LR: Draft law „Extrajudicial Debt Recovery”

The Draft law provides:

1)to set the requirements how the creditor or the debt recovery service provider has to organize thecommunication during the extrajudicial debt recovery:

  • to set the requirements for the information on the existance of the debt provided to the debtor;
  • to oblige the debtor to cooperate with the creditor and the debt recovery service provider and
  • to willingly repay the debt, as well as the order how to organize this cooperation;
  • to set the regulations how to the debtor can raise objections to the debt recovery service provider for the existance, amount and the term of payment of the debt;
  • to set the regulations for the communication between the debt recovery service provider and the creditor and the third parties to obtain the required information on the debtor;
  • to set the regulations on the communication culture realized during the interface with the debtor;
  • to establish the communication tools to be realized during the interface with the debtor;
  • determine the allowable time and frequency of communication with the debtor.

 2)to solve the debt recovery expenses reimbursement problem

  • to set the maximum amount of debt recovery expenses allowed to be claimed from the debtor by the debt recovery service provider;
  • to set the not requited expenses for the debt recovery service provider.

 3)to solve the personal data use problem in the extrajudicial debt recovery

  • to set the requirements for the debtors credit history database creation and maintenance;
  • to establish the information on the debtor to be received in the State Information System.

 4)to set the requirements for the debt recovery service provider to receive a special permission (licence) for providing debt recovery services.

The Draft law has been submitted to the Parliament.