On collection activity

The Law of the Republic of Kazakhstan dated 6 May 2017 № 62-IV.

      Unofficial translation

      Note of the RCLI!
      See Article 22 of this Law for the enactment procedure.

      This Law regulates public relations related to the implementation of collection activities, establishes the peculiarities of creating and acting of collection agencies, and also determines the specifics of state regulation of collection agencies, control over their activities.

Chapter 1. GENERAL PROVISIONS 1. Basic concepts used in this Law

      The following basic concepts are used in this Law:

      1) a debt under the bank loan agreement or a microcredit agreement (hereinafter - debt) is the debtor's obligations to the creditor for payment of principal, remuneration, commissions, forfeits (fines, penalties) under a bank loan agreement or microcredit agreement;

      2) a debtor is an individual or a legal entity that has committed a failure to perform or improper performance of obligations under a bank loan agreement or a microcredit agreement;

      3) accounting registration is an inclusion of a legal entity that intends to carry out collection activities into the register of collection agencies;

      4) collection agency is a legal entity that is a commercial organization included in the register of collection agencies;

      5) register of collection agencies is a single list of collection agencies of the authorized body in the field of collection activity;

      6) collection activity is the activity of a collection agency aimed at pre-judicial collection and settlement of debts, as well as collection of information related to debt;

      7) an authorized body in the field of collection activity (hereinafter - the authorized body) is the National Bank of the Republic of Kazakhstan;

      8) the creditor is a second-tier bank, an organization that performs certain types of banking operations, or a microfinance organization that has the right to claim debtor’s debt.

Article 2. Legislation of the Republic of Kazakhstan on collection activity

      1. Legislation of the Republic of Kazakhstan on collection activity is based on the Constitution of the Republic of Kazakhstan, consists of Civil Code of the Republic of Kazakhstan, this Law and other normative legal acts of the Republic of Kazakhstan.

      2. The effect of the laws of the Republic of Kazakhstan "On business partnerships" and "On partnerships with limited and additional liability" extends to collection agencies in the part not regulated by this Law.

      3. If an international agreement ratified by the Republic of Kazakhstan establishes other rules than those contained in this Law, the rules of the international treaty shall apply.

Chapter 2. CREATION AND ACTIVITY OF A COLLECTION AGENCY Article 3. Collection agency

      1. A collection agency is created in an organizational and legal form of economic partnership.

      2. The name of a collection agency must contain the words "collection agency". Reduction of the name of the collection agency is not allowed.

      A legal entity that is not included in the register of collection agencies has no right to carry out collection activities, characterize itself as engaged in collection activities, and use in its name the words "collection agency", derived from them words that imply that it collects.

      3. No person can directly or indirectly together with other person (persons) own or (and) use and (or) dispose of ten or more percent of shares in the authorized capital of the collection agency or have control if it:

      1) did not disclose information about itself and individuals who directly or indirectly own and (or) use, and (or) dispose of more than twenty five percent of shares in the authorized capital or placed shares of the person named (excluding preferred and redeemed by the company) shares in the first paragraph of this paragraph, as well as on individuals exercising control over the mentioned person, an authorized body;

      2) is an individual who has an unpaid or outstanding previous conviction;

      3) is a legal entity, the founder (shareholder, participant) or a manager of which was previously the first director or founder (participant) of the collection agency in the period not more than one year before the decision of the authorized body to exclude this collection agency from the collection agencies list on the grounds provided for in subparagraphs 1), 2), 3), 4), 5), 6) and 7) of the first part of paragraph 1 of Article 9 of this Law.

      Notes.

      1. Indirect ownership and (or) use, and (or) disposal of shares in the authorized capital or placed shares of a legal entity (excluding privileged and redeemed by the company) for the purposes of this Law shall mean the ability to determine the decisions of a legal entity, person or persons who jointly own and (or) use, and (or) manage ten or more percent of shares in the authorized capital of a legal entity, by owning (voting) stocks (shares in the authorized capital) other legal entities.

      2. Control of a legal entity (control) for the purposes of this Law means the ability to determine the decisions made by a legal entity.

Article 4. Grounds for the implementation of collection activity

      1. Collection activity is carried out on the basis of a contract, the subject of which is the provision of services to the creditor for pre-trial recovery and settlement of debts, as well as for collection of information related to the debt (hereinafter referred to as the debt collection agreement).

      2. Collector activity is carried out in case of debt.

      3. The agreement on collection of debts between the collection agency and the creditor shall be concluded in written and shall contain the following conditions:

      1) the rights and obligations of the parties;

      2) responsibility of the parties;

      3) data of a debtor - an individual, allowing to identify his identity;

      4) name, location, business identification number with respect to the legal entity;

      5) amount of debt;

      6) the debt structure (the amount of the principal debt, remuneration, commissions, forfeits (fines, penalties);

      7) if there is information about the guarantor or warrantor under the bank loan agreement or the microcredit agreement;

      8) if there is information on the subject of the pledge, if the right of pledge under a bank loan agreement or a microcredit agreement is subject to registration;

      9) amount of remuneration under the contract;

      10) the term of the contract;

      11) the procedure and terms for notifying (informing) the creditor of the collection agency about payments made earlier by the debtor and (or) changing the amounts of the debt;

      12) the procedure for providing information to the collection agency on the progress of the performance of the debt collection agreement;

      13) the procedure and terms for termination of the contract for recovery of debts in the case provided for in the passage 4 of part 1, paragraph 5 of Article 9 of this Law, as well as the procedure and terms for the return of documents;

      14) the procedure and conditions for the early termination of collection activities with respect to the debtor.

      The debt collection agreement can be concluded in relation to one or more debtors with the transfer of the register (registers) of debtors in paper form or in electronic form, which (should) contain the information specified in part 1of this paragraph.

      The list of documents and information on the debtor related to the performance of the debt collection agreement, information on measures taken by the creditor regarding the debtor for the settlement of arrears stipulated by the laws of the Republic of Kazakhstan, are also attached to the debt collection agreement. The information is indicated for the period from the last date of default or improper performance of obligations under a bank loan agreement or a microcredit loan agreement before the transfer of the debt to the collection agency.

      The term of rendering services on collection activities with respect to debt under a contract for the collection of arrears must be at least six months and not more than five years.

      Early termination of collection activities with respect to the debtor is allowed in cases provided for by this Law or a contract for recovery of debts.

      Debt transferred to the collection agency under the agreement on debt collection can not be transferred to another collection agency.

      On issues not regulated by this Law, the provisions of the Civil Code of the Republic of Kazakhstan on commissioning and provision of paid services are applied to the contract on recovery of debts.

      4. It is not allowed to carry out collection activities with respect to the debtor - an individual whose debt is secured by a mortgage in the form of a home.

Article 5. Rules for the implementation of collection activity

      1. The collection agency has the right to interact with the debtor and (or) his/her representative, and (or) a third person connected with the lender in the framework of a bank loan agreement or a microcredit contract, by:

      1) telephone conversations;

      2) personal meetings;

      3) written (post) messages sent to a debtor - an individual at the place of residence (legal address), to a debtor - a legal entity at the place of location (actual address);

      4) text, voice and other messages by cellular communication;

      5) via the Internet.

      2. The interaction of a collection agency with a debtor and (or) his/her representative, and (or) a third person, related with obligations to a creditor under the bank loan agreement or microcredit agreement, should be carried out:

      1) at the primary contact with the message about:

      the name of the collection agency and the number of registration in the register of collection agencies;

      location of the collection agency;

      surname, name, patronymic (if it is indicated in the identity document) and the position of a person who interacts with the debtor;

      the name of a creditor;

      transfer of a debt to the collection agency by the creditor;

      the structure of a debt, the balance of overdue and current principal amounts, remuneration, commissions, forfeits (fines, penalties) stipulated in the bank loan agreement or microcredit agreement;

      responsibilities and other obligations of a debtor provided for in the bank loan agreement or microcredit agreement, laws of the Republic of Kazakhstan, as well as the consequences of non-fulfillment or improper performance of obligations stipulated in the bank loan agreement or microcredit agreement.

      Other information that is not provided for in this subparagraph and which is not a commercial or other secret protected by the laws of the Republic of Kazakhstan shall be notified to a debtor only at his/her request;

      2) during the period from 8.00a.m. to 21.00 p.m. on weekdays by the time of place of residence or location of a debtor or the place of registration of a debtor if the other period of interaction from the period of time specified by the collection agency within the time period specified in this subparagraph is not determined by a debtor at personal appeal to the collection agency;

      3) no more than three times a week and no more than once in the period from 8.00a.m. to 21.00 p.m. on weekdays with personal contact on the initiative of a collection agency at the place of residence or location or place of registration of a debtor or in the premises of a collection agency (branch, representative office) at the place of its location;

      4) no more than three times in the period from 8.00a.m. to 21.00 p.m. on weekdays by means of telephone negotiations initiated by a collection agency;

      5) by providing, at the request of a debtor, information and copies of documents confirming the authority of a collection agency to implement collection activities with respect to the debt, with the exception of information relating to commercial or other secrets protected by the laws of the Republic of Kazakhstan;

      6) fixing the process of interaction with the help of audio or video equipment in the premises of a collection agency (branch, representative office) at the place of its location;

      7) ensuring the security of documents and information received from a creditor, a debtor and / or his/her representative, and (or) third parties, including bank secret, the secret of providing microcredit, commercial or other secrets protected by the laws of the Republic of Kazakhstan, personal data of a debtor and (or) his/her representative, and (or) third parties.

      The requirements stipulated in subparagraphs 2), 3) and 4) of the first part of this paragraph shall not apply to the interaction of a collection agency with a debtor and / or his/her representative violating (breaching) obligations stipulated by paragraph 2 of Article 16 of this Law.

      Note. For the purposes of this item, weekdays are days of the week from Monday to Friday, which are not weekend or holiday (national and state holidays).

      3. In case of initial contact, a collection agency shall also inform a debtor-individual and / or his/her representative about their (his) right to apply to a collection agency with a written application containing information on the reasons for the arrears, incomes and other confirmed circumstances (facts) that stipulate their (his) petition for changing the terms of a bank loan agreement or microcredit agreement.

      4. When interacting with any individual who is not a person specified in the passage 1, paragraph 1 of this article, the collection agency shall provide the following information:

      the name of a collection agency and the number of registration in the register of collection agencies;

      surname, name, patronymic (if it is specified in the document proving the identity) and a position of a collection agency employee.

      The interaction of a collection agency with an individual specified in part one of this paragraph shall be carried out subject to the requirements specified in subparagraphs 2), 3), 4), 6) and 7) of the first part of paragraph 2 of this article, and also if this person does not express disagreement on the interaction with a collection agency, including orally.

