office@marushko.com.ua

Debt collection companies shall submit documents for registration with the National Bank by 13 August 2021

24 May 2021

This is a mandatory requirement for debt collectors under the Law of Ukraine “On Amendments to Certain Laws of Ukraine on Consumer Protection in Settlement of Overdue Debts”, which has entered into force on 14 April and will become operative on 14 July 2021 (the “Law”).

According to the Law, all companies involved in the business of debt settlement are obliged to file documents for registration in the Register of Debt Collectors of the National Bank of Ukraine (the “Register”).

A debt settlement business falls under the regulation of the Law if it meets both of the following criteria:

An applicant gains the status of a debt collection company upon its registration in the Register. Existing debt collectors may apply for registration starting from 14 July 2021 through 13 August 2021.

Debt collection companies that are not included in the Register by 14 October 2021, will not be entitled to settle overdue debts. Moreover, all lenders shall terminate contracts with such unregistered debt collectors. A fine of appr. EUR 2,580 to EUR 4,120 is envisaged for lenders for engaging unregistered debt collectors.

The Law “On Consumer Lending” lists the documents and information to be submitted by debt collectors to the National Bank of Ukraine (the “NBU”).

Additionally, the NBU reserves the right to require the applicant to provide additional documents, information and/or explanations that are necessary to confirm the accuracy of the information provided. In this case, the term for documents consideration is paused until the applicant provides the necessary information or documents.

The following legal entities are not required to file documents for registration:

The Law generally aims at protecting consumers and restricting access of bad faith companies to the Ukrainian debt collection market and enhances the legal framework for debt collection activity.

The full text of the Law (in Ukrainian) is available here.

For more information, please contact:

Iryna Marushko

Managing Partner

i.marushko@marushko.com.ua

Olga Lyubun’

Senior Associate

o.lyubun@marushko.com.ua