Article 6. Features of the pre-trial debt settlement procedure of the Law on Collection Activities

Home / RLA / Article 6. Features of the pre-trial debt settlement procedure of the Law on Collection Activities

1. Upon initial contact, the collection agency informs the individual debtor and (or) his representative about their (his) right to apply to the collection agency with a written application for changing the terms of the bank loan agreement or the micro–loan agreement.

The debtor, an individual, and (or) his representative, within thirty calendar days after the date of their (his) notification by the collection agency, apply (applies) to the collection agency with a written application and (or) through information technology facilities that enable the collection agency to identify the individual client through the use of identification tools provided for by the Law of the Republic Kazakhstan "On Payments and Payment Systems" (hereinafter – objects of informatization), on changing the terms of a bank loan agreement or a micro-loan agreement, which specifies the reasons and circumstances of the debt, information on income and expenses, family members, place of residence, property, and other information necessary for the creditor to review the application and determine the sufficiency of the debtor's own funds to fulfill obligations. under a bank loan agreement or a micro-loan agreement.

2. The collection agency is obliged to send it to the creditor within ten calendar days after the date of receipt of the written application.

3. The creditor, within fifteen calendar days after the date of receipt of the debtor's written application, reviews the proposed conditions for changing the bank loan agreement or the micro-loan agreement and informs the collection agency and the debtor and/or its representative in writing and/or through information technology facilities:

1) acceptance of the proposed amendments to the bank loan agreement or the micro-loan agreement;

2) their proposals on changing the terms of a bank loan agreement or a micro-loan agreement;

3) refusal to change the terms of a bank loan agreement or a micro-loan agreement, indicating a reasoned justification for the reasons for such refusal.

4. The collection agency, within ten calendar days after receiving the decision made by the creditor, informs the debtor about it.

5. During the period of collection activity in relation to the debtor, the creditor is not entitled to:

file a lawsuit with the court to recover his debts;

to demand payment of remuneration, commissions and other payments related to the issuance and servicing of a loan or micro-loan for the period when the debt is in the collection agency, as well as to charge a penalty (fine, fine) for late repayment of the principal debt and remuneration during the specified period.

6. The actions (inaction) of the creditor or the collection agency on the issue of the pre-trial debt settlement procedure provided for in this article may be appealed by the debtor and (or) his representative to the authorized body.

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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