      5. When interacting with a debtor and (or) his/her representative and (or) a third person, a collection agency is prohibited from carrying out the following unfair actions:

      1) to use other methods of interaction with a debtor and (or) his/her representative, and (or) a third person, not provided for by paragraph 1 of this article;

      2) to violate the requirements provided for in paragraph 2 of this article;

      3) to disseminate information discrediting honor, dignity and business reputation of a person a collection agency interacts with, or disclose information that may cause property damage to the interests of these persons;

      4) to commit illegal acts that infringe upon the rights and freedom of a person whom a collection agency interacts with, threatening their lives and health, and also entailing the infliction of property and other harm to that person;

      5) to exert pressure by threatening to use violence or destroying or damaging the property of a debtor and / or his/her representative and (or) third parties, insulting, fraudulent, forgery of documents, blackmail, forcing a debtor to fulfill obligations under the bank loan agreement or the contract for providing microcredit;

      6) to introduce a person whom a collection agency interacts in error regarding the size, nature and grounds for the occurrence of indebtedness;

      7) accept money (in cash or non-cash form), as well as other property to repay the debt;

      8) demand repayment of the debt with other property, other than money;

      9) disclose a commercial or other secret protected by the laws of the Republic of Kazakhstan received from a creditor and (or) his/her representative and (or) third parties, with the exception of cases provided for by the laws of the Republic of Kazakhstan.

      6. The collection agency, independently or at the request of an authorized body, is obliged to take measures to terminate the authority of an employee to interact with the persons specified in the first passage of paragraph 1 and the first passage, part 1 of paragraph 4 of this article if the norms of this article are violated and provide information to an authorized body within three working days.

      7. The requirements of paragraphs 1, 2, 4, subparagraphs 1), 2), 3), 4), 5), 6) and 9) of paragraph 5 and paragraph 6 of this article apply to a collection agency when exercising its creditor rights arising as a result of the assignment of a right (claim) under a bank loan agreement or a microcredit contract.

Article 6. Peculiarities of pre-judicial settlement of debt

      1. In order to realize the right provided for in paragraph 3 of Article 5 of this Law, a debtor - an individual and (or) his/her representative shall apply to a collection agency with a written application for terms change of a bank loan agreement or microcredit agreement within 30 calendar days after the date of their (his) notification by a collection agency. The written application disclose information on the reasons for the occurrence of debts, other confirmed facts (facts), which determine its request for the terms change of a bank loan agreement or microcredit agreement, as well as reliable information about education, income and expenditure level, family members, place of residence, availability of property, other information necessary for a creditor to consider a written application and determine the sufficiency of a debtor’s own resources to perform the obligations under a bank loan agreement or a microcredit contract.

      2. A collection agency, within ten calendar days after the day of receipt of a written application, shall send it to the creditor.

      3. A creditor, within fifteen calendar days after the day of receipt of a written application of a debtor, shall consider the proposed conditions for changing the bank loan contract or the microcredit agreement and inform the collection agency in written form about:

      1) agreement with the proposed changes to a bank loan agreement or microcredit agreement;

      2) its proposals for changing the terms of a bank loan agreement or microcredit agreement;

      3) refusal to change the terms of a bank loan agreement or microcredit agreement, indicating a reasoned justification for such a refusal.

      4. The collection agency, within ten calendar days after receiving the decision taken by a creditor, shall inform a debtor about it.

      5. During the period of collection activities with respect to the debtor, a creditor is not entitled:

      to claim to the court to recover his debts;

      to demand the payment of remuneration accrued during the period when the debt is in the work of a collection agency, and also to impose a forfeit (fine, penalty) for the late payment of a principal debt and compensation.

      6. The actions (inaction) of a creditor or a collection agency on the issue of pre-judicial settlement of a debt provided for in this article may be appealed by a debtor and (or) his/her representative to the authorized body.

Article 7. Registration of a legal entity that intends to carry out collection activity

      1. A legal entity that intends to carry out collection activities shall be subject to registration within three months from the date of its state registration (re-registration) with the judicial authorities.

      2. For the passage of registration, a legal entity that intends to carry out collection activities shall submit to the authorized body:

      1) an application form;

      2) provision on the internal control service (if any);

      3) information on founders (participants), as well as senior officials as of the date preceding the date of submission of an application;

      4) a copy of an agreement on provision of information, concluded in accordance with the Law of the Republic of Kazakhstan "On Credit Bureaus and Formation of Credit Histories in the Republic of Kazakhstan", and a copy of the document on compliance with the requirements for participants in the system of forming credit histories and their use;

      5) information on employees who will interact with debtors and (or) their representatives, and (or) third parties, bound obligations with the creditor under a bank loan agreement or a microcredit agreement;

      6) information on branches and (or) representative offices.

      3. The documents specified in paragraph 2 of this article shall be submitted by a legal entity that intends to carry out collection activities, on paper or in electronic form in accordance with the rules for passing the accounting registration and maintaining the register of collection agencies approved by the authorized body.

      4. The authorized body shall check the completeness of the submitted documents within two working days from the receipt of documents for the passage of registration.

      In case that a legal entity that intends to carry out collection activities has an incomplete set of documents, the authorized body shall give a reasoned refusal in written form to further consideration of an application in the terms specified in part one of this paragraph.

      5. The authorized body shall consider an application for the passage of registration within fifteen working days from the date of submission of the full package of documents.

      6. Within the period established by paragraph 5 of this article, the authorized body is obliged to enter a legal entity that intends to carry out collection activities in the register of collection agencies and notify him of this decision and registration number or give a reasoned response in written form on the reasons for the refusal of an account registration.

      7. The register of collection agencies that have passed the registration is placed on the Internet resource of the authorized body.

Article 8. Reasons for refusal in the registration of a legal entity that intends to carry out collection activities

      1. The refusal to register a legal entity that intends to carry out collection activities shall be given in the following cases:

      1) providing false data and information subject to disclosure in the documents specified in paragraph 2 of Article 7 of this Law;

      2) inconsistencies between employees of a legal entity that intends to carry out collection activities to the requirements provided for in paragraphs 2 and 3 of Article 12 of this Law;

      3) inconsistencies of a person, who alone or jointly with another (other) person (s) directly or indirectly owning and (or) using, and (or) managing ten or more percent of shares in the authorized capital of a legal entity intending to carry out collection activities; having the control, to the requirements stipulated by paragraph 3 of Article 3 of this Law;

      4) appeals after the expiration of three months from the date of state registration (re-registration) in the bodies of justice to the authorized body with an application for registration;

      5) non-compliance with the requirement established by paragraph 1 of Article 21 of this Law.

      2. In case of refusal to register by the reasons provided for in subparagraphs 1), 2) and 3) of paragraph 1 of this article, a legal entity that intends to carry out collection activities within thirty working days after the day of receipt of the refusal on registration has the right to re-submit documents in accordance with paragraph 2 of Article 7 of this Law or is obliged to conduct the procedure of re-registration by deleting from its name the words "collection agency", derived words from them, suggesting that it performs collection activity.

      If a legal entity that intends to carry out collection activities receives refusal for registration on the reasons provided for in subparagraphs 4) and 5) of paragraph 1 of this article, such a legal entity is obliged to conduct the procedure of re-registration by deleting from its name the words "collection agency", derivatives from these words, suggesting that it performs collection activities.

      If a legal entity fails to perform the actions specified in parts one and two of this paragraph, it is subject to compulsory liquidation in accordance with the procedure established by the laws of the Republic of Kazakhstan.

Article 9. Reasons for excluding a collection agency from the register of collection agencies

      1. The collection agency is excluded from the register of collection agencies in the following cases:

      1) committing one of the unfair actions provided for by subparagraphs 3), 4), 5), 7) and 8) of paragraph 5 of Article 5 of this Law, more than three times during six consecutive calendar months;

      2) failure to submit a report by a collection agency in due time, the submission of which is required in accordance with regulatory legal acts of the authorized body, committed more than three times during the twelve consecutive calendar months;

      3) failure to provide, untimely provision with information the authorized body by a collection agency in accordance with the legislation of the Republic of Kazakhstan on collection activities or providing the authorized body with the information that does not contain information required to be submitted in accordance with the legislation of the Republic of Kazakhstan on collection activities, or any other requested information, or provision of inaccurate information, committed by a collection agency for more than three times during the twelve consecutive calendar months;

      4) non-fulfillment, untimely performance of obligations by a collection agency assumed by it and (or) assigned to it by an authorized body through the application of limited measures of influence committed by a collection agency more than three times during the twelve consecutive calendar months;

      5) failure to perform collection activities within twelve consecutive calendar months from the date of inclusion in the register of collection agencies;

      6) entry into legal force of the court decision on termination of the collection agency;

      7) obstruction to conduct verification three or more times during the last twelve calendar months by a collection agency;

      8) collection agency's decision to voluntarily stop collection activities.

      In case provided for in subparagraph 8) of the first part of this paragraph, a letter on confirmation of fulfillment of all obligations, as well as an absence of previously acquired rights (claims) on the balance sheet, is attached to the application of a collection agency on exclusion from the register of collection agencies.

      2. In case of exclusion from the register of collection agencies, the authorized body shall notify the collection agency in written form within seven calendar days from the date of exclusion.

      The notification is sent to the address indicated in the application for registration or in the written notification of the change in the location of a collection agency.

      3. The decision of an authorized body to exclude the collection agency from the register of collection agencies can be appealed to the court.

      Appealing the decision of an authorized body to exclude the collection agency from the register of collection agencies does not suspend execution of this decision.

      4. The collection agency is prohibited to make new contracts for collection of debts and (or) contracts containing the conditions for the transfer of rights (claims) under bank loan agreements or microcredit contracts to the collection agency (hereinafter referred to as the assignment contract) from the moment of receiving notification from an authorized body on its exclusion from the register of collection agencies.

      5. The collection agency within thirty calendar days after the day of receipt of notification of an authorized body on exclusion of it from the register of collection agencies or adoption by a collection agency of decision on voluntary termination of collection activity is obliged:

      to carry out the procedure of re-registration by deleting from its name the words "collection agency", derived words from them, suggesting that it performs collection activities;

      to transfer to the creditor all information and documents on the debt that was transferred to a collection agency on the basis of the debt collection agreement, as of the date of receipt of notification on exclusion of it from the register of collection agencies from an authorized body or the collection agency's decision to voluntarily stop collection activities;

      terminate all concluded agreements on recovery of debts.

      The creditor is obliged to ensure the receipt of information and documents on debts, which was transferred to a collection agency on the basis of an agreement on collection of debts, and to take measures to terminate previously concluded agreements with a collection agency on collection of debts.

      In case of failure to perform the actions specified in part one of this paragraph, a collection agency shall be subject to compulsory liquidation in accordance with the procedure established by the laws of the Republic of Kazakhstan.

      6. The collection agency is obliged to notify about it within five calendar days from the date of receipt of notification from an authorized body about its exclusion from the register of collection agencies:

      creditors with whom agreements on collection of debts were concluded;

      debtors whose debts were transferred to a collection agency on the basis of a contract for collection of debts, in the ways provided for in paragraph 1 of Article 5 of this Law.

