed operate as a legitimate businessman. He was very careful not to threaten me with violence but his presence was enough."

Gardaí offered security advice to the businessman after he complained about Foley's approaches.

"We took appropriate action. The man who made the complaint recognised this person from newspapers. There is no breach of criminal law alleged in the complaint; this individual did not threaten violence. But this person felt that the notoriety of the person attempting to collect the debt put him very ill-at-ease," said a garda source. Foley did not return phonecalls seeking comment about his debt collection business.