Parliament plans to protect debtors from collectors

Рада планирует защитить должников от коллекторов

The Verkhovna Rada at a meeting on 12 December passed in the first reading the draft law on the protection of rights and interests of debtor in the implementation of the debt collection activities.

“The bill proposes to define the General legal and organizational principles of implementation of economic activity in the field of debt collection activities”, – stated in the message.

In particular, the document defines the notion of “collection activity”.

The project provided during the organization and implementation of collection activity to forbid to carry out actions that infringe on the rights, freedoms and property of individuals, and also endangering their life and health, honor, dignity and business reputation, to use force, violence, threats to carry out illegal or improper action and/or to use the insult to their personal dignity, against the debtor, his representative (s) and/or family members of the debtor-the physical person.

It is also envisaged to prohibit collectors to use vulgar or obscene language, use a rough tone of conversation, and perform other similar actions, violating public order and tranquility of citizens, against the debtor, his representative (s) and/or family members of the debtor-the physical person; to use means which are in the nature of intimidation; intentionally provide false information debtor about the overdue debt.

In addition, the collectors also want to ban to provide false information about their status, qualifications or professional authority; to Express in any way threats to the implementation of unlawful actions aimed to violate the right of property of the debtor; make an order for the settlement of arrears in the case that the execution of such instructions prevent the implementation of previously accepted the order; to enter debtor misled about the size, nature and reasons of arrears, etc.

In the course of organization and implementation of collection activity is proposed to prohibit any methods, forms and means of action, including the possibility of committing a of which is stipulated or not prohibited by law, if the debtor is a natural person informed the subject of collection activity about one of the documented circumstances.