Article 10. The order of documentation maintenance by a collection agency

      1. The collection agency shall register in the registration journal of contracts all contracts concluded with creditors and maintain records of documents received from creditors:

      1) agreements on debt collection;

      2) contracts of assignment the right of claim, as well as documents attached to (if any);

      3) documents for pledge (in case the main obligation is secured by a pledge);

      4) contracts of guarantee and warranty (in case the main obligation is secured by a guarantee or warranty);

      5) calculation of debtor's debt on the date of assignment of rights (claims);

      6) documents containing information on measures taken by a creditor against the debtor to settle arrears stipulated by the laws of the Republic of Kazakhstan. The information is indicated for the period from the last date of default or improper performance of obligations under a bank loan agreement or a microcredit loan agreement before the transfer of a debt to a collection agency;

      7) copies of constituent documents of a debtor (for legal entities);

      8) copies of the identity document of a debtor (for individuals);

      9) documents (or their copies) confirming a debtor's repayment of debts;

      10) documents on a mortgaged property sale;

      11) other documents, the transfer of which is provided for by the contract on recovery of a debt and (or) by the contract of assignment of the right of claim.

      2. The maintenance of the register journal of contracts is carried out on paper or in electronic form.

Article 11. Secret of collection activities

      1. The secret of a collection activity includes any information about a debtor, a creditor, debt, third parties related to the obligations with the creditor under a bank loan agreement or a microcredit agreement, the terms of the concluded debt collection agreements and other information received and (or ) compiled by a collection agency when carrying out collection activities.

      2. The secret of collection activities with respect to a debtor can be disclosed only to a debtor, to the third person on the basis of written consent of a debtor, including the one given when signing a bank loan agreement for disclosure of a bank secret or microcredit contract for disclosing the secrecy of granting a microcredit, specified in paragraphs 3, 4 and 5 of this article.

      3. Information on a debtor, a creditor, a debt, the third parties, bound obligations with a creditor under the bank loan agreement or microcredit agreement, on the terms of concluded debt collection agreements and other information received and (or) compiled by a collection agency when implementing collection activities are issued to:

      1) state bodies and officials carrying out criminal prosecution functions: on criminal cases in their proceeding on the basis of a written request, sealed and authorized by the prosecutor;

      2) the courts: on the cases in their proceedings on the basis of determining, regulating, decision and sentence of the court;

      3) bodies of justice and private judicial executors: according to the cases of enforcement proceedings in their proceedings on the basis of a court executive's sanction, certified by the seal of the body of justice or by the seal of a private bailiff;

      4) to the prosecutor: on the basis of a resolution on the conduct of an audit within his competence on the material under his consideration;

      5) to state revenue bodies: on issues related to taxation of the inspected person, on the basis of prescription;

      6) representatives of the debtor: on the basis of a notarized power of attorney;

      7) the authorized body in the field of rehabilitation and bankruptcy: in respect of a person for whom there is a legally effective court decision on bankruptcy, for a period of five years before the institution of bankruptcy and (or) rehabilitation with the sanction of the prosecutor;

      8) the authorized body: on issues related to the implementation of state control over the activities of collection agencies.

      4. Information on a debtor, a creditor, the third parties, bound obligations with the creditor under the bank loan agreement or microcredit agreement, debt, on the terms of concluded debt collection agreements and other information received and (or) compiled by a collection agency when implementing the collection activities in relation to a debtor, in addition to the persons provided for in paragraph 3 of this article, are also issued on the basis of a written request:

      1) to persons indicated by a debtor in the will;

      2) to notaries: according to the hereditary cases in their proceedings on the basis of a written request of a notary certified by its seal (a copy of the death certificate must be attached to the notary's written request);

      3) to foreign consular institutions: according to the hereditary cases in their production.

      5. The provision of information to credit bureaus in accordance with the Law of the Republic of Kazakhstan "On Credit Bureaus and the Formation of Credit Histories in the Republic of Kazakhstan" by collector agencies and provision of information about a debtor in the part of debt by the credit bureaus is not a disclosure of collection activities secrecy.

      The secret of collection activity can be disclosed to a banking ombudsman on the petitions of individuals that are under consideration for settlement of disputes arising from the bank loan agreement or microcredit agreement, the obligations under which were assigned to the person specified in paragraphs 3 and 4 of article 36-1 of the Law Republic of Kazakhstan "On Banks and Banking Activities in the Republic of Kazakhstan" or in paragraphs 4 and 5 of Article 9-1 of the Law of the Republic of Kazakhstan "On Microfinance Organizations".

      6. For the disclosure or illegal use of information constituting a secret protected by the laws of the Republic of Kazakhstan, collection agencies, as well as other persons who have access to this information on the basis of this Law and other laws of the Republic of Kazakhstan, bear the responsibility established by the laws of the Republic of Kazakhstan.

Article 12. Requirements for employees of a collection agency

      1. The first head and members of the executive body (collegial and (or) sole executive body), the first head and members of the supervisory board (if any), the chief accountant are recognized as the management employees of a collection agency.

      2. The managing employee of a collection agency can not be an individual:

      1) who does not have the citizenship of the Republic of Kazakhstan;

      2) who does not have higher education;

      3) who has an unexpunged or unpaid conviction or who is being or has been subjected to criminal prosecution (with the exception of persons whose criminal prosecution was terminated on the basis of subparagraphs 1) and 2) of the first part of Article 35 of the Criminal Procedure Code of the Republic of Kazakhstan) for criminal offenses against the person, family and minors, constitutional and other rights and freedoms of man and citizen, the foundations of constitutional order and the state security, property, public security and public order, public health and morality, peace and security of mankind, the interests of service in commercial and other organizations, the interests of public service and public administration, justice and sentences enforcement, management procedures, in the areas of economic activity, information and communications , as well as military criminal offenses;

      4) who has no experience in the sections of financial, insurance, education, public administration and defense, compulsory social security, in the field of law and accounting, as well as the activities of collection agencies and credit bureaus defined in accordance with the general economic classifier activity, approved by the authorized body in the field of technical regulation (the relevant work experience must be at least one year before the date of employment);

      5)who was previously a manager or a person holding ten percent or more of shares in the authorized capital of a collection agency, in the period not more than one year before the decision of the authorized body to exclude the collection agency from the register of collection agencies on the reasons provided for in subparagraphs 1) , 2), 3), 4), 5), 6) and 7) part one of paragraph 1 of Article 9 of this Law;

      6) in respect of whom the court decision on the application of criminal punishment entered into legal force in the form of deprivation of the right to hold the position of a manager of a financial organization, a banking and (or) insurance holding, and to be a major participant (major shareholder) of a financial organization for life;

      7) who was previously a manager, a member of management body, a leader, a member of executive body, the chief accountant of a financial organization, a major participant - an individual, the head of a large participant, a bank and / or insurance holding - a legal entity of a financial organization in a period of not more than one year before the decision of the authorized body on the preservation of a financial institution or the compulsory redemption of its shares, deprivation of the license of a financial organization that caused its liquidation and / or termination of activities in the financial market, or the entry into legal force of a court decision on compulsory liquidation of a financial organization or its recognition as bankrupt in accordance with the procedure established by the legislation of the Republic of Kazakhstan.

      The specified requirement is applied within five years after the decision of the authorized body on the preservation of financial organization or the compulsory redemption of its shares, the deprivation of the license of financial organization that caused its liquidation and (or) the termination of activities in the financial market, or the entry into legal force of the court decision on forced liquidation of a financial organization or its recognition as a bankrupt in accordance with the procedure established by the legislation of the Republic of Kazakhstan;

      8) who was previously a manager, a member of management body, a manager, a member of executive body, the chief accountant of a financial organization, a major participant (major shareholder) - an individual, a leader, a member of the management body, a leader, a member of the executive body, the chief accountant of a large participant (major shareholder ) - an issuer legal entity that defaulted on the payment of coupon interest on issued emissive securities for four or more consecutive periods or amount of debt of which for payment of coupon interest on issued equity securities, for which was the default, is fourfold and (or) more than the size of the coupon interest, or the default amount for repayment of the principal debt on issued equity securities is ten thousand times higher than the monthly calculated index established by the law on the republican budget at the date of payment. The specified requirement is applied within five years from the moment of occurrence of the circumstances provided by this subparagraph;

      9) who is registered in the psychoneurological, tuberculosis, narcological dispensaries;

      10) who was dismissed from the civil service or from special and law enforcement agencies for negative reasons, if three years have not passed since the dismissal;

      11) who performed state control functions in the form of inspections of activities of this collection agency or related to the activities of this collection agency in accordance with its competence earlier by virtue of its official powers. The specified requirement is applied within one year after the termination of public service by the person;

      12) who was dismissed from the collection agency for violation of requirements provided for in Article 5 of this Law.

      3. Employees of the collection agency who do not meet the requirements provided for in subparagraphs 1) are not allowed to interact with a debtor and / or his/her representative, and (or) the third person who is bound by a creditor under a bank loan agreement or microcredit agreement provided for by subparagraphs 1), 3), 5), 9), 10), 11) and 12) of paragraph 2 of this article, as well as having no technical and vocational, post-secondary or higher education.

Article 13. Storage of documents

      The list of the main documents of a collection agency subject to storage, and the terms of their storage are determined by the authorized body.

Chapter 3. RIGHTS AND RESPONSIBILITIES OF A COLLECTION AGENCY, A DEBTOR AND (OR) HIS/HER REPRESENTATIVE Article 14. Collection agency rights

      A collection agency has the right:

      1) to carry out collection activities on the basis of a contract concluded with the creditor for collection of debts and in accordance with the requirements of this Law, the laws of the Republic of Kazakhstan "On Banks and Banking Activities in the Republic of Kazakhstan" and "On Microfinance Organizations";

      2) to collect information related to a debt, including obtaining documents (originals and copies), explanations and information from a creditor under the concluded debt collection agreements;

      3) to foreclose in court, unless otherwise provided by the laws of the Republic of Kazakhstan or the contract, to the pledged property that is secured by a bank loan agreement or a microcredit contract, the right (requirement) for which a collection agency purchased from a creditor;

      4) to refuse to implement the contract on recovery of debts in cases where the creditor violated the terms of a debt collection agreement, failed to provide documents (originals and copies), information about a debtor and his debts, submitted false data;

      5) to conclude a contract of assignment of the right of claim with a creditor under a bank loan agreement or a microcredit contract for which there is a delay in the performance of an obligation over ninety consecutive calendar days for a mortgage loan issued to an individual - over one hundred and eighty consecutive calendar days.

      It is not allowed to conclude a collection agency agreement on the assignment of the right of claim in respect of a debtor’s debt - an individual secured by a mortgage in the form of a home;

      6) to act as a representative of a creditor in the court and in the enforcement proceedings, subject to the appropriate authority;

      7) to request from the third parties information on a debtor previously provided by a debtor when concluding a bank loan agreement or a microcredit agreement, as well as information necessary for the performance of obligations by a debtor under the specified contracts, including those that make commercial secrets;

      8) to perform other rights established by this Law, other laws of the Republic of Kazakhstan and the contract on recovery of debts.

