Problems of Debt Collection in Russia

Abstract

This study examines problems with debt collection in Russia. Aim. This study identifies the problems in the collection of debt in the context of increasing confrontation between creditors and debtors amid economic instability. Tasks. This study determines the factors that negatively affect debt collection, the working phases of collection agencies, and the legislative background of debt collection in Russia. Methods. This study uses general methods of scientific cognition to examine the reasons for debt loss and identifies trends in the current state of debt collection. Results. It is determined that debt collection has been officially recognized by the government as an economic activity. Debt collection (debt recovery) is meant to be an independent activity performed by legal entities and private individuals at their own risk and aimed at a systematic receipt of profit. Conclusion. A legal framework for debt recovery would allow the protection of rights and interests of debtors while serving the interests of creditors, thus providing efficient settlement of past-due debts. A promising direction in the improvement of legislation is to extend the restrictions and prohibitions on the methods of debt collection.