Lawmakers want to introduce ethics rules for debt collectors in Ukraine

The Verkhovna Rada, Ukraine's parliament, has passed bill No. 4241 to amend certain legislative acts to introduce the so-called code of ethics for debt collectors.

Some 355 lawmakers, with a required minimum of 226 votes, backed the bill safeguarding Ukrainian citizens against unethical collection practices, an UNIAN correspondent reported on January 27.

Head of the Finance, Tax and Customs Policy Committee's subcommittee Olha Vasylevska-Smahliuk says the bill streamlines pretrial debt collection practices, as well as introducing a number of ethics rules for debt collectors.

"For example, the use of aggressive collection calls techniques is prohibited and times when a debt collector may contact a debtor are regulated," she said.

According to Vasylevska-Smahliuk, the document proposes a system of state controls over the observance of the ethics rules by debt collectors. Also, it suggests that the regulator, which is the National Bank of Ukraine (NBU), be authorized to license debt collectors.

Fines are proposed for companies that hire debt collectors who are not on the official register.

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Background

• On September 20, 2020, the Verkhovna Rada passed a draft law to safeguard financial services consumers' rights, obliging banks to inform potential borrowers about all forthcoming expenses on loans, including additional and related services provided by third parties.
• The bill also introduced the same rules for banks and non-bank financial institutions as regards advertising of financial services.