Article 15. Obligations of a collection agency

      1. The collection agency is obliged:

      1) to inform a creditor about the affiliation with a debtor, the reasons for such affiliation, as well as other circumstances that affect or may affect the performance of contractual obligations by the collection agency and / or may lead to a contradiction between the personal the interest of the collection agency and the legitimate interests of a creditor or to infringe upon the legitimate interests of a creditor, including as a result of direct or indirect interest of the collection agency in a debtor's failure to fulfill his/her obligations to a creditor within two working days;

      2) to notify the authorized body in written form and place the relevant information on its Internet resource in Kazakh and Russian languages within a period not later than three calendar days from the date of such changes in cases of changing the location or name,

      3) to keep a secret of collection activities;

      4) to provide free of charge in written form information on the balance of overdue and current amounts of the principal debt, remuneration, forfeit (fine, penalty) acquired rights (requirements) no more than once a month, upon the request of a debtor and (or) his/her representative within ten working days from the date of receipt of the request,

      5) to ensure the security of documents and information received from a creditor, a debtor and the third parties, the protection of personal data of a debtor and / or his/her representative, and (or) the third person bound with a creditor under a bank loan agreement or microcredit agreement, in accordance with the legislation of the Republic of Kazakhstan on personal data and their protection;

      6) to have own Internet resource;

      7) not to allow the collection of other commissions and payments not provided for in the agreement from a debtor when a creditor concedes the rights (claims) under the bank loan agreement or the microcredit contract;

      8) to comply with the requirements and restrictions imposed by the legislation of the Republic of Kazakhstan on the relationship between a creditor and a debtor under the bank loan agreement or the microcredit agreement, and also to such an agreement concluded between a previous creditor and a debtor when a creditor concedes the rights (claims) under the bank loan agreement or the microcredit agreement;

      9) to have specialized software used to automate activities and record debts, and to fix the process of interaction with a debtor by means of audio or video equipment in the premises of a collection agency (branch, representative office) at the place of its location;

      10) to conclude an agreement on provision of information with the state credit bureau;

      11) to submit reports to the authorized body in terms and in accordance with the procedure, as well as in the form established by the authorized body;

      12) to eliminate violations of the legislation of the Republic of Kazakhstan, identified by the authorized body;

      13) to notify the authorized body in written form about the changes made to the documents provided for by subparagraphs 3), 5) and 6) of paragraph 2 of Article 7 of this Law within fifteen working days;

      14) to record the process of interaction with a debtor by means of audio or video equipment in the premises of a collection agency (branch, representative office) at the place of its location and store audio and / or video recording materials within six months from the date of interaction with a debtor and (or) his/her representative;

      15) to provide to the authorized body on the basis of its request information, documents and materials of audio and / or video recordings (if any), including on complaints received from debtors and creditors;

      16) to ensure the availability of a branch or representative office at the place of residence or at the location or at the place of registration of a debtor or in administrative centers of regions where the settlement of place of residence or location or place of registration of a debtor is located when interacting with a debtor through personal meetings;

      17) to take measures to terminate the powers of an employee who violated the requirements of the mentioned article, in the case of interaction with the persons indicated in the first passage of paragraph 1 and in the first passage of paragraph 1 of paragraph 4 of Article 5 of this Law, even if the authorized body submits a demand for removal the specified employee, and also provide information about the dismissed employee to the authorized body within three working days from the date of dismissal;

      18) to provide with information on persons, individually or jointly with another (other) person (s) directly or indirectly owning and (or) using, and ( or) having control of ten or more percent of shares in the authorized capital of a collection agency on a monthly basis, not later than the tenth day of the month following the reporting month, in accordance with the procedure determined by the authorized body,

      19) to follow the rules for the implementation of collection activities provided for in Article 5 of this Law and other requirements established by this Law and other regulatory legal acts of the Republic of Kazakhstan.

      2. Collection agencies provide information and data about their activities, requested by the authorized body, in order to ensure state control over collection activities.

      Failure to provide, as well as repeated (two or more times during the twelve consecutive calendar months) untimely provision of information or provision of information that does not contain data required to be submitted in accordance with the legislation of the Republic of Kazakhstan on collection activities, or provision of inaccurate information, as well as failure to submit to the authorized body or submission of knowingly unreliable reports and information by the collection agency, entail liability provided for by the laws of the Republic of Kazakhstan.

      Footnote. Article 15 as amended by Law of the Republic of Kazakhstan No 122-VI as of 25.12.2017 (shall be enforced since 01.01.2018).

Article 16. Rights and obligations of a debtor and (or) his/her representative

      1. A debtor and (or) his/her representative shall have the right:

      1) to get information about the collection agency that performs pre-judicial recovery and settlement of a debt, its location, availability of his/her personal data, the size and structure of a debt from a creditor taking into account the requirements of the legislation of the Republic of Kazakhstan;

      2) to dispute the demands of a collection agency both fully and partly, including in the court;

      3) for pre-judicial settlement of a debt in accordance with Article 6 of this Law;

      4) to interact with a collection agency in any manner provided for in § 5 of this Law to obtain information about their debts;

      5) to apply to the authorized body with a complaint about the actions (inaction) of a collection agency;

      6) to apply to the state credit bureau and (or) to a creditor to receive a certificate on the absence of debts before a creditor with its full repayment;

      7) to fix independently the process of interaction with employees of a collection agency with the help of audio and (or) video equipment;

      8) to apply to a creditor with an application for changes in the terms of a bank loan agreement or microcredit agreement related to the performance of obligations under the specified contract, with a justification of the reasons for such apply;

      9) to have other rights stipulated by this Law and other laws of the Republic of Kazakhstan.

      2. A debtor and (or) his/her representative are obliged:

      1) to notify a collection agency of changes in their place of residence (legal address), change of name, patronymic (if it is indicated in the identity document), surname, replacement of identification documents (in case of expiration, loss), change of contact information used to communicate with them (him), and the manner of communication and interaction of the collection agency with them (him);

      2) at the request of a collection agency, disclose reliable information on the level of income and expenditure, place of residence (legal address), the availability of property for which, in accordance with the legislation of the Republic of Kazakhstan, a recovery may be made to repay the debt;

      3) to carry out cooperation on settlement of a debt with the collection agency in accordance with paragraph 1 of Article 5 of this Law;

      4) to consider the terms of debt repayment proposed by a creditor and to inform a collection agency or a creditor about the conditions suitable for a debtor within fifteen working days.

Chapter 4. STATE ADMINISTRATION OF COLLECTION AGENCIES, CONTROL OF THEIR ACTIVITIES Article 17. Competence of an authorized body

      1. State regulation and control over the activities of collection agencies are carried out by an authorized body in accordance with the laws of the Republic of Kazakhstan.

      2. The authorized body:

      1) conducts registration and maintains a register list of collection agencies;

      2) determines the list, forms, terms and procedure for reporting by a collection agency;

      3) exercises state control over the activities of a collection agency;

      4) examines a debtor's complaint against the actions (inaction) of a collection agency;

      5) claims to the court on reorganization or liquidation of legal entities in cases provided for by this Law;

      6) performs other powers provided for by this Law, other laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.

Article 18. Exposure measures and the reasons for their use

      1. If a collection agency violates the legislation of the Republic of Kazakhstan on collection activities, banking legislation of the Republic of Kazakhstan or the legislation of the Republic of Kazakhstan on microfinance organizations, identification of illegal actions or inaction of senior and other employees of a collection agency interacting with a debtor, measures of impact established by this article are apply by an authorized body. Impact measures are defined as limited measures of influence and sanctions.

      In case of violation of legislation of the Republic of Kazakhstan on credit bureaus and formation of credit histories, measures of impact envisaged by the Law of the Republic of Kazakhstan "On Credit Bureaus and the Formation of Credit Histories in the Republic of Kazakhstan" are applied to a collection agency.

      2. The authorized body has the right to apply the following limited measures to a collection agency:

      1) to send a mandatory written instruction to a collection agency for adoption of mandatory corrective measures aimed at eliminating the revealed violations and (or) causes, as well as the conditions that contributed to their commission, within the established period and (or) the need for submission plan of measures to eliminate identified violations and (or) causes within a specified period, as well as conditions that contributed to their commission (hereinafter - the plan of measures).

      The action plan submitted in time, established by a written instruction, specifies the description of violations and (or) reasons, as well as conditions that contributed to their commission, the list of planned activities, the terms of their implementation, as well as responsible officials.

      Appealing the written instruction of an authorized body to the court does not suspend its implementation;

      2) to issue a written warning on the possibility of applying sanctions to a collection agency provided for in paragraph 4 of this Article if the authorized body, within one year after issuing this warning, repeatedly violates the norms of legislation of the Republic of Kazakhstan on collection activities, banking legislation of the Republic of Kazakhstan or legislation of the Republic of Kazakhstan on microfinance organizations, similar to violation for which a written warning was issued;

      3) to draw up a written agreement between an authorized body and the collection agency on the need to immediately eliminate the violations identified and approve the list of measures to eliminate these violations, indicating the terms for their elimination and (or) the list of restrictions that a collection agency takes on itself, until the violations are rectified.

      The written agreement is subject to mandatory signing by a collection agency;

      4) to demand the removal of a senior employee or other employee of a collection agency interacting with a debtor.

      3. A collection agency is obliged to notify the authorized body on the execution of measures specified in written instruction and in written agreement, within the terms provided by these documents.

      If the period established for elimination of violation exceeds one month, a collection agency shall notify the authorized body on implementation of measures to eliminate the violations and (or) causes, as well as conditions that contributed to their fulfillment, on a monthly basis until the 20th of the month.

      The use of one limited measure of influence does not exclude the use of other limited measures of influence in cases provided for by the laws of the Republic of Kazakhstan, does not suspend or terminate previously taken measures.

      4. The authorized body may apply as sanctions:

      1) an exclusion of a collection agency from the register of collection agencies on the reasons and in the order provided for in subparagraphs 1), 2), 3), 4), 5), 6) and 7) of the first part of paragraph 1 of Article 9 of this Law;

      2) imposing on a collection agency and collecting a fine from it on the grounds established by the laws of the Republic of Kazakhstan.

      5. The decision of an authorized body on applying to a collection agency the measures of influence provided for in this article may be appealed at the court.

Article 19. State control over the activities of collection agencies

      The state control over the activity of collection agencies is carried out by an authorized body in the form of an audit, organization and conduct of which is determined by the Business Code of the Republic of Kazakhstan or in other forms of control and supervision in accordance with the Law of the Republic of Kazakhstan "On the National Bank of the Republic of Kazakhstan."

Chapter 5. FINAL AND TRANSITIONAL PROVISIONS Article 20. Responsibility for violation of legislation of the Republic of Kazakhstan on collection activities

      Violation of legislation of the Republic of Kazakhstan on collection activities entails responsibility established by the laws of the Republic of Kazakhstan.

Article 21. Transitional Provisions

      1. Organizations that prior to the enactment of this law carried out activities with signs of collection activities shall be subject to re-registration with judicial authorities as a collection agency within six months from the date of enactment of this Law.

      2. In case of non-compliance with the requirement specified in paragraph 1 of this article, organizations are subject to reorganization or compulsory liquidation in accordance with the laws of the Republic of Kazakhstan.

Article 22. Order of enactment of this Law

      This Law enters into force upon expiry of twenty one calendar days after the day of its first official publication.


