Sixty-four debt collection firms file for registration with central bank

Sixty-four debt collection firms file for registration with central bank

Ukrinform
Sixty-four legal entities have submitted to the National Bank of Ukraine applications for registration as official debt collection companies.

That’s according to the NBU press service, Ukrinform reports.

"The one-month deadline for submission of applications for registration of legal entities that intend to acquire the status of a debt collection company expired on August 13, 2021. These are companies that on the day of entry into force of the relevant legal requirements were engaged in settling overdue debts and intended to continue operations. Thus, 64 packages of documents were submitted by 64 applicant companies, including 12 non-bank financial institutions and 52 legal entities which hold no licenses for providing financial services," the statement reads.

Read also: Number of Ukrainian debtors up by almost 15% in H1 2021

The National Bank must review each package within 30 working days. The NBU will notify each applicant of the outcome of the vetting routine.

The National Bank reminds that only officially registered firms shall be allowed to render debt settlement services on consumer loans. The register is public and posted on the official website of the National Bank.

By referring to the register, both lenders and consumers of financial services will be able to verify information about a debt collection company. If it is not in the register after October 14, 2021, lenders or new creditors will be obliged to terminate their contract with such a legal entity.

As reported earlier, the requirement for registration emerged with the enforcement on July 14, 2021, of Law on amendments to certain laws of Ukraine on consumer protection in settlement of overdue debts. It will allow reforming the market of debt collection services. Only companies with an impeccable business reputation, professionally qualified managers, and a transparent ownership structure will be able to work with settling debts on consumer loans.

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