The Federal Chamber of Notaries (FNC), the Central Bank and the Ministry of Justice of Russia are preparing changes to the legislation to limit the ability of banks and collectors to collect debts by means of an extrajudicial notarial execution order, RBC reports with reference to a representative of the Central Bank.
Author:
https://rb.ru/author/mihail-zelenin/
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According to the publication’s interlocutor, work on changing debt collection procedures began after President Vladimir Putin in August ordered the regulator and the government “to work on the issue of informing borrowers.” As a result, the Central Bank proposed to include in loan contracts a clause on refusal to collect debt by writ of execution, as well as oblige banks to notify clients about the conditions of such debt collection and the right of the client not to accept this. during the “reflection period”.
- An execution registration is a special notarial mark on a contract, which allows the creditor to recover money or property from a debtor who is evading payment of the debt, without a court decision. According to the law, the execution order refers only to the principal debt, interest and the fee for the order itself, excluding late fees and penalties. Since 2021, the registration can be received and sent to bailiffs digitally through the electronic notarial system after mandatory notification to the debtor.
Formally, the debtor can appeal the collection based on registration before the courts. After the case is transferred to the bailiffs, enforcement proceedings are initiated no later than six days later. At the same time, the Federal Chamber of Notaries (FNC) notes that, in fact, the debtor does not have time to challenge it completely: bailiffs can write off money from accounts faster.
According to the Federal Tax Service, in January-August 2024, almost 730 thousand execution orders were issued in Russia to recover money or property from individuals. Compared to the same period in 2023, this figure increased by 47%. The National Association of Collection Agencies RBC reported that in the portfolios of collectors, debts with a notarial execution order do not represent more than 10% of all cases.
Previously, RB.RU talked about the conditions under which parents’ debts can be transmitted to their children by inheritance.
Author:
Mikhail Zelenin
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