The President


of the Republic of Kazakhstan

N. NAZARBAYEV



On collection activity

The Law of the Republic of Kazakhstan dated 6 May 2017 № 62-IV.

      Unofficial translation

      Note of the RCLI!
      See Article 22 of this Law for the enactment procedure.

      This Law regulates public relations related to the implementation of collection activities, establishes the peculiarities of creating and acting of collection agencies, and also determines the specifics of state regulation of collection agencies, control over their activities.

Chapter 1. GENERAL PROVISIONS 1. Basic concepts used in this Law

      The following basic concepts are used in this Law:

      1) a debt under the bank loan agreement or a microcredit agreement (hereinafter - debt) is the debtor's obligations to the creditor for payment of principal, remuneration, commissions, forfeits (fines, penalties) under a bank loan agreement or microcredit agreement;

      2) a debtor is an individual or a legal entity that has committed a failure to perform or improper performance of obligations under a bank loan agreement or a microcredit agreement;

      3) accounting registration is an inclusion of a legal entity that intends to carry out collection activities into the register of collection agencies;

      4) collection agency is a legal entity that is a commercial organization included in the register of collection agencies;

      5) register of collection agencies is a single list of collection agencies of the authorized body in the field of collection activity;

      6) collection activity is the activity of a collection agency aimed at pre-judicial collection and settlement of debts, as well as collection of information related to debt;

      7) an authorized body in the field of collection activity (hereinafter - the authorized body) is the National Bank of the Republic of Kazakhstan;

      8) the creditor is a second-tier bank, an organization that performs certain types of banking operations, or a microfinance organization that has the right to claim debtor’s debt.

Article 2. Legislation of the Republic of Kazakhstan on collection activity

      1. Legislation of the Republic of Kazakhstan on collection activity is based on the Constitution of the Republic of Kazakhstan, consists of Civil Code of the Republic of Kazakhstan, this Law and other normative legal acts of the Republic of Kazakhstan.

      2. The effect of the laws of the Republic of Kazakhstan "On business partnerships" and "On partnerships with limited and additional liability" extends to collection agencies in the part not regulated by this Law.

      3. If an international agreement ratified by the Republic of Kazakhstan establishes other rules than those contained in this Law, the rules of the international treaty shall apply.

Chapter 2. CREATION AND ACTIVITY OF A COLLECTION AGENCY Article 3. Collection agency

      1. A collection agency is created in an organizational and legal form of economic partnership.

      2. The name of a collection agency must contain the words "collection agency". Reduction of the name of the collection agency is not allowed.

      A legal entity that is not included in the register of collection agencies has no right to carry out collection activities, characterize itself as engaged in collection activities, and use in its name the words "collection agency", derived from them words that imply that it collects.

      3. No person can directly or indirectly together with other person (persons) own or (and) use and (or) dispose of ten or more percent of shares in the authorized capital of the collection agency or have control if it:

      1) did not disclose information about itself and individuals who directly or indirectly own and (or) use, and (or) dispose of more than twenty five percent of shares in the authorized capital or placed shares of the person named (excluding preferred and redeemed by the company) shares in the first paragraph of this paragraph, as well as on individuals exercising control over the mentioned person, an authorized body;

      2) is an individual who has an unpaid or outstanding previous conviction;

      3) is a legal entity, the founder (shareholder, participant) or a manager of which was previously the first director or founder (participant) of the collection agency in the period not more than one year before the decision of the authorized body to exclude this collection agency from the collection agencies list on the grounds provided for in subparagraphs 1), 2), 3), 4), 5), 6) and 7) of the first part of paragraph 1 of Article 9 of this Law.

      Notes.

      1. Indirect ownership and (or) use, and (or) disposal of shares in the authorized capital or placed shares of a legal entity (excluding privileged and redeemed by the company) for the purposes of this Law shall mean the ability to determine the decisions of a legal entity, person or persons who jointly own and (or) use, and (or) manage ten or more percent of shares in the authorized capital of a legal entity, by owning (voting) stocks (shares in the authorized capital) other legal entities.

      2. Control of a legal entity (control) for the purposes of this Law means the ability to determine the decisions made by a legal entity.

Article 4. Grounds for the implementation of collection activity

      1. Collection activity is carried out on the basis of a contract, the subject of which is the provision of services to the creditor for pre-trial recovery and settlement of debts, as well as for collection of information related to the debt (hereinafter referred to as the debt collection agreement).

      2. Collector activity is carried out in case of debt.

      3. The agreement on collection of debts between the collection agency and the creditor shall be concluded in written and shall contain the following conditions:

      1) the rights and obligations of the parties;

      2) responsibility of the parties;

      3) data of a debtor - an individual, allowing to identify his identity;

      4) name, location, business identification number with respect to the legal entity;

      5) amount of debt;

      6) the debt structure (the amount of the principal debt, remuneration, commissions, forfeits (fines, penalties);

      7) if there is information about the guarantor or warrantor under the bank loan agreement or the microcredit agreement;

      8) if there is information on the subject of the pledge, if the right of pledge under a bank loan agreement or a microcredit agreement is subject to registration;

      9) amount of remuneration under the contract;

      10) the term of the contract;

      11) the procedure and terms for notifying (informing) the creditor of the collection agency about payments made earlier by the debtor and (or) changing the amounts of the debt;

      12) the procedure for providing information to the collection agency on the progress of the performance of the debt collection agreement;

      13) the procedure and terms for termination of the contract for recovery of debts in the case provided for in the passage 4 of part 1, paragraph 5 of Article 9 of this Law, as well as the procedure and terms for the return of documents;

      14) the procedure and conditions for the early termination of collection activities with respect to the debtor.

      The debt collection agreement can be concluded in relation to one or more debtors with the transfer of the register (registers) of debtors in paper form or in electronic form, which (should) contain the information specified in part 1of this paragraph.

      The list of documents and information on the debtor related to the performance of the debt collection agreement, information on measures taken by the creditor regarding the debtor for the settlement of arrears stipulated by the laws of the Republic of Kazakhstan, are also attached to the debt collection agreement. The information is indicated for the period from the last date of default or improper performance of obligations under a bank loan agreement or a microcredit loan agreement before the transfer of the debt to the collection agency.

      The term of rendering services on collection activities with respect to debt under a contract for the collection of arrears must be at least six months and not more than five years.

      Early termination of collection activities with respect to the debtor is allowed in cases provided for by this Law or a contract for recovery of debts.

      Debt transferred to the collection agency under the agreement on debt collection can not be transferred to another collection agency.

      On issues not regulated by this Law, the provisions of the Civil Code of the Republic of Kazakhstan on commissioning and provision of paid services are applied to the contract on recovery of debts.

      4. It is not allowed to carry out collection activities with respect to the debtor - an individual whose debt is secured by a mortgage in the form of a home.

Article 5. Rules for the implementation of collection activity

      1. The collection agency has the right to interact with the debtor and (or) his/her representative, and (or) a third person connected with the lender in the framework of a bank loan agreement or a microcredit contract, by:

      1) telephone conversations;

      2) personal meetings;

      3) written (post) messages sent to a debtor - an individual at the place of residence (legal address), to a debtor - a legal entity at the place of location (actual address);

      4) text, voice and other messages by cellular communication;

      5) via the Internet.

      2. The interaction of a collection agency with a debtor and (or) his/her representative, and (or) a third person, related with obligations to a creditor under the bank loan agreement or microcredit agreement, should be carried out:

      1) at the primary contact with the message about:

      the name of the collection agency and the number of registration in the register of collection agencies;

      location of the collection agency;

      surname, name, patronymic (if it is indicated in the identity document) and the position of a person who interacts with the debtor;

      the name of a creditor;

      transfer of a debt to the collection agency by the creditor;

      the structure of a debt, the balance of overdue and current principal amounts, remuneration, commissions, forfeits (fines, penalties) stipulated in the bank loan agreement or microcredit agreement;

      responsibilities and other obligations of a debtor provided for in the bank loan agreement or microcredit agreement, laws of the Republic of Kazakhstan, as well as the consequences of non-fulfillment or improper performance of obligations stipulated in the bank loan agreement or microcredit agreement.

      Other information that is not provided for in this subparagraph and which is not a commercial or other secret protected by the laws of the Republic of Kazakhstan shall be notified to a debtor only at his/her request;

      2) during the period from 8.00a.m. to 21.00 p.m. on weekdays by the time of place of residence or location of a debtor or the place of registration of a debtor if the other period of interaction from the period of time specified by the collection agency within the time period specified in this subparagraph is not determined by a debtor at personal appeal to the collection agency;

      3) no more than three times a week and no more than once in the period from 8.00a.m. to 21.00 p.m. on weekdays with personal contact on the initiative of a collection agency at the place of residence or location or place of registration of a debtor or in the premises of a collection agency (branch, representative office) at the place of its location;

      4) no more than three times in the period from 8.00a.m. to 21.00 p.m. on weekdays by means of telephone negotiations initiated by a collection agency;

      5) by providing, at the request of a debtor, information and copies of documents confirming the authority of a collection agency to implement collection activities with respect to the debt, with the exception of information relating to commercial or other secrets protected by the laws of the Republic of Kazakhstan;

      6) fixing the process of interaction with the help of audio or video equipment in the premises of a collection agency (branch, representative office) at the place of its location;

      7) ensuring the security of documents and information received from a creditor, a debtor and / or his/her representative, and (or) third parties, including bank secret, the secret of providing microcredit, commercial or other secrets protected by the laws of the Republic of Kazakhstan, personal data of a debtor and (or) his/her representative, and (or) third parties.

      The requirements stipulated in subparagraphs 2), 3) and 4) of the first part of this paragraph shall not apply to the interaction of a collection agency with a debtor and / or his/her representative violating (breaching) obligations stipulated by paragraph 2 of Article 16 of this Law.

      Note. For the purposes of this item, weekdays are days of the week from Monday to Friday, which are not weekend or holiday (national and state holidays).

      3. In case of initial contact, a collection agency shall also inform a debtor-individual and / or his/her representative about their (his) right to apply to a collection agency with a written application containing information on the reasons for the arrears, incomes and other confirmed circumstances (facts) that stipulate their (his) petition for changing the terms of a bank loan agreement or microcredit agreement.

      4. When interacting with any individual who is not a person specified in the passage 1, paragraph 1 of this article, the collection agency shall provide the following information:

      the name of a collection agency and the number of registration in the register of collection agencies;

      surname, name, patronymic (if it is specified in the document proving the identity) and a position of a collection agency employee.

      The interaction of a collection agency with an individual specified in part one of this paragraph shall be carried out subject to the requirements specified in subparagraphs 2), 3), 4), 6) and 7) of the first part of paragraph 2 of this article, and also if this person does not express disagreement on the interaction with a collection agency, including orally.

