- Legal protection
Collection activities are legalized in Russia. Therefore, debtors of banks and microfinance organizations may face the actions of debt collectors. It is possible and necessary to fight debt collectors, especially if they exceed their authority and commit illegal actions. We will talk about methods of protection against collectors in this article.
What rights do debt collectors have?
The main points related to collection activities are reflected in Federal Law No. 230-FZ.
Typically, collection agencies are engaged in collecting overdue debt on loans and microloans. The transfer of debt can be carried out under an assignment agreement, and the debtor’s consent is not required. In some cases, collectors may act under a power of attorney on behalf of the bank. These points must be checked, since in other cases collection organizations have no basis for making claims.
Here are the main rights vested in collectors under Law No. 230-FZ:
- interact with the debtor through written demands, calls, SMS, messages via social networks or email (for all types of requests the law sets limits on the number per day, week and month), time of calls and SMS;
- meet with the debtor in person (for this you also need to take into account the restrictions of the law);
- go to court to collect the debt (if the debt has officially been transferred to collectors);
- submit documents to the FSSP for enforcement.
Article 7. Conditions for the implementation of certain methods of interaction with the debtor
- At the initiative of the creditor or a person acting on his behalf and (or) in his interests, direct interaction with the debtor is not allowed:
- on weekdays from 22:00 to 8:00 and on weekends and non-working holidays from 20:00 to 9:00 local time at the place of residence or stay of the debtor, known to the creditor and (or) the person acting on his behalf and (or) in his interests;
- through telephone conversations:
- more than once a day;
more than twice a week;
- more than eight times a month.
through personal meetings more than once a week;
- At the beginning of each case of direct interaction on the initiative of the creditor or a person acting on his behalf and (or) in his interests, the debtor must be informed:
Federal Law “On the protection of the rights and legitimate interests of individuals when carrying out activities to repay overdue debts and on amendments to the Federal Law “On microfinance activities and microfinance organizations” dated 07/03/2016 N 230-FZ
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Note!
The defaulter has the right to refuse to interact with debt collectors. To do this, you must send a written notification to the organization's address. If you do not have information about a collection agency, a representative of the collection agency must explain it to you upon your first contact.
The debtor’s refusal to cooperate does not deprive collectors of the right to go to court and the FSSP.
The collector is the debt collector, and therefore is obliged to confirm the grounds for its transfer from the original creditor. To do this, the debtor must be informed of the date and number of the agreement with the bank or microfinance organization, and provide a calculation of the amount of debt.
Regulation of collection activities - Federal Law No. 230
The Central Bank prohibits credit institutions from holding on their balance sheet an amount exceeding the limit of loans from third-party lenders. Banks borrow funds at a small interest rate and resell them to the end consumer (borrowers). Any unpaid debt under a loan agreement reduces the amount that the bank can re-borrow. It turns out that contracts need to be written off in order to get new money and sell to clients.
You can write it off in two ways:
- Take the debtor to court and transfer the case to the bailiffs. The proceeds from the sale of the seized property will go to the balance sheet of the bank, which will put it back into circulation.
- Sell the debt to collectors, thereby getting rid of the contract. Debts are sold in portfolios for a small percentage, freeing up space for new loans.
It turns out that collectors are an integral part of the economy. Without them, lending becomes impossible in principle. Do the contracts have to go somewhere? Litigation over state fees is unprofitable and leads to large expenses. There are many debts not exceeding 500-1000 rubles, and the duty makes litigation pointless.
What actions of collectors are unacceptable?
A debt collector is not a bailiff. Therefore, collection agencies cannot engage in enforcement actions, seize or seize property, or impose prohibitions and restrictions. Also, illegal actions of debt collectors include:
- violation of the number, frequency and time of calls, sending letters and SMS;
- any appeals with demands and threats against relatives, close persons or colleagues of the debtor;
- attempts to interact with the debtor if he submitted a written refusal;
- committing illegal actions falling under the Criminal Code of the Russian Federation - unauthorized seizure of property or money, uttering threats, using violence, damaging or destroying things, vehicles and real estate.
