What rights do collection agencies have? What to do if debt collectors come home

Many debtors who find themselves in difficult financial situations have had to deal with collection agencies. Some employees of such organizations threaten borrowers or their relatives and may cause damage to property. It's no wonder people wonder what rights collection agencies have.

Features of collectors

Collection agency is a legal or financial company that has the right to collect debts. An organization can provide services in two ways:

collect debts on behalf of the creditor for an agreed fee;
buy the loan from the creditor (assignment or resale of debt) and act on your own behalf.

Currently there is no law that would regulate the work of collection agencies. But these organizations must act within the framework of the legislation of the Russian Federation. Their actions must not violate the rights of the debtor.

What rights do debt collectors have to collect debts?

Collection agencies are required to work without breaking the law. The main task of the employees of such an organization is to collect loans from debtors, but they can only do this through persuasion, regardless of the form of service provision. If there has been an assignment of the loan, the rights of the creditors fully correspond to the rights of the bank. Collectors have the following rights:

The rights of collectors do not extend to the seizure or seizure of property. They can only convince the debtor to repay the debt, but not take him by force or intimidate him. When contacting the debtor in any form (personal meeting, telephone call or letter), collectors are required to present their documents, as well as an agreement with the bank, which gives them the right to demand repayment of the loan.

If the collection agency fails to convince the borrower, he can go to court, but only if the loan has been assigned. Otherwise, the bank can do this.

What's prohibited

Collectors often exceed their authority. They perform actions that are prohibited for them. Claimants do not have the right:

Contact the debtor at unauthorized times (from 10 p.m. to 8 a.m. on weekdays and from 8 p.m. to 9 a.m. on holidays and weekends). Any contact is prohibited: personal meetings, telephone calls, and so on.
Visit the borrower or write letters to him at an address where he is not registered. Contact with the borrower can only be made through the contact information specified in the loan agreement.
Enter the debtor's home without his consent.
Describe and evaluate property.
Threaten the person from whom the debt is being collected (threat to life or threat of damage to property).
Make a demand to repay the debt to relatives who do not act as guarantors or guarantors.
Threaten family and friends.
Damage personal or public property (paint doors, break windows, etc.).
Hide their personal information, as well as the name and address of the company they work for.
Charge penalties or fines for late payment of debt.
Demand that the loan be repaid before the expiration of the period specified in the loan agreement.
Seize, seize or sell the borrower's property. Collectors do not have the rights of bailiffs.

What to do if debt collectors violate rights

If debt collectors violate your rights, you can contact the police, court or prosecutor's office. You can write a statement to the police in the following situations:

debt collectors have broken into your home;
threaten you or your family;
damaged or took away property;
the power or water was turned off;
they call at night;
disturb you at an address where you are not registered, and so on.

It is advisable to record meetings with debt collectors with a voice recorder or video camera so that you can present evidence. Always ask for documents from people who come to you. Remember that debt collectors do not have the right to force debt out of you, so contact law enforcement agencies for your protection, the protection of your family and property.

Despite the fact that the concept of “collector” is firmly entrenched in the system of legal relations related to debt collection, the current Russian legislation does not regulate collection activities in any way. Currently, the Law on Collection Activities exists only in the form of a draft, with an unclear prospect of consideration and adoption.

Examining the rights, obligations and activities of collectors and collection agencies, today we can only talk about those provisions of the law that are applicable to the relationship between the creditor and the debtor regarding the latter’s failure to fulfill its loan obligations. Yes, exactly like that, and only like that. The legislation does not provide for any participation of collectors in such relationships. But this does not mean that absolutely all collectors work illegally. It’s just that their de jure status is completely different, although many debtors don’t even know about it.

Collectors - who are they?

The legal status of a collector (agency) is determined by three factors:

The organizational and legal form chosen during registration is an entrepreneur (IP) or a legal entity.
Special status - a financial organization (credit or non-credit), controlled by the Central Bank, or another, often a legal company. It is extremely rare, but sometimes lawyers take on collection functions.
The powers that the collector has in the system of legal relations between the creditor and the debtor in accordance with the provisions of civil law.

