Russians will be Allowed to Redeem Their Debts from Banks
OREANDA-NEWS. The Ministry of Economic Development offers to give borrowers the opportunity to redeem their debts from banks before transferring them to third parties. The experts of the Ministry of Economic Development have already prepared amendments to the law on the collection of debts from individuals and "On Microfinance Activities".
As the document says, laws on the collection of debts from individuals and the activities of MFIs need to be amended, suggesting the possibility of redeeming their debt at the lowest price before transferring the right of collection to collectors. The law is aimed at supporting citizens who find themselves in a difficult life situation and are unable to repay loans or loans and have already been denied debt restructuring.
In such cases, when the client simply stops paying, MFIs transfer debts to collectors at the lowest price, usually a few percent of the total amount of debt. At the same time, buyers of bad debts - collectors - do not always act legally during collection.
Therefore, the department suggests obliging lenders to offer to buy debt from the borrower before concluding an agreement with collectors. Also, the debtor can obtain the right at any time to repurchase his debt at a double price from the new owner (or for half the price, if he proves that the buyer of the debt knew about the violation by the bank of the obligation to offer the repayment of the debt to the debtor himself).
It is assumed that such rules will apply only to bona fide borrowers and will not affect malicious defaulters.