Who Are Debt Collectors and How to Avoid Encounters with Them

Over the past decade, the term “debt collector” has often been associated with aggressive individuals who relentlessly pursue debtors to recover money. This guide explains who debt collectors really are, why people fear them, and how lawful their actions are.

Table of Contents

1. Who Are Debt Collectors?
2. What Can Debt Collectors Legally Do to Debtors?
3. What Are Debt Collectors Not Allowed to Do?
4. Who Are the Collectors Vandalizing Property and Assaulting Debtors?
5. Why Do Collectors Contact Me Over a Small Debt?
6. How to Communicate with Debt Collectors?
7. How to Avoid Encounters with Debt Collectors?
8. What to Do If You Encounter Illegal Debt Collectors?
9. What to Do If You Have No Debt but Are Still Harassed?

Who Are Debt Collectors?

Debt collectors are professionals who specialize in recovering outstanding debts. They usually work with borrowers of major banks or are employed by microfinance institutions. Their primary goal is to ensure debtors repay their loans, often using persistent methods.

Debt collection agencies first emerged in the United States during the 1960s and expanded to Europe in the 1980s. In Russia, early debt collection firms were initially subsidiaries of banks. The first independent collection agency, ZAO “FASP,” was registered on August 9, 2004.

Currently, debt collectors in Russia operate under two main models:

1. They purchase debts from credit institutions at a discounted price. The bank writes off the difference as a loss, while the agency attempts to collect the full amount from the debtor.
2. The original contract between the client and the bank remains active, and the collector encourages regular payments.

What Can Debt Collectors Legally Do to Debtors?

According to regulations governing debt collection, collectors are permitted to:

• Communicate with the debtor only with their consent;
• Remind the debtor about the debt and explain the consequences of non-payment;
• Make no more than one call per day, two calls per week, and eight calls per month;
• Meet the debtor in person no more than once a week.

What Are Debt Collectors Not Allowed to Do?

Beyond limiting call frequency and in-person visits, laws forbid debt collectors from:

• Using physical force, threatening bodily harm, or threatening death;
• Damaging or destroying the debtor’s property;
• Insulting the debtor’s honor or dignity;
• Misrepresenting the debt amount or falsely claiming criminal liability;
• Sharing credit information with third parties such as family members, acquaintances, or employers;
• Publicly disclosing debt information via media, internet, or social networks;
• Contacting debtors between 10 p.m. and 8 a.m. on weekdays, and between 8 p.m. and 9 a.m. on non-working days.

Who Are the Collectors Vandalizing Property and Assaulting Debtors?

Like any industry, debt collection has a dark side. Occasional calls without threats rarely motivate debtors to repay. Since collectors’ salaries often depend on the amount collected, some take extreme measures.

Illegal “black” collectors use tactics ranging from incessant calls to outright intimidation, including threats to debtors and their families, property vandalism, arson, and physical assault. These actions are strictly illegal.

Why Do Collectors Contact Me Over a Small Debt?

Collectors typically acquire small debts that have accumulated significant unpaid interest. For large debts, credit institutions usually pursue legal action through the courts.

How to Communicate with Debt Collectors?

Stay calm and composed. Debt collectors must identify themselves. If they don’t, ask for their name, the agency they represent, and contact details. This allows you to verify their legitimacy by contacting the agency directly.

Confirm whether the bank has transferred your debt to the agency. Contact the credit institution to ensure you no longer have obligations to them. If you still owe the bank, negotiate restructuring options. If the debt is with the collector, request official loan documents to avoid paying money without debt cancellation. If everything is legitimate, repay your debt and continue with peace of mind.

Maintain a polite tone but avoid sharing personal details such as your residence or daily routines. There is no need to justify why you haven’t paid; this only wastes time.

How to Avoid Encounters with Debt Collectors?

To avoid debt collectors, either refrain from taking loans or handle borrowing responsibly. Always sign a written agreement with the bank or microfinance institution, which should include:

• The loan amount in US dollars;
• The total repayment amount;
• A repayment schedule;
• Terms for early repayment, including any advance notice requirements and penalties;
• Consent or refusal for sharing personal data with third parties.

The key is to repay loans on time. If your financial situation changes and you cannot meet the original terms, contact the lender. Banks are motivated to recover their money and will likely offer a revised payment plan.

What to Do If You Encounter Illegal Debt Collectors?

If collectors use unlawful methods, immediately report them to the police. Threats, unauthorized home entry attempts, and physical violence are criminal offenses covered by criminal law, not just debt collection regulations.

However, be aware that police may sometimes refuse to accept complaints, often with unlawful excuses. If police assistance is insufficient, escalate the complaint to the prosecutor’s office. Prosecutors can compel law enforcement to perform their duties properly.

While relying on state protection, remember that self-help is crucial. Collect evidence by:

• Recording threatening or excessive calls;
• Calling the police whenever collectors visit your home and try to enter;
• Photographing damaged property.

This evidence will be essential in court. You can file claims against both the collection agency and the bank. For example, a borrower in Orenburg successfully sued “Vostochny Express Bank” for improperly sharing personal data and was awarded compensation. In Karelia, a collector was sentenced to 10 months imprisonment for threatening to bomb a daycare center where the debtor worked.

What to Do If You Have No Debt but Are Still Harassed?

Such cases are not uncommon. Collectors may target you because a debtor lived in your apartment, shares your name, or is a relative. Illegal tactics include graffiti on buildings and marking vehicles in the debtor’s neighborhood.

These methods are illegal. Police should handle such harassment, and it is best to take the matter to court with evidence of threats or property damage.

For instance, lawyer Roman Kuzmin from Omsk won a lawsuit against collectors representing Trust Bank after being harassed for nine months due to a mistaken identity. He received compensation and court costs. In the Saratov region, microloan company employees were convicted for vandalizing an apartment entrance.

You may try resolving the issue amicably by contacting the bank to update their records, but this approach is often ineffective.

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