The Law of the Republic of Kazakhstan of 6 May, 2017 № 62-VI «On collection activity»

The Law of the Republic of Kazakhstan of 6 May, 2017 № 62-VI
«On collection activity»

Unofficial translation

This Law regulates public relations related to the implementation of collection activities, establishes the peculiarities of creating and acting of collection agencies, and also determines the specifics of state regulation of collection agencies, control over their activities.

Chapter 1. GENERAL PROVISIONS

Article 1. Basic concepts used in this Law

The following basic concepts are used in this Law:

1) a debt under the bank loan agreement or a microcredit agreement (hereinafter - debt) is the debtor's obligations to the creditor for payment of principal, remuneration, commissions, forfeits (fines, penalties) under a bank loan agreement or microcredit agreement;

2) a debtor is an individual or a legal entity that has committed a failure to perform or improper performance of obligations under a bank loan agreement or a microcredit agreement;

3) accounting registration is an inclusion of a legal entity that intends to carry out collection activities into the register of collection agencies;

4) collection agency is a legal entity that is a commercial organization included in the register of collection agencies;

5) register of collection agencies is a single list of collection agencies of the authorized body in the field of collection activity;

6) collection activity is collection agency activity aimed at pre-judicial collection and settlement of debts, as well as collection of information related to debt;

7) an authorized body in the field of collection activity (hereinafter - the authorized body) is the National Bank of the Republic of Kazakhstan;

8) the creditor is a second-tier bank, an organization that performs certain types of banking operations, or a microfinance organization that has the right to claim debtor’s debt.

Article 2. Legislation of the Republic of Kazakhstan on collection activity

1. Legislation of the Republic of Kazakhstan on collection activity is based on the Constitution of the Republic of Kazakhstan, consists of Civil Code of the Republic of Kazakhstan, this Law and other normative legal acts of the Republic of Kazakhstan.

2. The effect of the laws of the Republic of Kazakhstan «On business partnerships» and «On partnerships with limited and additional liability» extends to collection agencies in the part not regulated by this Law.

3. If an international agreement ratified by the Republic of Kazakhstan establishes other rules than those contained in this Law, the rules of the international treaty shall apply.

Chapter 2. CREATION AND ACTIVITY OF A COLLECTION AGENCY

Article 3. Collection agency

1. A collection agency is created in an organizational and legal form of economic partnership.

2. The name of a collection agency must contain the words «collection agency». Reduction of the name of the collection agency is not allowed.