General control over collection activities is carried out by the FSSP. Therefore, the bailiffs can and should file a complaint if the collector goes beyond his powers and harasses with calls and letters, despite the refusal to cooperate. If you receive threats, or the collector uses physical force or tries to take away (destroy) property, you need to contact the police.
Psychological impact
Even without physical violence, the debt collector can exert psychological pressure on the debtor himself, his family members and other relatives. These actions may occur:
- in rude conversations on the phone, insults;
- in calls at night or early in the morning, on weekends;
- putting pressure on family members and relatives, including minor children;
- in hidden or indirect threats that are difficult to bring under the article of the Criminal Code of the Russian Federation.
Pressure may consist of leaving inscriptions in the entrance or on the walls of the house demanding repayment of the debt, in an attempt to tell the debtor’s employer or colleagues about financial problems. Even if such actions do not lead to harm to health, the debtor’s normal life will be impossible.
Case resolution practice
Appeal is still the most effective means of influencing not only collectors who violate the law, but also regulatory authorities, especially the FSSP, who do not bother their employees with active work and prefer conservative methods.
There are no special statistics regarding the number of complaints considered against the actions of debt collectors and the prosecutorial response measures taken in the public domain. The number of complaints is indirectly confirmed by the statistics of NAPKA, which received about 30,000 complaints in 2021, and the statistics of the FSSP, the number of complaints to which increased by 1/3.
The situation with the legality of the activities of collection agencies has stabilized. During 2017–2021, there were no reports of gross violations related to crimes committed by debt collectors.
Articles:
How to write a complaint to the FSSP against debt collectors
What time do debt collectors have the right to call?
Ways to deal with collectors
Now we will tell you directly about the methods of protection if you are presented with a collection debt. Unfortunately, even a written refusal to interact with debt collectors does not guarantee that they will not continue to ruin the debtor’s life. Therefore, it is not worth waiting patiently until they leave you alone.
Legal protection
As soon as you are faced with claims from creditors or collectors, it is advisable to contact a lawyer. This is not only necessary for immediate protection of rights. The lawyer will explain what options of action can be used in different situations, where to go with complaints and statements. The legislation allows the following methods of legal protection:
- defending interests in the courts - you can get a deferment or installment plan for payments, reduce the amount of the penalty, apply the statute of limitations to the entire debt or for certain periods;
- if you have nothing to pay off your debts, apply for bankruptcy; now this can be done for any amount of debt, but it is advisable to start the procedure with a debt of at least 350 thousand rubles. (because bankruptcy costs are quite high). However, according to the new law, it will be possible to become bankrupt for free, and the debt can be only 50 thousand rubles;
- contacting NAPCA or the prosecutor's office if the collection organization carries out illegal activities.
For example, bankruptcy will stop accruing penalties on the debt, and the procedure will be monitored by the arbitration court and the manager. This eliminates problems if threats are made over the phone, on social networks or in person. In these cases, you need to contact law enforcement agencies.
Protection through law enforcement agencies
The actions of debt collectors may fall under an administrative offense or a criminal offense. Here are several cases when the police are obliged to conduct a pre-investigation check and initiate a criminal case:
- intentional destruction, damage or theft of the debtor's property;
- threats expressed in any way, if they are perceived by debtors as a real danger;
- causing harm to the life and health of the debtor, members of his family or other persons (if significant harm to health is not caused, the collector will be held administratively liable);
- dissemination of defamatory information (through the media, on the Internet, in personal communication with strangers).
All these facts must be stated in a written statement. The police are required to conduct an investigation within three days. If the facts are confirmed, a criminal case will be initiated. The debtor will be recognized as a victim, and the violator will be prosecuted.
