Borrowers who allow overdue loans may encounter representatives of collection agencies. These are those who knock out debts from malicious defaulters. A meeting with collectors means that the bank has terminated its obligations regarding the demand for loan debt and transferred the authority to another organization.
What are collection bureaus?
Those who repay loan debts are legal entities engaged in financial activities to secure loan repayments. Agencies work for hire: most often they are contacted by banks and other credit organizations whose customers owe debt to companies on loan agreements.
Collectors act on the basis of Federal Law dated 03.07.2016 N 230- "On the Protection of the Rights and Legal Interests of Individuals in the Activities of Returning Overdue Debts".
Despite the presence of prescriptions in the legislation of the Russian Federation, the activities of “debt collectors” often exceed the specified powers. On the Internet, complaints have repeatedly appeared about the actions of employees of collection agencies, which in a rude form force borrowers to pay off loans.
Citizens who know firsthand how collectors collect debts, after payment of obligations prefer not to burden themselves with loans and not act as guarantors for loans to relatives.
What is the activity of collectors?
According to the Federal Law No. 230- dated 07/03/2016, collectors carry out their activities to return loan obligations in accordance with the legislation of the Russian Federation. This means that any actions of employees of the bureau should not contradict the conditions of the law and violate the rights of citizens.
Collection agencies begin active only after the credit institution has transferred to them its authority under the loan agreement of the client. In 78% of cases, relations between banks, MFIs, and debt collectors arise on the basis of a loan purchase and sale agreement.
Transfer of a loan obligation is a transaction that is not refundable. Those who collect debts from customers receive full control over the debts of the payer, so collectors are so interested in an early return of funds.
For the borrower, selling his loan to an agency means that his payments will be monitored more closely. The operating principles of collectors are often based on psychological pressure on the debtor to repay the loan in any way.
What to do to the payers, whose loans the bank transferred to collection agencies?
Not wanting to communicate with those who collect debts, borrowers often go with a claim to a financial organization. But after the lender transfers his obligations, the banks are not interested in the client's contract. Their powers in the field of repayment of the loan were terminated, and the debt was purchased by a collection agency.
In this case, the client does not have any grounds for legal proceedings: relations between the bank and collectors are regulated by federal law. If the debtor for 3-6 months (or more) refused to make payments under the loan agreement, the creditor has the right to sell the obligations to "debt knockers".
This does not mean exemption of the payer from the need to pay on the loan. On the contrary, collectors specialize in how to get debt out of the debtor, and will take active steps to repay the loan as soon as possible with all interest and accrued penalties.
How should a borrower make payment when transferring rights to collection specialists?
When selling powers to collectors, the debtor's financial obligations are retained in full, but the procedure for making monthly payments may change.
If a client previously repaid a loan to a bank loan account, now he is obliged to pay funds to collectors. The exception is cases in which a credit institution cooperates with "debt bouncers" under a lease agreement. This means that the bank did not sell the loan, but hired a collection bureau to expedite the repayment process.
What does “loan assignment agreement” mean in relations between a bank and collectors?
Selling a loan to bouncers is carried out under an assignment agreement. A new recipient of funds in the person of collectors notifies the client about the transfer of his loan to a third-party organization. The letter on letterhead must necessarily indicate the reason why the borrower must pay the funds of another organization (assignment of rights), company details and total debt, taking into account all interest and penalties.
If the payer has not received a notification, collection specialists, in accordance with Article 385 of the Civil Code of the Russian Federation, are not entitled to submit financial claims.
The list of permitted actions of employees to repay loans
On January 1, 2017, amendments to the legislation regarding the powers of employees to collect debts entered into force. According to the new law, collectors have only a few legal ways to get a person out of debt. Allowed actions include:
- Calls at the time prescribed by law. Collectors can communicate with debtors through negotiations from 8:00 to 22:00 on weekdays and from 9:00 to 22:00 on weekends and holidays.
- Personal meetings. Only after prior agreement with the borrower.
- Letters to customers.
- Communication via email and social networks.
- Invitation to the office of the company.
- Representation of the employee. The collector must indicate the name, position and organization whose interests he represents.
Actions aimed at a personal meeting must be preliminarily agreed with the payer.
What is forbidden to apply to collection agencies in the process of debt repayment?
The new amendments to the federal law significantly reduced the powers of the "payers". Collector illegal actions now include:
- Attempts of psychological pressure on the debtor or members of his family. Employees are forbidden to threaten, rudely communicate with borrowers, to exaggerate the consequences of refusing to make payments.
- Calls at night - after 22:00.
- Refusal of presentation during contact with the client. Collectors, communicating with the debtor, are obliged to introduce themselves and clearly, in a polite manner, explain the requirements for returning the debt and the timing of payments.
- Intentional increase in debt. This amounts to fraud: the borrower must pay only the actual amount of the loan, taking into account interest and penalties.
- The persecution of relatives who are not directly related to the payment of a loan. Collectors can collect debts only from participants in a loan agreement, for example, guarantors, or those who have inherited obligations under the law. If the borrower has died and the insurance contract has not been drawn up for the loan, obligations to pay it will be transferred to relatives.
Those who collect debts cannot use physical force against the debtor. Any attempts at bodily contact are regarded as abuse of authority and are punishable according to the Criminal Code of the Russian Federation.
Collectors have exceeded their authority: where to go?
If the borrower is faced with unlawful actions of debt collectors, he has the right to defend his interests in court.
Violations of collection agency employees may be intangible, for example, causing moral harm to the payer and his family. Sometimes “bouncer” actions fall under the article hooliganism: damage to citizens ’property by writing“ Debt ”or putting up ads with photos of the borrower in the entrance.
To protect interests and maintain reputation, the payer can file a lawsuit against the organization, as well as come with a statement to the Federal Service for Supervision of Consumer Rights Protection and Human Welfare.
Can an individual seek help from collectors?
Prior to the adoption of amendments to the federal law, individuals often used the services of debt collectors. For example, collectors helped to remove debt without a receipt, even in the amount of up to 10,000 rubles. With the tightening of the list of permitted actions, the number of customers who seek professional bouncers for services has declined sharply.
Under the law, employees are not allowed to be intermediaries between individuals if the amount of the debt does not exceed 50,000 rubles. The condition is relevant for all categories of citizens, including single mothers, who before contacting the debt for alimony in court, appealed to other organizations.
If the amount of debt between individuals exceeds 50,000 rubles, the lender may attract collectors to recover their own funds. Moreover, the client does not have to have documents confirming the fact of the transfer of finances (receipt). Acting within the framework of the law, collectors will advise on how to collect cash from the debtor as soon as possible without a receipt.