"Debt is not a death sentence": How collectors operate and why hiding from them is futile.

You take someone else's and for a short time, you give away your own and forever. This phrase encapsulates the pain of a borrower. On one hand, credit is a financial lever, and in many cases, it is helpful. On the other hand, many struggle to repay it, especially if they miscalculated their debt load. Or they may not repay at all, leading to their debts being transferred to collectors. Who is currently collecting debts from Russians? How does this process work? What rights and obligations do borrowers and collectors have? And why have collectors become helpers rather than enemies? These and other topics were discussed by participants at the round table "Debt is not a sentence," held at the media group "Komsomolskaya Pravda."

“COLLECTOR - A DECENT CITIZEN”

Honestly, what image comes to mind when you hear the word "collector"? Most likely, it's someone using illegal methods of debt recovery, harassing with calls, and bothering relatives. But that is no longer the case. Collectors today are quite different.

Denis Zagrebelny

Photo: Evgeny BELIAKOV. Go to the Photo Bank of KP

- In the 90s, there were no collectors; there were bandits. They were used to ensure that a person could repay their debt, regardless of whether they were an entrepreneur or someone else. They operated using far from legal methods, often threatening. The first officially registered collection agency appeared in the 2000s. Despite their official status, their methods of interaction still tended to be harsh, involving threats and psychological pressure, etc. But in 2016, federal law No. 230 "On Collector Activities" was enacted, which clearly defined the norms for communicating with debtors. Today, a collector is a decent citizen; they do not resort to brute force but are not overly lenient either. They are morally resilient individuals, usually with high psychological endurance and the ability to articulate their points, argue the consequences, and find compromises, - says Denis Zagrebelny, General Director of the PCO "Protection Online".

According to him, the primary task of a professional collector today is to help the debtor navigate a complicated situation and find a way out. Collectors perform various functions, which can be broadly categorized into two types. The first type works under an agency agreement with the bank. The second type purchases the debt, known as a cession agreement.

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Victor Semenduev

Photo: Evgeny BELIAKOV. Go to the Photo Bank of KP

- Typically, those who buy debts are more flexible. They can offer additional discounts and payment plans. They are open to negotiations. Since the debt already belongs to them, their goal is to find a comfortable way out of a difficult financial situation, - says Victor Semenduev, a member of the Council of the NAPKA Association and Chairman of the Agency Business Committee.

He notes that it's easier to negotiate with collectors who have purchased debts. Therefore, one should engage with them rather than hide. Unfortunately, many debtors often do not answer calls, largely due to the same stereotypes, fearing that they will be pursued harshly for their debts. And that is a mistake!

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Valery Zotkin

Photo: Evgeny BELIAKOV. Go to the Photo Bank of KP

- Today, all modern collection organizations refer to debtors as "clients." They understand that this is a person just like anyone else, but with a debt that arose for various reasons. We do not know why, and they do not know what to do about it. Our task is to help them figure it out, - says Valery Zotkin, Chief Operating Officer of the PCO "Protection Online".

In other words, debtors often behave unconsciously, as if hiding from contact will make their debts disappear. In reality, this is not the case. Moreover, they harm not only themselves but also indirectly affect others.

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Ivan Komissarov

Photo: Evgeny BELIAKOV. Go to the Photo Bank of KP

- Banks do not lend their own money in the form of loans; they use the money of depositors. That is, the neighbor's grandmother who deposited her pension. By not repaying debts, a person effectively jeopardizes the country's economy. The banking system is structured such that when overdue debts accumulate on a bank's balance sheet, it is forced to allocate reserves and raise interest rates for responsible borrowers. This creates a colossal chain reaction, - says Ivan Komissarov, Head of Public Relations Department of the PCO "EOS".

WHAT HAPPENS IF YOU HIDE

Essentially, collectors are specialists who help find a compromise solution to avoid extreme measures, such as transferring the case to court and subsequent enforcement actions under the law. Once that happens, there will be no room for discounts.

- In reality, there are quite serious consequences, but not everyone looks far ahead or thinks strategically. It damages credit history, and the ability to borrow in the future diminishes. For instance, taking a mortgage. However, when a person cannot repay a loan, they begin to seek excuses. They postpone solving the problem, hoping that the situation will resolve itself. But the debt only grows, and the chances of repayment become more complex. As practice shows, the sooner the dialogue begins, the more favorable solutions can be found, - says Denis Zagrebelny.

- It is clear that in some situations, a person genuinely has no money, for example, if they have lost their job. But the task is this: just because you avoid conversations, the debt will not disappear; it remains. Therefore, the best solution for the client is to stay in contact, attempt to negotiate with the creditor (banks or professional collection organizations), and explain the situation. They will then understand what to do within their capabilities. There are millions of cases where we've managed to resolve these issues. Essentially, the task is not to enter into prolonged collection but to help the person exit this debt, finding the best financial solution, - adds Valery Zotkin.

- Life is unpredictable. A person who takes a loan in a market economy can fall into arrears. This is to be expected. Members of our association – essentially the entire actively working market – commit to operate according to this code of ethics. Importantly, it even overlaps with the regulations stipulated by law. As an industry, we want there to be a transparent, understandable, and honest market, - says Victor Semenduev.

For instance, in NAPKA (see "KP Reference" for details), there is even a special service called "Good to Complain," where a debtor can report if a collector has exceeded their authority.

SUMMARY

Collection activities in Russia have become more civilized. The stereotypical images of "debt collectors" have faded away. The rights of debtors are protected by federal law and a code of ethics developed by market participants themselves. Therefore, there is no need to fear collectors; it is essential to reach out to them and find a mutually beneficial way to alleviate the burden of debt, concluded the participants of the round table at "Komsomolskaya Pravda."

REFERENCE FROM "KP"

The National Association of Professional Collection Agencies (NAPKA) is the largest association in the Russian debt collection industry. It includes about 50 collection agencies advocating for the establishment of a civilized debt collection market in Russia and strict adherence to legislation and ethics. Currently, the vast majority of banks enter into agency and purchase agreements for overdue debts according to the standards recommended by NAPKA.

USEFUL LINK

Where to complain about collectors: zhaloba.napca.ru

ADVICE FROM "KP"

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