The third factor is of greatest interest - it plays a major role in determining the rights of collectors:

The collector acts within the framework of an agency agreement concluded with the creditor and a power of attorney, which must contain a list of rights and obligations.
The collector entered into an agreement with the creditor on the assignment of rights of claim (in common parlance - the sale of debt). In this case, the collector’s status is virtually no different from a bank, microfinance organization or other primary creditor.

Rights of a debt collector acting as an agent

Acting as an agent, the debt collector is nothing more than an intermediary whose entire role is to provide debt collection services to the creditor. If we turn to the provisions of the Law on Consumer Credit (Loan), then all the rights of the collector in relation to the borrower can be reduced to a short but succinct definition - he can only politely and politely ask to repay the debt.

The mentioned law reduces the permissible actions of a collector to two directions:

Direct interaction - telephone conversations and (or) personal meetings.
Sending postal letters, telegraphic, text, voice and other messages transmitted via network telecommunications, including mobile radiotelephone.

It is important to note that all of the above actions can only be performed in relation to the borrower or the person who provided the security - the guarantor, guarantor, etc. Any other actions are illegal unless the borrower or the person providing the security has expressed their written consent to them.

Due to recent changes to the Law, collectors are expressly prohibited from:

Require fulfillment of obligations earlier than the period established by the loan agreement or law.
Call, conduct personal meetings, send SMS in the period from 22 to 08 o'clock on weekdays and from 20 to 09 o'clock on non-working holidays and weekends.
Perform any action with the intent to cause any harm.
Abuse the right in any form.

Rights of a collector under an agreement for the assignment of the right to claim a debt

By concluding a debt assignment agreement, the debt collector receives all rights regarding debt collection that previously belonged to the creditor. This means that the collector actually becomes a creditor in relation to a specific borrower.

With regard to the rights of the creditor and the person repaying the debt on behalf of the latter, the Consumer Credit Law does not make any special distinctions. Thus, the rights and obligations of a debt collector and a debt collector acting as an agent when interacting with a borrower regarding debt collection are identical.

At the same time, having the status of a creditor, the collector receives a number of rights that are unique to the creditor and directly follow from the provisions of the loan agreement and legislation. In particular, the creditor, acting on his own behalf, has the right to file a claim in court. As an agent, the debt collector can only provide legal services to the creditor. This is the approach often taken by debt collectors who are law firms and attorneys when acting as representatives of the creditor.

What Every Borrower Should Know

Whatever the status of the collector, he is not vested with the powers of law enforcement agencies and debt enforcement agencies (bailiffs).

The actions of a collector will be illegal in any case if he:

Trying to get into the apartment without your consent. You generally have the right not to open the door to collectors.
Takes actions to retain your property without a court order, or to draw up an inventory of property for the purpose of seizure. The latter is often used more as a threat: “we will come, we will describe and sell all your property for debts.” Such a threat can be regarded as extortion, and actions to illegally retain property can be regarded as arbitrariness.
Cause damage to your property, the property of third parties or public property, for example, damaging your doors, locks, painting the walls in the entrance, not to mention the deliberate destruction of property.
Threaten, insult, humiliate.
Violate the confidentiality of legally protected data by any means and forms, in particular, disseminate personal information.

The legislation reserves the borrower the right to appeal and challenge any actions that he considers illegal and (or) unfounded. If the collector belongs to financial credit or non-credit organizations, applications (complaints) can be sent to the local office of the Central Bank of the Russian Federation. This does not limit the right to judicial protection. You can also report illegal actions of debt collectors to the police, investigative authorities or the prosecutor's office.

New law on collectors regulates the activities of collection agencies and collectors. The law provides more for restrictions on the activities of collection agencies than for the possibilities and rights of collectors.

The law provides that collectors can interact with the debtor using:

personal meetings, telephone conversations (direct interaction);
telegraph messages, text, voice and other messages transmitted over telecommunication networks, including mobile radiotelephone communications;
postal items at the place of residence or place of stay of the debtor.

This is how debt collectors should interact with debtors. Collectors cannot do anything else with the debtor.

You can complain about the actions of debt collectors to the competent authorities.

Do debt collectors have the right to call the debtor?

Yes, debt collectors have the right to call the debtor. But the law provides for restrictions.

