Collectors ran into the law
The bill on collection in Russia is subject to change. This initiative was made by the Prosecutor General, who has to process a shaft of complaints from citizens about illegal actions of collectors. According to the Prosecutor General, the sphere needs to be licensed instead of the previously planned creation of a self-regulatory institution.
The volume of overdue monetary obligations of citizens to banks reached 310.2 billion rubles. By July of this year, collectors had sold overdue debts worth more than 86 billion rubles. Over the past year, the cession market has grown by 30%. In 2011, we bought debts of 78.7 billion rubles, while in 2010 the total amount was 60.2 billion rubles.
A separate law that would govern the implementation of collection activities in Russia does not exist. So far, only the bill “On the collection of overdue debts”, which is being developed by the Ministry of Economic Development of the Russian Federation, is in force. However, he has not yet entered either the government or the State Duma. According to the latest edition, a self-regulatory organization should deal with the control of market participants.
In connection with the body of complaints about the actions of collectors, the judicial authorities also try to regulate this market to one degree or another. In early July, the Supreme Court adopted a ruling that the transfer of bad debt to collectors is possible only if such is specified in the contract. Moreover, this resolution will apply only to those loan agreements that are concluded after its release.
In June, the Plenary Session of the Supreme Council considered a draft resolution “On the consideration by courts of civil cases in consumer protection disputes,” according to which, selling collectors of overdue debts is completely illegal practice. As you can see, the Sun adopted a milder resolution, noting only that this rule should be spelled out in the contract. That is, now this fad will appear in all contracts without exception.
In the banking sector, however, they indicate that this resolution even in this form will negatively affect the collection of already existing arrears in debts and note the possibility of an increase in the “bubble” of arrears, which now pollutes the balance sheets of banks and is forced to be prolonged. “Once you have to finish the game with this, otherwise it will come to a very serious soap bubble that may burst,” said Alexander Murychev, chairman of the board of the Association of Regional Banks of Russia, executive vice president of the Russian Union of Industrialists and Entrepreneurs.
But the average level of debt is still falling and now amounts to about 29 thousand rubles, against 64 thousand rubles a year earlier and 88.6 thousand in 2010. The period of delay also falls. In 2012, it fell to 33 months compared to 42 months in 2011.
The Attorney General’s Office is trying to amend the bill on collection activities that is being prepared. The need to seriously amend the bill on collection activities is mentioned in a letter sent by the Prosecutor General to the Ministry of Economic Development, Kommersant reports.
In addition to the need for licensing, the agency also believes that it is necessary to establish a “procedure for damages” by the collector to the borrower when disclosing bank secrets or personal data.
Amid a flurry of negative information from the fronts of the struggle for bank income, some collectors are ready to agree to the proposed prosecutorial amendments. “Of course, those terrible examples that the prosecutor’s leads have to civilized collectors have nothing to do with it, but if licenses help to separate the collectors from the bandits, we agree to do this,” says Director General of the USB Center Agency Alexander Fedorov. ideas about the complete prohibition of collection activities ceased to be discussed. ”
At the same time, small loans are most often sold to collectors. They mainly deal with consumer loans, which account for over 70% of the already existing overdue loans and credit card debts, which occupy over 20%.
At the same time, an increase in the volume of arrears in mortgage loans is recorded. As of June 1, 2012, according to the Central Bank, the volume of overdue mortgage debt exceeded 46 billion rubles, amounting to 2.8% of the banks’ mortgage portfolio. Relative to the total volume of loans overdue by individuals, the mortgage is 14.9%.
Moreover, about a third of mortgage debt falls on Moscow, and another 5% – on St. Petersburg. Meanwhile, banks are mainly engaged in working with mortgage borrowers. According to expert estimates, the share of mortgage loans in the portfolio of collection agencies is 3-6%. Sequoia Credit Consolidation predicts that by the end of the year, collectors will be engaged in knocking out already 8% of mortgage debt.