      5. When interacting with a debtor and (or) his/her representative and (or) a third person, a collection agency is prohibited from carrying out the following unfair actions:

      1) to use other methods of interaction with a debtor and (or) his/her representative, and (or) a third person, not provided for by paragraph 1 of this article;

      2) to violate the requirements provided for in paragraph 2 of this article;

      3) to disseminate information discrediting honor, dignity and business reputation of a person a collection agency interacts with, or disclose information that may cause property damage to the interests of these persons;

      4) to commit illegal acts that infringe upon the rights and freedom of a person whom a collection agency interacts with, threatening their lives and health, and also entailing the infliction of property and other harm to that person;

      5) to exert pressure by threatening to use violence or destroying or damaging the property of a debtor and / or his/her representative and (or) third parties, insulting, fraudulent, forgery of documents, blackmail, forcing a debtor to fulfill obligations under the bank loan agreement or the contract for providing microcredit;

      6) to introduce a person whom a collection agency interacts in error regarding the size, nature and grounds for the occurrence of indebtedness;

      7) accept money (in cash or non-cash form), as well as other property to repay the debt;

      8) demand repayment of the debt with other property, other than money;

      9) disclose a commercial or other secret protected by the laws of the Republic of Kazakhstan received from a creditor and (or) his/her representative and (or) third parties, with the exception of cases provided for by the laws of the Republic of Kazakhstan.

      6. The collection agency, independently or at the request of an authorized body, is obliged to take measures to terminate the authority of an employee to interact with the persons specified in the first passage of paragraph 1 and the first passage, part 1 of paragraph 4 of this article if the norms of this article are violated and provide information to an authorized body within three working days.

      7. The requirements of paragraphs 1, 2, 4, subparagraphs 1), 2), 3), 4), 5), 6) and 9) of paragraph 5 and paragraph 6 of this article apply to a collection agency when exercising its creditor rights arising as a result of the assignment of a right (claim) under a bank loan agreement or a microcredit contract.

Article 6. Peculiarities of pre-judicial settlement of debt

      1. In order to realize the right provided for in paragraph 3 of Article 5 of this Law, a debtor - an individual and (or) his/her representative shall apply to a collection agency with a written application for terms change of a bank loan agreement or microcredit agreement within 30 calendar days after the date of their (his) notification by a collection agency. The written application disclose information on the reasons for the occurrence of debts, other confirmed facts (facts), which determine its request for the terms change of a bank loan agreement or microcredit agreement, as well as reliable information about education, income and expenditure level, family members, place of residence, availability of property, other information necessary for a creditor to consider a written application and determine the sufficiency of a debtor’s own resources to perform the obligations under a bank loan agreement or a microcredit contract.

      2. A collection agency, within ten calendar days after the day of receipt of a written application, shall send it to the creditor.

      3. A creditor, within fifteen calendar days after the day of receipt of a written application of a debtor, shall consider the proposed conditions for changing the bank loan contract or the microcredit agreement and inform the collection agency in written form about:

      1) agreement with the proposed changes to a bank loan agreement or microcredit agreement;

      2) its proposals for changing the terms of a bank loan agreement or microcredit agreement;

      3) refusal to change the terms of a bank loan agreement or microcredit agreement, indicating a reasoned justification for such a refusal.

      4. The collection agency, within ten calendar days after receiving the decision taken by a creditor, shall inform a debtor about it.

      5. During the period of collection activities with respect to the debtor, a creditor is not entitled:

      to claim to the court to recover his debts;

      to demand the payment of remuneration accrued during the period when the debt is in the work of a collection agency, and also to impose a forfeit (fine, penalty) for the late payment of a principal debt and compensation.

      6. The actions (inaction) of a creditor or a collection agency on the issue of pre-judicial settlement of a debt provided for in this article may be appealed by a debtor and (or) his/her representative to the authorized body.

Article 7. Registration of a legal entity that intends to carry out collection activity

      1. A legal entity that intends to carry out collection activities shall be subject to registration within three months from the date of its state registration (re-registration) with the judicial authorities.

      2. For the passage of registration, a legal entity that intends to carry out collection activities shall submit to the authorized body:

      1) an application form;

      2) provision on the internal control service (if any);

      3) information on founders (participants), as well as senior officials as of the date preceding the date of submission of an application;

      4) a copy of an agreement on provision of information, concluded in accordance with the Law of the Republic of Kazakhstan "On Credit Bureaus and Formation of Credit Histories in the Republic of Kazakhstan", and a copy of the document on compliance with the requirements for participants in the system of forming credit histories and their use;

      5) information on employees who will interact with debtors and (or) their representatives, and (or) third parties, bound obligations with the creditor under a bank loan agreement or a microcredit agreement;

      6) information on branches and (or) representative offices.

      3. The documents specified in paragraph 2 of this article shall be submitted by a legal entity that intends to carry out collection activities, on paper or in electronic form in accordance with the rules for passing the accounting registration and maintaining the register of collection agencies approved by the authorized body.

      4. The authorized body shall check the completeness of the submitted documents within two working days from the receipt of documents for the passage of registration.

      In case that a legal entity that intends to carry out collection activities has an incomplete set of documents, the authorized body shall give a reasoned refusal in written form to further consideration of an application in the terms specified in part one of this paragraph.

      5. The authorized body shall consider an application for the passage of registration within fifteen working days from the date of submission of the full package of documents.

      6. Within the period established by paragraph 5 of this article, the authorized body is obliged to enter a legal entity that intends to carry out collection activities in the register of collection agencies and notify him of this decision and registration number or give a reasoned response in written form on the reasons for the refusal of an account registration.

      7. The register of collection agencies that have passed the registration is placed on the Internet resource of the authorized body.

Article 8. Reasons for refusal in the registration of a legal entity that intends to carry out collection activities

      1. The refusal to register a legal entity that intends to carry out collection activities shall be given in the following cases:

      1) providing false data and information subject to disclosure in the documents specified in paragraph 2 of Article 7 of this Law;

      2) inconsistencies between employees of a legal entity that intends to carry out collection activities to the requirements provided for in paragraphs 2 and 3 of Article 12 of this Law;

      3) inconsistencies of a person, who alone or jointly with another (other) person (s) directly or indirectly owning and (or) using, and (or) managing ten or more percent of shares in the authorized capital of a legal entity intending to carry out collection activities; having the control, to the requirements stipulated by paragraph 3 of Article 3 of this Law;

      4) appeals after the expiration of three months from the date of state registration (re-registration) in the bodies of justice to the authorized body with an application for registration;

      5) non-compliance with the requirement established by paragraph 1 of Article 21 of this Law.

      2. In case of refusal to register by the reasons provided for in subparagraphs 1), 2) and 3) of paragraph 1 of this article, a legal entity that intends to carry out collection activities within thirty working days after the day of receipt of the refusal on registration has the right to re-submit documents in accordance with paragraph 2 of Article 7 of this Law or is obliged to conduct the procedure of re-registration by deleting from its name the words "collection agency", derived words from them, suggesting that it performs collection activity.

      If a legal entity that intends to carry out collection activities receives refusal for registration on the reasons provided for in subparagraphs 4) and 5) of paragraph 1 of this article, such a legal entity is obliged to conduct the procedure of re-registration by deleting from its name the words "collection agency", derivatives from these words, suggesting that it performs collection activities.

      If a legal entity fails to perform the actions specified in parts one and two of this paragraph, it is subject to compulsory liquidation in accordance with the procedure established by the laws of the Republic of Kazakhstan.

Article 9. Reasons for excluding a collection agency from the register of collection agencies

      1. The collection agency is excluded from the register of collection agencies in the following cases:

      1) committing one of the unfair actions provided for by subparagraphs 3), 4), 5), 7) and 8) of paragraph 5 of Article 5 of this Law, more than three times during six consecutive calendar months;

      2) failure to submit a report by a collection agency in due time, the submission of which is required in accordance with regulatory legal acts of the authorized body, committed more than three times during the twelve consecutive calendar months;

      3) failure to provide, untimely provision with information the authorized body by a collection agency in accordance with the legislation of the Republic of Kazakhstan on collection activities or providing the authorized body with the information that does not contain information required to be submitted in accordance with the legislation of the Republic of Kazakhstan on collection activities, or any other requested information, or provision of inaccurate information, committed by a collection agency for more than three times during the twelve consecutive calendar months;

      4) non-fulfillment, untimely performance of obligations by a collection agency assumed by it and (or) assigned to it by an authorized body through the application of limited measures of influence committed by a collection agency more than three times during the twelve consecutive calendar months;

      5) failure to perform collection activities within twelve consecutive calendar months from the date of inclusion in the register of collection agencies;

      6) entry into legal force of the court decision on termination of the collection agency;

      7) obstruction to conduct verification three or more times during the last twelve calendar months by a collection agency;

      8) collection agency's decision to voluntarily stop collection activities.

      In case provided for in subparagraph 8) of the first part of this paragraph, a letter on confirmation of fulfillment of all obligations, as well as an absence of previously acquired rights (claims) on the balance sheet, is attached to the application of a collection agency on exclusion from the register of collection agencies.

      2. In case of exclusion from the register of collection agencies, the authorized body shall notify the collection agency in written form within seven calendar days from the date of exclusion.

      The notification is sent to the address indicated in the application for registration or in the written notification of the change in the location of a collection agency.

      3. The decision of an authorized body to exclude the collection agency from the register of collection agencies can be appealed to the court.

      Appealing the decision of an authorized body to exclude the collection agency from the register of collection agencies does not suspend execution of this decision.

      4. The collection agency is prohibited to make new contracts for collection of debts and (or) contracts containing the conditions for the transfer of rights (claims) under bank loan agreements or microcredit contracts to the collection agency (hereinafter referred to as the assignment contract) from the moment of receiving notification from an authorized body on its exclusion from the register of collection agencies.

      5. The collection agency within thirty calendar days after the day of receipt of notification of an authorized body on exclusion of it from the register of collection agencies or adoption by a collection agency of decision on voluntary termination of collection activity is obliged:

      to carry out the procedure of re-registration by deleting from its name the words "collection agency", derived words from them, suggesting that it performs collection activities;

      to transfer to the creditor all information and documents on the debt that was transferred to a collection agency on the basis of the debt collection agreement, as of the date of receipt of notification on exclusion of it from the register of collection agencies from an authorized body or the collection agency's decision to voluntarily stop collection activities;

      terminate all concluded agreements on recovery of debts.

      The creditor is obliged to ensure the receipt of information and documents on debts, which was transferred to a collection agency on the basis of an agreement on collection of debts, and to take measures to terminate previously concluded agreements with a collection agency on collection of debts.

      In case of failure to perform the actions specified in part one of this paragraph, a collection agency shall be subject to compulsory liquidation in accordance with the procedure established by the laws of the Republic of Kazakhstan.

      6. The collection agency is obliged to notify about it within five calendar days from the date of receipt of notification from an authorized body about its exclusion from the register of collection agencies:

      creditors with whom agreements on collection of debts were concluded;

      debtors whose debts were transferred to a collection agency on the basis of a contract for collection of debts, in the ways provided for in paragraph 1 of Article 5 of this Law.

