Russia's New Debt Law Brings Robot Collectors and Stricter Penalties
Russia has introduced significant changes to its debt collection process, with the Federal Bailiff Service gaining oversight of credit and citizens bank organizations. Citizens can now interact with a robot-collector, and stricter penalties have been implemented for violations of communication rules.
The new Federal Law No. 467, effective since February 1, 2024, has brought several updates to debt collection procedures in Russia. Notably, the Federal Supervisory Authority for Creditor Announcements has transferred its supervisory powers over collectors and microfinance institutions to the Federal Bailiff Service.
Citizens now have the option to interact with a robot-collector, an automated, intelligent debt collection agent. This innovation aims to streamline the process and reduce human error.
The law also introduces harsher penalties for collectors or microfinance organizations that repeatedly violate communication rules. These violations may now result in communication with debtors being limited to a single method. Furthermore, such violations can lead to criminal penalties, including up to five years in prison for threats of violence, property damage, or dissemination of false information.
Under the new law, creditors are prohibited from communicating with debtors who are undergoing bankruptcy, debt restructuring, or have certain disabilities or health conditions. Citizens can expect to receive messages through the Gosuslugi portal, but no more than twice a month per financial obligation. These changes aim to protect citizens' rights and ensure fair debt collection practices in Russia.
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