Integrites has the honor to bring to your attention the following information, which we hope may be useful in your company activities.
On May 6, 2017, the Law On Collector Activity (hereinafter referred to as the “Law”) was adopted in the Republic of Kazakhstan. The Law regulates public relations related to the implementation of collection activities – the activities of the collection agency, aimed at pre-judicial recovery and settlement of debts, as well as to collect information, related to debt.
“Collection agency” is a legal entity, commercial organization (in the form of an commercial partnership), included in the register of collection agencies. The Law establishes the specifics of the foundation and operation of collection agencies, the requirements for employees of the collection agency, determines the specifics of state regulation of collection agencies and control over their activities.
Collection activity is carried out on the basis of the contract on rendering services to the creditor. Specifically, creditors according to the Law shall only be second-tier banks, organizations that are carrying out certain types of banking operations or microfinance organizations that have the right to claim indebtedness.
The collection agency has the right to interact with the debtor and (or) its representative, and (or) the third party connected by the obligations with the creditor within the framework of the bank loan agreement or the microcredit agreement, only as defined in the Law.
In addition, the Law regulates confidentiality issues. Thus, provision is made for secret of the collection activity, which includes any data on the debtor, creditor, debt, third parties, related obligations with the creditor under the bank loan agreement or microcredit agreement, on the terms of concluded debt collection agreements and other information received аnd (or) compiled by the collection agency at implementation of collection activity.
For the disclosure or illegal use of data constituting the secret protected by legislation of the Republic of Kazakhstan, the collection agencies, as well as other persons who have received access to the specified data on the basis of the Law and other laws of the Republic of Kazakhstan bear responsibility established by the laws of the Republic of Kazakhstan.
In our opinion, the importance of the Law is to ensure the interaction of collectors with debtors, fixing the debtor’s right to challenge requirements of the collection agency, as well as the possibility of appeal to the authorized body with a complaint to dishonesty of a collector.
The Law shall enter into force after twenty-one calendar days after its first official publication, that is, from June 2, 2017.