Article 10. The order of documentation maintenance by a collection agency

      1. The collection agency shall register in the registration journal of contracts all contracts concluded with creditors and maintain records of documents received from creditors:

      1) agreements on debt collection;

      2) contracts of assignment the right of claim, as well as documents attached to (if any);

      3) documents for pledge (in case the main obligation is secured by a pledge);

      4) contracts of guarantee and warranty (in case the main obligation is secured by a guarantee or warranty);

      5) calculation of debtor's debt on the date of assignment of rights (claims);

      6) documents containing information on measures taken by a creditor against the debtor to settle arrears stipulated by the laws of the Republic of Kazakhstan. The information is indicated for the period from the last date of default or improper performance of obligations under a bank loan agreement or a microcredit loan agreement before the transfer of a debt to a collection agency;

      7) copies of constituent documents of a debtor (for legal entities);

      8) copies of the identity document of a debtor (for individuals);

      9) documents (or their copies) confirming a debtor's repayment of debts;

      10) documents on a mortgaged property sale;

      11) other documents, the transfer of which is provided for by the contract on recovery of a debt and (or) by the contract of assignment of the right of claim.

      2. The maintenance of the register journal of contracts is carried out on paper or in electronic form.

Article 11. Secret of collection activities

      1. The secret of a collection activity includes any information about a debtor, a creditor, debt, third parties related to the obligations with the creditor under a bank loan agreement or a microcredit agreement, the terms of the concluded debt collection agreements and other information received and (or ) compiled by a collection agency when carrying out collection activities.

      2. The secret of collection activities with respect to a debtor can be disclosed only to a debtor, to the third person on the basis of written consent of a debtor, including the one given when signing a bank loan agreement for disclosure of a bank secret or microcredit contract for disclosing the secrecy of granting a microcredit, specified in paragraphs 3, 4 and 5 of this article.

      3. Information on a debtor, a creditor, a debt, the third parties, bound obligations with a creditor under the bank loan agreement or microcredit agreement, on the terms of concluded debt collection agreements and other information received and (or) compiled by a collection agency when implementing collection activities are issued to:

      1) state bodies and officials carrying out criminal prosecution functions: on criminal cases in their proceeding on the basis of a written request, sealed and authorized by the prosecutor;

      2) the courts: on the cases in their proceedings on the basis of determining, regulating, decision and sentence of the court;

      3) bodies of justice and private judicial executors: according to the cases of enforcement proceedings in their proceedings on the basis of a court executive's sanction, certified by the seal of the body of justice or by the seal of a private bailiff;

      4) to the prosecutor: on the basis of a resolution on the conduct of an audit within his competence on the material under his consideration;

      5) to state revenue bodies: on issues related to taxation of the inspected person, on the basis of prescription;

      6) representatives of the debtor: on the basis of a notarized power of attorney;

      7) the authorized body in the field of rehabilitation and bankruptcy: in respect of a person for whom there is a legally effective court decision on bankruptcy, for a period of five years before the institution of bankruptcy and (or) rehabilitation with the sanction of the prosecutor;

      8) the authorized body: on issues related to the implementation of state control over the activities of collection agencies.

      4. Information on a debtor, a creditor, the third parties, bound obligations with the creditor under the bank loan agreement or microcredit agreement, debt, on the terms of concluded debt collection agreements and other information received and (or) compiled by a collection agency when implementing the collection activities in relation to a debtor, in addition to the persons provided for in paragraph 3 of this article, are also issued on the basis of a written request:

      1) to persons indicated by a debtor in the will;

      2) to notaries: according to the hereditary cases in their proceedings on the basis of a written request of a notary certified by its seal (a copy of the death certificate must be attached to the notary's written request);

      3) to foreign consular institutions: according to the hereditary cases in their production.

      5. The provision of information to credit bureaus in accordance with the Law of the Republic of Kazakhstan "On Credit Bureaus and the Formation of Credit Histories in the Republic of Kazakhstan" by collector agencies and provision of information about a debtor in the part of debt by the credit bureaus is not a disclosure of collection activities secrecy.

      The secret of collection activity can be disclosed to a banking ombudsman on the petitions of individuals that are under consideration for settlement of disputes arising from the bank loan agreement or microcredit agreement, the obligations under which were assigned to the person specified in paragraphs 3 and 4 of article 36-1 of the Law Republic of Kazakhstan "On Banks and Banking Activities in the Republic of Kazakhstan" or in paragraphs 4 and 5 of Article 9-1 of the Law of the Republic of Kazakhstan "On Microfinance Organizations".

      6. For the disclosure or illegal use of information constituting a secret protected by the laws of the Republic of Kazakhstan, collection agencies, as well as other persons who have access to this information on the basis of this Law and other laws of the Republic of Kazakhstan, bear the responsibility established by the laws of the Republic of Kazakhstan.

Article 12. Requirements for employees of a collection agency

      1. The first head and members of the executive body (collegial and (or) sole executive body), the first head and members of the supervisory board (if any), the chief accountant are recognized as the management employees of a collection agency.

      2. The managing employee of a collection agency can not be an individual:

      1) who does not have the citizenship of the Republic of Kazakhstan;

      2) who does not have higher education;

      3) who has an unexpunged or unpaid conviction or who is being or has been subjected to criminal prosecution (with the exception of persons whose criminal prosecution was terminated on the basis of subparagraphs 1) and 2) of the first part of Article 35 of the Criminal Procedure Code of the Republic of Kazakhstan) for criminal offenses against the person, family and minors, constitutional and other rights and freedoms of man and citizen, the foundations of constitutional order and the state security, property, public security and public order, public health and morality, peace and security of mankind, the interests of service in commercial and other organizations, the interests of public service and public administration, justice and sentences enforcement, management procedures, in the areas of economic activity, information and communications , as well as military criminal offenses;

      4) who has no experience in the sections of financial, insurance, education, public administration and defense, compulsory social security, in the field of law and accounting, as well as the activities of collection agencies and credit bureaus defined in accordance with the general economic classifier activity, approved by the authorized body in the field of technical regulation (the relevant work experience must be at least one year before the date of employment);

      5)who was previously a manager or a person holding ten percent or more of shares in the authorized capital of a collection agency, in the period not more than one year before the decision of the authorized body to exclude the collection agency from the register of collection agencies on the reasons provided for in subparagraphs 1) , 2), 3), 4), 5), 6) and 7) part one of paragraph 1 of Article 9 of this Law;

      6) in respect of whom the court decision on the application of criminal punishment entered into legal force in the form of deprivation of the right to hold the position of a manager of a financial organization, a banking and (or) insurance holding, and to be a major participant (major shareholder) of a financial organization for life;

      7) who was previously a manager, a member of management body, a leader, a member of executive body, the chief accountant of a financial organization, a major participant - an individual, the head of a large participant, a bank and / or insurance holding - a legal entity of a financial organization in a period of not more than one year before the decision of the authorized body on the preservation of a financial institution or the compulsory redemption of its shares, deprivation of the license of a financial organization that caused its liquidation and / or termination of activities in the financial market, or the entry into legal force of a court decision on compulsory liquidation of a financial organization or its recognition as bankrupt in accordance with the procedure established by the legislation of the Republic of Kazakhstan.

      The specified requirement is applied within five years after the decision of the authorized body on the preservation of financial organization or the compulsory redemption of its shares, the deprivation of the license of financial organization that caused its liquidation and (or) the termination of activities in the financial market, or the entry into legal force of the court decision on forced liquidation of a financial organization or its recognition as a bankrupt in accordance with the procedure established by the legislation of the Republic of Kazakhstan;

      8) who was previously a manager, a member of management body, a manager, a member of executive body, the chief accountant of a financial organization, a major participant (major shareholder) - an individual, a leader, a member of the management body, a leader, a member of the executive body, the chief accountant of a large participant (major shareholder ) - an issuer legal entity that defaulted on the payment of coupon interest on issued emissive securities for four or more consecutive periods or amount of debt of which for payment of coupon interest on issued equity securities, for which was the default, is fourfold and (or) more than the size of the coupon interest, or the default amount for repayment of the principal debt on issued equity securities is ten thousand times higher than the monthly calculated index established by the law on the republican budget at the date of payment. The specified requirement is applied within five years from the moment of occurrence of the circumstances provided by this subparagraph;

      9) who is registered in the psychoneurological, tuberculosis, narcological dispensaries;

      10) who was dismissed from the civil service or from special and law enforcement agencies for negative reasons, if three years have not passed since the dismissal;

      11) who performed state control functions in the form of inspections of activities of this collection agency or related to the activities of this collection agency in accordance with its competence earlier by virtue of its official powers. The specified requirement is applied within one year after the termination of public service by the person;

      12) who was dismissed from the collection agency for violation of requirements provided for in Article 5 of this Law.

      3. Employees of the collection agency who do not meet the requirements provided for in subparagraphs 1) are not allowed to interact with a debtor and / or his/her representative, and (or) the third person who is bound by a creditor under a bank loan agreement or microcredit agreement provided for by subparagraphs 1), 3), 5), 9), 10), 11) and 12) of paragraph 2 of this article, as well as having no technical and vocational, post-secondary or higher education.

Article 13. Storage of documents

      The list of the main documents of a collection agency subject to storage, and the terms of their storage are determined by the authorized body.

Chapter 3. RIGHTS AND RESPONSIBILITIES OF A COLLECTION AGENCY, A DEBTOR AND (OR) HIS/HER REPRESENTATIVE Article 14. Collection agency rights

      A collection agency has the right:

      1) to carry out collection activities on the basis of a contract concluded with the creditor for collection of debts and in accordance with the requirements of this Law, the laws of the Republic of Kazakhstan "On Banks and Banking Activities in the Republic of Kazakhstan" and "On Microfinance Organizations";

      2) to collect information related to a debt, including obtaining documents (originals and copies), explanations and information from a creditor under the concluded debt collection agreements;

      3) to foreclose in court, unless otherwise provided by the laws of the Republic of Kazakhstan or the contract, to the pledged property that is secured by a bank loan agreement or a microcredit contract, the right (requirement) for which a collection agency purchased from a creditor;

      4) to refuse to implement the contract on recovery of debts in cases where the creditor violated the terms of a debt collection agreement, failed to provide documents (originals and copies), information about a debtor and his debts, submitted false data;

      5) to conclude a contract of assignment of the right of claim with a creditor under a bank loan agreement or a microcredit contract for which there is a delay in the performance of an obligation over ninety consecutive calendar days for a mortgage loan issued to an individual - over one hundred and eighty consecutive calendar days.

      It is not allowed to conclude a collection agency agreement on the assignment of the right of claim in respect of a debtor’s debt - an individual secured by a mortgage in the form of a home;

      6) to act as a representative of a creditor in the court and in the enforcement proceedings, subject to the appropriate authority;

      7) to request from the third parties information on a debtor previously provided by a debtor when concluding a bank loan agreement or a microcredit agreement, as well as information necessary for the performance of obligations by a debtor under the specified contracts, including those that make commercial secrets;

      8) to perform other rights established by this Law, other laws of the Republic of Kazakhstan and the contract on recovery of debts.

