Dmitry Uryakin has commented for DP on the Ministry of Justice’s planned changes to the collection of overdue debts

Dmitry Uryakin - Senior Associate

The Ministry of Justice of the Russian Federation plans to introduce a mandatory requirement for the pre-trial settlement of overdue debts. It is assumed that banks, microfinance organisations and collection agencies will have the right to apply to a court after using at least three methods of persuading a debtor: telephone calls, personal visits, and notifications via “GosUslugi” services. Creditors will be able to file a lawsuit only one calendar year after the start of the pre-trial procedure. In addition, creditors will be charged an additional fee for applying to the Federal Bailiffs Service. The changes are probably aimed at reducing the workload of courts and bailiffs services.

“The percentage of satisfaction at the pre-trial stage of credit debt collection claims is low. The introduction of a mandatory pre-trial dispute resolution procedure is more likely to delay the inevitable for creditors – the filing of a lawsuit in court, rather than really reduce the burden on the courts,” Dmitry Uryakin, Senior Associate at Maxima Legal, commented especially for Delovoy Peterburg newspaper.

To read the full article (in Russian), please, see Delovoy Peterburg newspaper No. 25 of 15 March 2024