Where to contact
In the Civil and Criminal Procedure Codes that regulate the actions of persons and bodies involved in law enforcement activities, there is the concept of territoriality. It is guided not only by the courts, but also by all government bodies. A complaint against debt collectors should be made to the authority in whose territory the violation was committed.
In relation to a complaint against the actions of debt collectors, it is written to the district prosecutor's office at the place of registration of the debtor. Military or industrial prosecutor's offices may be located on the territory of the administrative district. They perform specific functions and should not be complained about.
The prosecutor's offices have reception areas that accept applications from citizens. You can make an appointment with the prosecutor or assistant and personally state the essence of the claims. However, a personal reception does not exempt you from filing a written complaint through the reception desk and registering it in the incoming correspondence log.
The most common is to send a complaint by registered mail. Do not forget to issue a receipt receipt - it will serve as a guarantee that your complaint has been received by the addressee. From this day the period for response and action will begin.
How to talk to a debt collector correctly?
A conversation with a debt collector can ruin your mood, lead to stress or more serious consequences. If you receive a call after submitting a refusal to engage, file a complaint with NAPCA. If a refusal is not stated, we recommend that you adhere to the following rules when talking:
- always ask the collector to introduce himself, name his organization, its basic data;
- at the slightest manifestation of threats or insults, try to record the conversation, but do not get into an altercation;
- even if you really owe money, try not to directly admit this fact in conversation or in writing (such points can be used to restore the statute of limitations in court);
- You can stop the conversation at any time, since they cannot force you to communicate with the collector.
Calls or personal conversations with any persons other than the debtor himself are unacceptable. If you have given your consent to the collector for a personal meeting, it is advisable to conduct the conversation in front of witnesses and record the conversation. This will reduce the risk of physical violence and will provide evidence in case of misconduct.
We do not recommend agreeing to personal meetings with debt collectors or engaging in lengthy telephone conversations. It is much easier to file for bankruptcy or pursue other protection options than to be constantly stressed.
Legal support
It is much easier to deal with debt collectors if you are supported by professional lawyers. They will protect you in every legal way. At the same time, specialists will not allow the collector to intimidate the borrower.
In addition to dealing with calls from debt collectors, a professional lawyer will help you sort out the situation regarding your debt: he will study the case, determine its strengths and weaknesses, and recommend the most profitable solution.
It is not difficult to protect yourself from annoying debt collectors, but sooner or later you will have to resolve the debt situation.
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Help through court
If collectors present a debt that has already been outstanding in court, you can apply for a deferment or installment plan. To do this, you need to confirm that the reasons for the request are valid. For example, you can submit documents about dismissal or reduction, a certificate of salary reduction, and confirm the assignment of a disability group.
Since collectors cannot forcibly withhold money from salaries or bank accounts, a determination on deferment or installment plan must be submitted to the FSSP.
Filing for bankruptcy may be the best option, especially if you do not have property to sell. After completion of the procedure, most debts will be written off, which makes any subsequent actions of the collectors illegal. The disadvantage of bankruptcy is the additional costs of paying remuneration to the manager and the risk of losing property.
What to do if you didn't take out a loan?
You may face claims from collectors, even if you have already repaid the debt, or have never been late at all. This may be due to the following reasons:
- if errors were made when drawing up the assignment agreement or executive documents (for example, if information about the namesake was incorrectly indicated in the writ of execution);
- if the bank sold the repaid debt to collectors;
- if the collection organization initially collects a non-existent debt.
If you are not a debtor, any actions taken by debt collectors against you are a violation of the law. Immediately contact the police or the FSSP and describe in detail all illegal actions. If a mistake was made by banks or courts, it is necessary to submit a request to eliminate it. Our lawyers will provide you with the necessary assistance in these matters.
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Author:
Vladislav Kvitchenko
CEO . Practicing lawyer in the field of bankruptcy of individuals. persons Since 2015, she has been successfully handling insolvency cases. Vladislav is brilliantly versed in bankruptcy law, gives expert comments on legal situations and actively publishes in specialized publications.
