Many credit institutions, faced with defaulters, sell problem debts. How legal it is, experts from the State Bureau of the Volgograd Region explained.
According to the leading legal adviser, the bank can indeed cede the rights under the loan agreement to the collector, and with them the debtor’s personal information. However, banks are usually interested in settling problems peacefully and for several months they have been trying to influence it themselves. The collection company is attracted only if a compromise has not been reached, writes Vecherniy Volgograd.ru.
Collectors can act as representatives of the lender and act on his behalf. The bank also has the right to sell the debt, ceding the rights to the debt of its client to the collectors.
However, there must always be an appropriate loan agreement between the borrower and the lender. If, say, collectors are calling allegedly because of a debt on a credit card, and the balance on it is positive, the bank has no right to transfer personal information to third parties.