Article 18. Measures of influence and grounds for their application The Law on Collection Activities

Home / RLA / Article 18. Measures of influence and grounds for their application The Law on Collection Activities

1. In case of violation by the collection agency of the legislation of the Republic of Kazakhstan on collection activities, the banking legislation of the Republic of Kazakhstan or the legislation of the Republic of Kazakhstan on microfinance activities, identification of illegal actions or omissions of managers and other employees of the collection agency interacting with the debtor, the authorized body shall apply the measures of influence established by this article. Impact measures are defined as limited impact measures and sanctions.

In case of violation of the legislation of the Republic of Kazakhstan on credit bureaus and formation of credit histories, the collection agency is subject to the measures of influence provided for by the Law of the Republic of Kazakhstan "On Credit Bureaus and Formation of Credit Histories in the Republic of Kazakhstan".

2. The authorized body has the right to apply the following limited measures of influence to the collection agency:

1) send a mandatory written order to the collection agency for the adoption of mandatory corrective measures aimed at eliminating the identified violations and (or) the causes, as well as the conditions that contributed to their commission, within the prescribed period and (or) the need to submit an action plan to eliminate the identified violations and (or) the reasons, as well as the conditions that contributed to their commission (hereinafter referred to as the action plan).

The action plan, submitted within the time limit set by the written order, contains descriptions of violations and (or) the causes, as well as the conditions that contributed to their commission, a list of planned activities, the timing of their implementation, as well as responsible officials.

An appeal against a written order of the authorized body is carried out in accordance with the procedure established by the laws of the Republic of Kazakhstan. Appealing against the written order of the authorized body does not suspend its execution.;

2) issue a written warning about the possibility of applying sanctions to the collection agency provided for in paragraph 4 of this Article, if the authorized body detects, within one year after issuing this warning, repeated violations of the legislation of the Republic of Kazakhstan on collection activities, banking legislation of the Republic of Kazakhstan or legislation of the Republic of Kazakhstan on microfinance activities, similar to the violation for which the written warning;

3) draw up a written agreement between the authorized body and the collection agency on the need to immediately eliminate the identified violations and approve a list of measures to eliminate these violations, indicating the time frame for their elimination and (or) a list of restrictions that the collection agency assumes until the identified violations are eliminated.

The written agreement must be signed by the collection agency.;

4) to file a claim for the dismissal of a senior employee or other employee of a collection agency interacting with the debtor.

3. The collection agency is obliged to notify the authorized body of the implementation of the measures specified in the written order and written agreement, within the time limits provided for in these documents.

If the time limit set for the elimination of violations exceeds one month, the collection agency notifies the authorized body on a monthly basis until the twentieth day of the month about the implementation of measures to eliminate the identified violations and (or) the causes, as well as the conditions that contributed to their commission.

The application of one limited measure of influence does not exclude the application of other limited measures of influence in cases provided for by the laws of the Republic of Kazakhstan, does not suspend or terminate the previously taken measures.

4. The authorized body has the right to apply sanctions:

1) exclusion of a collection agency from the register of collection agencies on the grounds and in accordance with the procedure provided for in sub-paragraphs 1), 1-1), 1-2), 2), 3), 4), 5), 6) and 7) the first part of paragraph 1 of Article 9 of this Law;

2) imposition of a fine on a collection agency and collection from it on the grounds established by the laws of the Republic of Kazakhstan.

5. The decision of the authorized body to apply the measures of influence provided for in this article to the collection agency may be appealed in accordance with the procedure established by the laws of the Republic of Kazakhstan.

The Law of the Republic of Kazakhstan dated May 6, 2017 No. 62-VI.

This Law regulates public relations related to the implementation of collection activities, establishes the specifics of the creation and operation of collection agencies, and also defines the specifics of state regulation of collection agencies and control over their activities.

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Republic of Kazakhstan

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