Protection from debt collectors

What is happening

A payday loan or credit card debt has been sold to a collection agency. The calls start in the morning and go on late into the evening, from different numbers and different voices, demanding that you "settle this now or it will get worse".

The collectors call not the borrower but their mother, former spouse or manager, and message their friends on social media. The borrower feels ashamed and is ready to pay anything to make it stop.

The calls concern a debt the person knows nothing about, or a loan paid off years ago. A request for documents is met with threats to "take it to court and seize your property".

What the law says

• The Federal Law No. 230-FZ of 3 July 2016 "On the Protection of the Rights and Legitimate Interests of Individuals in the Recovery of Overdue Debts and on Amendments to the Federal Law 'On Microfinance Activities and Microfinance Organisations'" (the Debt Recovery Law) sets out who may recover individuals' overdue debts: the creditors themselves and organisations on the state register of collection agencies, supervised by the Federal Bailiffs Service (FSSP).
• Threats, physical and psychological pressure, misleading statements about the amount of the debt or the consequences of non-payment, and disclosure of the debt without the debtor's consent are prohibited.
• Contact is restricted by time of day: not between 10 pm and 8 am on working days, or between 8 pm and 9 am at weekends and on public holidays; the number of calls, messages and visits is also limited.
• Relatives, neighbours and employers may be contacted only with the debtor's consent and if they themselves do not object; consent can be withdrawn.
• The debtor may give notice refusing contact or requiring contact only through a representative; the notice cannot be given straight away but only after a set period from when the arrears began. Refusing contact does not cancel the debt or prevent court action.
• Passing details of a debt to third parties also engages Federal Law No. 152-FZ of 27 July 2006 "On Personal Data", and such breaches can be reported to Roskomnadzor.

What we do

• We check who is calling you: whether the agency is on the register, how the debt passed to it and whether the assignment was valid.
• We explain how to record breaches: call recordings, screenshots, a call log and statements from relatives and colleagues.
• We prepare notices to the creditor and the collector: requests for documents on the debt, withdrawal of consent to contact third parties and, where possible, refusal of contact.
• We draft complaints to the FSSP, to the Bank of Russia where a bank or microfinance company is collecting, and to Roskomnadzor.
• We check the debt itself, its amount, charges, limitation and the validity of any assignment, and decide how best to deal with it.
• If the breaches caused harm, we prepare a claim for compensation for distress and represent you in court.

What we will need from you

• Details of the loan: the agreement, schedule and statements, if you still have them.
• Notices of assignment, letters and text messages from the collectors.
• Call recordings, screenshots of messages and the call log with dates and times.
• Contact details of relatives, colleagues and neighbours who were called, and whether they will confirm it.
• Proof of payment, if you believe the debt has been repaid.