Regarding interaction with the debtor by telephone, the law states the following:

At the initiative of the creditor or a person acting on his behalf and (or) in his interests, not allowed direct interaction with the debtor through telephone conversations:

more than once a day;

more than twice a week;

more than eight times a month.

Do debt collectors have the right to call relatives or work?

Collectors have the right to call relatives or work only if such interaction is provided for by an agreement between the creditor and the debtor and if third parties do not mind the collectors calling them.

The debtor's consent to interact with third parties must be formalized in writing in a separate document.

Such consent can be withdrawn at any time.Accordingly, third parties may also refuse to interact with debt collectors.

Thus, calls from collectors to relatives, family members, work, etc. can be excluded.

Do debt collectors have the right to come home or come to work?

In this regard, the law states as follows:

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:

1) 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;

2) through personal meetings more than once a week;

Thus, the number of interactions between collectors and the debtor is limited.

Do debt collectors have the right to describe property?

No, the collector does not have the right to describe the property. Moreover, he should not even touch the debtor or his property. Only bailiffs can describe property as part of enforcement proceedings. Enforcement proceedings are initiated after the court decision on collection comes into force.

Do debt collectors have the right to go to court?

No, collectors do not have the right to go to court as part of their activities as collectors in accordance with the law on collection activities.

There is no need to confuse representation by power of attorney or representation by a lawyer. In this case, the representative’s powers may allow him to go to court. But the representative will not be a collector. In this case, the representative will act on behalf of the creditor (bank).

On the other hand, if the collector acquired debt on the basis of the assignment agreement, then he will be a new creditor. And as a new creditor, he will be able to go to court with a claim for collection.

In any case, no matter who goes to court, it will be a claim for debt collection. When the court decision is made and comes into force, the creditor (new creditor) will be able to obtain a writ of execution and submit it to the bailiff service. Accordingly, enforcement proceedings will be initiated. But that will be a completely different story.

Do debt collectors have the right to demand money (debt)?

Let's return to the concept collection activities. A collector is a person engaged in the collection of overdue debts, who acts on behalf and in the interests of the creditor. Accordingly, the creditor hired the collector, entered into an agreement with him and pays for his services. The collector acts within the framework of the agreement with the creditor. In this case, the collector acts on behalf of the creditor.

The collector cannot demand money that the debtor does not owe to the creditor. Let's put it this way: the collector cannot say: “pay, otherwise I will charge interest” or “pay me and I will leave you alone.” Those. a collector cannot engage in banal extortion for his own selfish interests. The debtor does not have to pay for the services of the collector. Illegal actions may constitute independent signs of a criminal offense.

You can also find out how to get rid of debt collectors legally and forever.

I hope the article was useful to you!

The occurrence of debt under a loan agreement occurs quite often. Previously, this problem was resolved by the claims department of the bank itself, but over time the number of debtors increased significantly, and banks were forced to resort to the help of specialized agencies or the help of collectors.

Today we will talk about what changes have occurred in recent years in connection with the activities of such companies and what collectors can do with the debtor in 2019.

Features and legislative issues relating to the activities of collectors in the Russian Federation

Collectors have long become famous for their negative actions and illegal actions. Of course, first of all, their activities are aimed at exerting a psychological influence on a person, however, such an influence may be enough for the debtor’s well-being to deteriorate and health problems to arise.

Until recently, there was no law regulating the activities of debt collectors, and few Russians knew what rights and powers employees of such agencies had. As a result, situations often arose when collectors moved from threats over the phone to real influence and thereby caused harm to the health of the debtor and his relatives.

Of course, law enforcement agencies dealt with especially egregious cases and qualified their activities as a criminal offense. At the same time, many citizens simply could not contact the police because they were very intimidated and feared for the life and health of their loved ones. Fortunately, government agencies promptly drew attention to this problem and a new law was adopted that made it possible to limit the powers of collectors.

What information is contained in the new law?

The new bill is called “On the protection of the rights and legitimate interests of individuals when carrying out debt collection activities.” The document made it possible to significantly narrow the possibilities of collectors, namely:

employees of debt collection agencies are strictly prohibited from carrying out any physical actions of a violent nature towards the debtor or members of his family;
financial organizations do not have the right to influence a citizen psychologically and cause harm to the debtor’s property;
As for telephone calls, this method is allowed to be used no more than twice a week. However, this cannot be done: on weekdays from 22 to 8, and on weekends - from 20 to 9;
the collector can visit the debtor at the address specified in the loan agreement, but not more than once a week;
all phone numbers from which collectors call must be officially open. The same rule applies to email addresses.