Article 15. Obligations of a collection agency

      1. The collection agency is obliged:

      1) to inform a creditor about the affiliation with a debtor, the reasons for such affiliation, as well as other circumstances that affect or may affect the performance of contractual obligations by the collection agency and / or may lead to a contradiction between the personal the interest of the collection agency and the legitimate interests of a creditor or to infringe upon the legitimate interests of a creditor, including as a result of direct or indirect interest of the collection agency in a debtor's failure to fulfill his/her obligations to a creditor within two working days;

      2) to notify the authorized body in written form and place the relevant information on its Internet resource in Kazakh and Russian languages within a period not later than three calendar days from the date of such changes in cases of changing the location or name,

      3) to keep a secret of collection activities;

      4) to provide free of charge in written form information on the balance of overdue and current amounts of the principal debt, remuneration, forfeit (fine, penalty) acquired rights (requirements) no more than once a month, upon the request of a debtor and (or) his/her representative within ten working days from the date of receipt of the request,

      5) to ensure the security of documents and information received from a creditor, a debtor and the third parties, the protection of personal data of a debtor and / or his/her representative, and (or) the third person bound with a creditor under a bank loan agreement or microcredit agreement, in accordance with the legislation of the Republic of Kazakhstan on personal data and their protection;

      6) to have own Internet resource;

      7) not to allow the collection of other commissions and payments not provided for in the agreement from a debtor when a creditor concedes the rights (claims) under the bank loan agreement or the microcredit contract;

      8) to comply with the requirements and restrictions imposed by the legislation of the Republic of Kazakhstan on the relationship between a creditor and a debtor under the bank loan agreement or the microcredit agreement, and also to such an agreement concluded between a previous creditor and a debtor when a creditor concedes the rights (claims) under the bank loan agreement or the microcredit agreement;

      9) to have specialized software used to automate activities and record debts, and to fix the process of interaction with a debtor by means of audio or video equipment in the premises of a collection agency (branch, representative office) at the place of its location;

      10) to conclude an agreement on provision of information with the state credit bureau;

      11) to submit reports to the authorized body in terms and in accordance with the procedure, as well as in the form established by the authorized body;

      12) to eliminate violations of the legislation of the Republic of Kazakhstan, identified by the authorized body;

      13) to notify the authorized body in written form about the changes made to the documents provided for by subparagraphs 3), 5) and 6) of paragraph 2 of Article 7 of this Law within fifteen working days;

      14) to record the process of interaction with a debtor by means of audio or video equipment in the premises of a collection agency (branch, representative office) at the place of its location and store audio and / or video recording materials within six months from the date of interaction with a debtor and (or) his/her representative;

      15) to provide to the authorized body on the basis of its request information, documents and materials of audio and / or video recordings (if any), including on complaints received from debtors and creditors;

      16) to ensure the availability of a branch or representative office at the place of residence or at the location or at the place of registration of a debtor or in administrative centers of regions where the settlement of place of residence or location or place of registration of a debtor is located when interacting with a debtor through personal meetings;

      17) to take measures to terminate the powers of an employee who violated the requirements of the mentioned article, in the case of interaction with the persons indicated in the first passage of paragraph 1 and in the first passage of paragraph 1 of paragraph 4 of Article 5 of this Law, even if the authorized body submits a demand for removal the specified employee, and also provide information about the dismissed employee to the authorized body within three working days from the date of dismissal;

      18) to provide with information on persons, individually or jointly with another (other) person (s) directly or indirectly owning and (or) using, and ( or) having control of ten or more percent of shares in the authorized capital of a collection agency on a monthly basis, not later than the tenth day of the month following the reporting month, in accordance with the procedure determined by the authorized body,

      19) to follow the rules for the implementation of collection activities provided for in Article 5 of this Law and other requirements established by this Law and other regulatory legal acts of the Republic of Kazakhstan.

      2. Collection agencies provide information and data about their activities, requested by the authorized body, in order to ensure state control over collection activities.

      Failure to provide, as well as repeated (two or more times during the twelve consecutive calendar months) untimely provision of information or provision of information that does not contain data required to be submitted in accordance with the legislation of the Republic of Kazakhstan on collection activities, or provision of inaccurate information, as well as failure to submit to the authorized body or submission of knowingly unreliable reports and information by the collection agency, entail liability provided for by the laws of the Republic of Kazakhstan.

      Footnote. Article 15 as amended by Law of the Republic of Kazakhstan No 122-VI as of 25.12.2017 (shall be enforced since 01.01.2018).

Article 16. Rights and obligations of a debtor and (or) his/her representative

      1. A debtor and (or) his/her representative shall have the right:

      1) to get information about the collection agency that performs pre-judicial recovery and settlement of a debt, its location, availability of his/her personal data, the size and structure of a debt from a creditor taking into account the requirements of the legislation of the Republic of Kazakhstan;

      2) to dispute the demands of a collection agency both fully and partly, including in the court;

      3) for pre-judicial settlement of a debt in accordance with Article 6 of this Law;

      4) to interact with a collection agency in any manner provided for in § 5 of this Law to obtain information about their debts;

      5) to apply to the authorized body with a complaint about the actions (inaction) of a collection agency;

      6) to apply to the state credit bureau and (or) to a creditor to receive a certificate on the absence of debts before a creditor with its full repayment;

      7) to fix independently the process of interaction with employees of a collection agency with the help of audio and (or) video equipment;

      8) to apply to a creditor with an application for changes in the terms of a bank loan agreement or microcredit agreement related to the performance of obligations under the specified contract, with a justification of the reasons for such apply;

      9) to have other rights stipulated by this Law and other laws of the Republic of Kazakhstan.

      2. A debtor and (or) his/her representative are obliged:

      1) to notify a collection agency of changes in their place of residence (legal address), change of name, patronymic (if it is indicated in the identity document), surname, replacement of identification documents (in case of expiration, loss), change of contact information used to communicate with them (him), and the manner of communication and interaction of the collection agency with them (him);

      2) at the request of a collection agency, disclose reliable information on the level of income and expenditure, place of residence (legal address), the availability of property for which, in accordance with the legislation of the Republic of Kazakhstan, a recovery may be made to repay the debt;

      3) to carry out cooperation on settlement of a debt with the collection agency in accordance with paragraph 1 of Article 5 of this Law;

      4) to consider the terms of debt repayment proposed by a creditor and to inform a collection agency or a creditor about the conditions suitable for a debtor within fifteen working days.

Chapter 4. STATE ADMINISTRATION OF COLLECTION AGENCIES, CONTROL OF THEIR ACTIVITIES Article 17. Competence of an authorized body

      1. State regulation and control over the activities of collection agencies are carried out by an authorized body in accordance with the laws of the Republic of Kazakhstan.

      2. The authorized body:

      1) conducts registration and maintains a register list of collection agencies;

      2) determines the list, forms, terms and procedure for reporting by a collection agency;

      3) exercises state control over the activities of a collection agency;

      4) examines a debtor's complaint against the actions (inaction) of a collection agency;

      5) claims to the court on reorganization or liquidation of legal entities in cases provided for by this Law;

      6) performs other powers provided for by this Law, other laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.

Article 18. Exposure measures and the reasons for their use

      1. If a collection agency violates the legislation of the Republic of Kazakhstan on collection activities, banking legislation of the Republic of Kazakhstan or the legislation of the Republic of Kazakhstan on microfinance organizations, identification of illegal actions or inaction of senior and other employees of a collection agency interacting with a debtor, measures of impact established by this article are apply by an authorized body. Impact measures are defined as limited measures of influence and sanctions.

      In case of violation of legislation of the Republic of Kazakhstan on credit bureaus and formation of credit histories, measures of impact envisaged by the Law of the Republic of Kazakhstan "On Credit Bureaus and the Formation of Credit Histories in the Republic of Kazakhstan" are applied to a collection agency.

      2. The authorized body has the right to apply the following limited measures to a collection agency:

      1) to send a mandatory written instruction to a collection agency for adoption of mandatory corrective measures aimed at eliminating the revealed violations and (or) causes, as well as the conditions that contributed to their commission, within the established period and (or) the need for submission plan of measures to eliminate identified violations and (or) causes within a specified period, as well as conditions that contributed to their commission (hereinafter - the plan of measures).

      The action plan submitted in time, established by a written instruction, specifies the description of violations and (or) reasons, as well as conditions that contributed to their commission, the list of planned activities, the terms of their implementation, as well as responsible officials.

      Appealing the written instruction of an authorized body to the court does not suspend its implementation;

      2) to issue a written warning on the possibility of applying sanctions to a collection agency provided for in paragraph 4 of this Article if the authorized body, within one year after issuing this warning, repeatedly violates the norms of legislation of the Republic of Kazakhstan on collection activities, banking legislation of the Republic of Kazakhstan or legislation of the Republic of Kazakhstan on microfinance organizations, similar to violation for which a written warning was issued;

      3) to draw up a written agreement between an authorized body and the collection agency on the need to immediately eliminate the violations identified and approve the list of measures to eliminate these violations, indicating the terms for their elimination and (or) the list of restrictions that a collection agency takes on itself, until the violations are rectified.

      The written agreement is subject to mandatory signing by a collection agency;

      4) to demand the removal of a senior employee or other employee of a collection agency interacting with a debtor.

      3. A collection agency is obliged to notify the authorized body on the execution of measures specified in written instruction and in written agreement, within the terms provided by these documents.

      If the period established for elimination of violation exceeds one month, a collection agency shall notify the authorized body on implementation of measures to eliminate the violations and (or) causes, as well as conditions that contributed to their fulfillment, on a monthly basis until the 20th of the month.

      The use of one limited measure of influence does not exclude the use of other limited measures of influence in cases provided for by the laws of the Republic of Kazakhstan, does not suspend or terminate previously taken measures.

      4. The authorized body may apply as sanctions:

      1) an exclusion of a collection agency from the register of collection agencies on the reasons and in the order provided for in subparagraphs 1), 2), 3), 4), 5), 6) and 7) of the first part of paragraph 1 of Article 9 of this Law;

      2) imposing on a collection agency and collecting a fine from it on the grounds established by the laws of the Republic of Kazakhstan.

      5. The decision of an authorized body on applying to a collection agency the measures of influence provided for in this article may be appealed at the court.

Article 19. State control over the activities of collection agencies

      The state control over the activity of collection agencies is carried out by an authorized body in the form of an audit, organization and conduct of which is determined by the Business Code of the Republic of Kazakhstan or in other forms of control and supervision in accordance with the Law of the Republic of Kazakhstan "On the National Bank of the Republic of Kazakhstan."

Chapter 5. FINAL AND TRANSITIONAL PROVISIONS Article 20. Responsibility for violation of legislation of the Republic of Kazakhstan on collection activities

      Violation of legislation of the Republic of Kazakhstan on collection activities entails responsibility established by the laws of the Republic of Kazakhstan.

Article 21. Transitional Provisions

      1. Organizations that prior to the enactment of this law carried out activities with signs of collection activities shall be subject to re-registration with judicial authorities as a collection agency within six months from the date of enactment of this Law.

      2. In case of non-compliance with the requirement specified in paragraph 1 of this article, organizations are subject to reorganization or compulsory liquidation in accordance with the laws of the Republic of Kazakhstan.

Article 22. Order of enactment of this Law

      This Law enters into force upon expiry of twenty one calendar days after the day of its first official publication.


The President


of the Republic of Kazakhstan

N. NAZARBAYEV


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