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 on one of the following grounds:

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;

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

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

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

5) repeated (more than three times within twelve consecutive calendar months) failure by the collection agency to provide, untimely provision to the authorized body of information required in accordance with the legislation of the Republic of Kazakhstan on collection activities, or other requested information, 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 providing false information;

6) repeated (more than three times within twelve consecutive calendar months) non-fulfillment, 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;

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

8) violation by the collection agency of the requirement of mandatory membership in a self-regulating organization in the field of collection activities, established by this Law;

9) the entry into force of the judicial act on the termination of the collection agency;

10) the collection agency has prevented an inspection three or more times in the last twelve calendar months;

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

In the case provided for in subparagraph 11) 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.

1-1. When determining the expediency of excluding a collection agency from the register of collection agencies, the following factors are taken into account::

1) the nature of violations and their consequences;

2) the scale and significance of the violations committed and their consequences;

3) the systematic nature and duration of violations;

4) the reasons for the occurrence of violations;

5) availability and effectiveness of previously applied limited impact measures;

6) taking independent measures aimed at eliminating the identified violations and their effectiveness.

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. The 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 and (or) microcredit agreements to the collection agency (hereinafter referred to as the assignment agreement), from the moment of receipt of the notification of the authorized body on its exclusion from the register of collection agencies.

From the moment of receiving the notification of the authorized body on its exclusion from the register of collection agencies, as well as a legal entity that has become the legal successor to the rights and obligations of this collection agency as a result of reorganization, it is prohibited to assign rights (claims) under a bank loan agreement and (or) a micro-loan agreement to a third party, except for the assignment of rights (requirements) to the persons specified in paragraph 1 of Article 63 of the Law of the Republic of Kazakhstan "On Banks and Banking Activities in the Republic of Kazakhstan", the first part of paragraph 5 of Article 9-1 of the Law of the Republic of Kazakhstan "On Microfinance activities".

Prior to termination of contractual relations with individuals under bank loan agreements and (or) microcredit agreements not related to business activities, a collection agency excluded from the register of collection agencies, as well as a legal entity that has become the legal successor to the rights and obligations of this collection agency as a result of reorganization, are required to comply with the requirements and restrictions, requirements imposed by the legislation of the Republic of Kazakhstan on the relationship between the lender and the borrower within the framework of a bank loan agreement and (or) a micro-loan agreement, as well as to update information on all debtors in the databases of credit bureaus.

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, must:

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.

President

Republic of Kazakhstan

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