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Wednesday, December 2nd, 2020

Senate returned draft law on collection activities to Mazhilis for revision

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The draft law takes into account the specifics of legal relations and protects the interests of all participants in collection activities (collection agency, bank, creditor), and primarily a debtor.

Deputy Olga Perepechina noted the main objectives of this bill.

“Firstly, it is planned to get under control the sphere of debt collection, add the state control to it, remove dishonest participants and settle those aspects of relations that are not subject to other regulatory and legal acts. Secondly, it is proposed to tighten the punishment for violators”, she said.

In the opinion of the deputy, this bill will save debtors from the arbitrariness of collectors. At the same time, the National Bank must clearly monitor and prevent illegal actions.

Individuals and legal entities should carefully approach the opportunities that are currently provided for lending, and be responsible for repaying loans and loans.

“Today’s demand for time is also an increase in the responsibility of banks when granting loans. It is not necessary to repeat the mistakes of the previous years by distributing in the “left and right”, especially consumer loans, creating problems on the return”, O. Perepechina stressed.

The senator noted it is necessary to toughen requirements for second-tier banks, since the economic development of the country and the welfare of our citizens depend on the stability of the banking system.

In the opinion of Yerbolat Mukayev, the Senate deputy, this bill will allow to build a clear system of pre-trial recovery, which would work strictly in the legal field.

“Taking into account the social orientation, the bill has norms of direct action and provides for the protection of the rights of consumers of financial services, as well as strict regulation of the activities of collection agencies”, the senator said.

Ye. Mukayev added that the bill provides an additional debt settlement tool for the debtor, an opportunity for the debtor to again apply to the bank about considering the issue of restructuring his debts without bringing the case to court. This mechanism will ensure the preservation of public confidence in the financial system, will limit the growth of the shadow market of lending to the economy.

After considering the bill, the senators spoke in favor of including a rule that would oblige banks to monitor the use of loans issued on credit. In their opinion, the draft law is aimed at resolving of the issues of bad debts but it will not get rid of the reasons for their appearance.

At the end of the meeting, the Senate deputies decided to send the draft law “On Collector Activity” for revision to the Mazhilis of the Parliament of Kazakhstan.

Source: Kazakhstan 2050

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