Debt collection with help court in Russia is main tool for collector on new legislation.

Recover any problem debt in Russia for collectors has become more difficult. Their actions is much limited the Law of RF “About protection the rights and legal interests physical person in implementing actionson recover outstanding debts. Court has became the main place for recover outstanding debts since 2017.

Overview the main rights of debtors and limitation for collectors

Phone calls and contacts between collectors and debtors are strictly established. Calls are allowed two times a week (no more often), and to meet – once a week. Any contact must occur in weekends from 9 to 20, and the other days from 8 to 22. The phone number and email adress must be identified (the devices that using for hide the display of information are forbidden). The debtor has right in this case to refuse from contact with the collector.

The legislative bans for collectors are a cardinal deceleration in the collection procedure. Prior to the adoption of the new law, collectors worked with creditors on an «agent» scheme – they took into work portfolios of debts without buying them. They exacted hard methods – they rang systematically, met, pressed on debtors…

The government left to collectors one of the way of predicting the collection period – debt collection with help court. Now, only the court decision removes from the collectors the many limitation on contact with debtors. Experts forecast that in the new conditions of work, 12 months is an approximate payback period for companies’ investments in judicial enforcement.

Prior to the adoption of the new law, the executive procedures were a cheap way for collectors. But now, it is more costly method, because collectors have also been obliged to use expensive licensed equipment to record calls and process correspondence.

Problem debt collection in Russia in figures

Experts predict that the share of judicial permits for debt problems in 2017 will grow to 50%.

The state fee will be at least 400 rubles, and a maximum of 60 thousand rubles.

Penalties for violators of the new rules are increased to 2 million rubles.

The purchase of licensed equipment will cost collector agencies around 300 thousand euros.

For debtors, the cost of outstanding debts will increase by an average of 20% (costs for the work of court bailiffs, state duties and penalties).