What is important to know about interaction with collectors?
When does a creditor transfer a debt to collectors?
Banks and microfinance organizations notify a borrower of a delay within 20 calendar days after it occurs and offer restructuring.
If the debt is not settled and the delay exceeds 90 days, the creditor can sell the debt (assign rights (claims) or transfer it to a collection agency for pre-trial collection.
However, starting from 1 July 2024, a two-year moratorium on assignment of rights (claims) for loans from individuals to collection agencies was introduced and it will be in effect until 1 May 2026.
During this period, sale of citizens' debts to collectors is prohibited, and settlement is possible only through restructuring, forgiveness of fines, penalties and commissions, or transfer of the debt for pre-trial collection without transfer of the right of claim. After the moratorium ends, debt assignment will be allowed only if the delay exceeds 24 months and the creditor carries out settlement procedures with mandatory forgiveness of penalties.
What rights and obligations does the debtor have?
The debtor has a right to:
- receive information from the collection agency about the collection agency, debt amount and structure;
- challenge claims of the collection agency in a court;
- settle the debt in the manner prescribed by the law on collection activities;
- choose a convenient method and period of interaction with the collector, on his own record the process of interaction with the collector;
- contact the Agency for Regulation and Development of the Financial Market with a complaint about actions (inaction) of the collection agency.
The debtor must:
- inform the collection agency about a change in his home address, telephone number and identity document details;
- interact with the collection agency for the purpose of debt settlement.
How must collectors work?
- call on weekdays from 08:00 a.m. to 09:00 p.m. no more than three times a week;
- meet with the debtor no more than three times a week and no more than once between 8:00 and 21:00 on weekdays;
- send written notices, text or voice messages via mobile phone.
The collection agency must, at each contact with the debtor, inform about the name of the collection agency, its registration number, location, to report the full name and position of the person who carries out interaction, name of the creditor.
What must collectors not do?
- mislead the debtor about the amount, nature and grounds for occurrence the debt;
- inform false full names, as well as incorrect information about employment and/or position of the employee of the collection agency;
- disseminate information that discredits honor, dignity and business reputation of the debtor or disclose information that may cause property damage to interests of the debtor;
- commit illegal acts that infringe on the rights and freedoms of the debtor, threatening his life and health, and also causing him property and other damage;
- exert pressure by threatening to use violence or destroying or damaging property of the debtor, insults, fraud, forgery of documents, blackmail.
When carrying out collection activities the collection agency must not:
- accept money (in cash or non-cash), as well as other property to pay off debt;
- demand that debt be paid off with property other than cash.
What to do if your rights are violated?
In case of illegal actions by collectors, citizens can file a complaint with the Agency for Regulation and Development of the Financial Market.
If violations are confirmed, relevant measures will be taken against the collection agency.
Updated register of collection agencies authorized to operate in Kazakhstan is posted on the official website of the Agency.
It should be noted that activities of collection agencies in Kazakhstan are regulated by the Collection Activities Law and they are carried out within the established rules.
More useful materials are available on Fingramota.kz website.