Article 9. Grounds for exclusion of a collection agency from the register of collection agencies of the Law on Collection Activities

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1. A collection agency is excluded from the register of collection agencies in the following cases::

1) the commission by the collection agency and (or) its employees interacting with debtors of one of the unfair actions provided for in subparagraphs 7) and 8) of paragraph 5, paragraph 5-1 of Article 5 of this Law, three or more times within twelve consecutive calendar months;

1-1) identification of false information and information in the documents submitted for registration;

1-2) non-compliance with the requirements for the minimum amount of authorized capital established by the regulatory legal act of the authorized body;

2) repeated (two or more times within twelve consecutive calendar months) failure to submit or late submission of reports within the prescribed period, the submission of which is required in accordance with the regulatory legal acts of the National Bank of the Republic of Kazakhstan;

3) failure or late provision by the collection agency to the authorized body of information required in accordance with the legislation of the Republic of Kazakhstan on collection activities, or provision to the authorized body by the collection agency of information that does not contain information required in accordance with the legislation of the Republic of Kazakhstan on collection activities, or other requested information, or provision of false information, committed by a collection agency more than three times during twelve consecutive calendar months;

4) non-fulfillment or untimely fulfillment by the collection agency of the duties assumed by it and (or) assigned to it by the authorized body through the application of limited measures of influence committed by the collection agency more than three times within twelve consecutive calendar months;

5) failure to carry out collection activities for twelve consecutive calendar months;

6) the entry into force of the court's decision on the termination of the collection agency's activities;

7) obstructing three or more times in the last twelve calendar months by the collection agency to conduct an inspection;

8) adoption by the collection agency of a decision on the voluntary termination of collection activities.

In the case provided for in subparagraph 8) of part one of this paragraph, a letter confirming the fulfillment of all obligations, as well as the absence of previously acquired rights (claims) on the balance sheet, shall be attached to the collection agency's application for exclusion from the register of collection agencies.

2. In case of exclusion from the register of collection agencies, the authorized body shall notify the collection agency in writing within seven calendar days from the date of exclusion.

The notification is sent to the address indicated in the application for registration or in a written notification of a change in the location of the collection agency.

3. The decision of the authorized body to exclude a collection agency from the register of collection agencies may be appealed in accordance with the procedure established by the laws of the Republic of Kazakhstan.

An appeal against the decision of the authorized body to exclude a collection agency from the register of collection agencies does not suspend the execution of this decision.

4. A collection agency is prohibited from concluding new debt collection agreements and (or) agreements containing conditions for the transfer of rights (claims) under bank loan agreements or microcredit agreements to a collection agency (hereinafter referred to as the assignment agreement), from the moment the authorized body receives notification of its exclusion from the register of collection agencies.

5. The collection agency, within thirty calendar days after the date of receipt of the notification of the authorized body on its exclusion from the register of collection agencies or the adoption by the collection agency of a decision on the voluntary termination of collection activities, is obliged to:

to carry out the re-registration procedure by excluding from its name the words "collection agency", words derived from them, suggesting that it carries out collection activities;

to transfer to the creditor all information and documents on the debt that was transferred to the collection agency on the basis of the debt collection agreement, as of the date of receipt of the notification of the authorized body on its exclusion from the register of collection agencies or the decision of the collection agency on the voluntary termination of collection activities;

transfer to the person to whom the rights (claims) have been assigned under the bank loan agreement and (or) the microcredit agreement, or at his direction to the service company with which such person has concluded a new trust management agreement, all information and documents on the rights (claims) under the bank loan agreements and (or) the microcredit agreements transferred to a collection agency on the basis of a trust management agreement, as of the date of receipt of the notification of the authorized body on its exclusion from the register of collection agencies or the adoption by the collection agency of a decision on the voluntary termination of collection activities;

terminate all concluded debt collection agreements and/or trust management agreements.

The creditor is obliged to ensure the receipt of information and documents on debts that were transferred to the collection agency on the basis of a debt collection agreement, as well as to take measures to terminate debt collection agreements previously concluded with this collection agency.

The person to whom the rights (claims) have been assigned under the bank loan agreement and (or) the microcredit agreement, or the service company with which such person has concluded a new trust management agreement, are obliged to ensure the receipt of information and documents in the case provided for in paragraph four of part one of this paragraph.

In case of failure to perform the actions specified in the first part of this paragraph, the collection agency is subject to compulsory liquidation in accordance with the procedure established by the laws of the Republic of Kazakhstan.

6. The collection agency is obliged to notify the authorized body about its exclusion from the register of collection agencies within five calendar days from the date of receipt of the notification.:

creditors with whom debt collection agreements have been concluded;

persons with whom trust management agreements have been concluded, by the methods provided for in the trust management agreement;

debtors whose debts were transferred to a collection agency on the basis of a debt collection agreement by the methods provided for in paragraph 1 of Article 5 of this Law.

debtors whose rights (claims) under bank loan agreements or microcredit agreements have been transferred on the basis of trust management agreements by the methods provided for in paragraph 1 of Article 5 of this Law.

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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