An important addition is that a citizen can now completely refuse to communicate with such an organization. To do this, it will be enough to transfer a notarized document to the agency’s address. It is better if it is a registered letter with notification of receipt.

What other prohibitions have been introduced for collectors?

According to the new law, there are no actions in relation to persons with disabilities of the first group, minors undergoing rehabilitation or unable to work due to health problems.

An important decision for many debtors was the imposition of a ban on notification of debt to third parties. For example, we are talking about illegal actions of collectors on social networks, as well as regarding the posting of leaflets and posters near the borrower’s place of residence.

What to do if collectors do not comply with the provisions of the new law?

In order to avoid getting into an unpleasant situation and not encountering the activities of debt collectors, it is worth correctly assessing your capabilities even before taking out a loan. Failure to make monthly payments on time can lead to dire consequences. In this case, the loan will still have to be repaid, but under very difficult circumstances.

Every citizen should know that the state is protecting his interests, and at any time he can contact the police, but the appeal must be based on solid grounds. In other words, in order to receive protection and relief, it is necessary that the organization that issued the loan violated the terms of the loan agreement or the law. In turn, the injured person is obliged to present specific facts confirming his words.

As supporting documents or other evidence, you can attach recordings of telephone conversations with agency representatives, as well as written statements of witnesses. It is worth worrying in advance about obtaining detailed information about an employee who acted in violation of current legislation. Such actions will allow you to protect yourself from the negative actions of debt collectors.

Conclusion

Last year, a law was issued regarding the work of collection agencies. Today, people who have debts to banks do not have to fear threats from such collectors, since the powers of these persons are very limited. If problems arise, as well as in the event of collectors exceeding their powers, the injured citizen can contact law enforcement agencies or the prosecutor to bring the guilty citizens to justice.

Collection agencies are organizations whose main activity is debt collection. The popularity of these services is growing as lending and, accordingly, loan defaults increase. This market in Russia is developing rapidly; most large banks cooperate with collection agencies. However, there is currently no specialized legal framework for their activities in Russia.

Collection agencies work according to two main schemes: on behalf of the creditor for a fee, or on their own behalf, if the collector buys the debt. The legal basis for the activities of collectors is the Civil Code and the Civil Procedure Code.

A specialized bill regulating the activities of collectors was developed in 2010, and its entry into force can be expected in the near future. However, current practice is such that there are no legal grounds for the work of collectors, and judicial practice is such that the court can take the side of both the debtor and the collector.

If a bank transfers a debt to a collection agency, another participant appears in a bilateral transaction between the bank and the creditor, whose duty is to expedite the return of the debt to the bank. The collection agency's responsibility is not only to repay the debt, but also to transmit information to the credit bureaus.

In the course of his work, the collector has the right to take actions that do not contradict the law. In particular, he has the right to collect information about the debtor, send him notifications, negotiate with him, facilitate pre-trial settlement of the dispute, as well as hold meetings with the debtor and represent the interests of the creditor in court. At the same time, an employee of a collection agency has the right to call the debtor only during the daytime; when starting a telephone conversation, he is obliged to introduce himself (not only personally, but also to name the organization of which he is a representative).

Collection agencies are required to act strictly within the law when carrying out their activities. In particular, they do not have the right to enter the debtor’s home without the permission of the owner or tenant, and they also do not have the right to seize funds and property to pay the debt.

The collector should not threaten the debtor, blackmail or intimidate him, or use obscene language during negotiations. Although this practice of “knocking out debts” was in effect relatively recently, it is contrary to Russian legislation. A debt collector who acts in this manner may be subject to criminal prosecution.

Today, most agencies adhere to the law, but may use practices such as publicizing information about the debtor. For example, representatives of a collection agency can provide information about debts to the debtor’s superiors, his neighbors or acquaintances, and apply psychological pressure (for example, calling the debtor and his relatives at night). All of these methods of “working” are illegal, and the debtor can protect himself from them.