Proposing the Ministry of Public Security to manage debt collection services

The Ministry of Finance has just announced a draft Decree amending and supplementing a number of articles on debt collection services, in which it proposes that the Ministry of Public SecurityResponsible to the Government for implementing state management of security and order in debt collection service business activities.

The Ministry of Finance said that debt collection services still have many limitations, especially violations of security and order.Specifically, this service uses unqualified and unqualified staff; operates at the wrong address, not in accordance with the content stated in the business registration certificate; some debt collection companies even commit "terrorist" acts; employees collude with gangsters to kidnap and extort money to collect debts...

Furthermore, debt collection services are currently regulated in Decree 104/2007 of the Government but have not yet specifically regulated the management responsibilities of the Ministry of Public Security, so the Ministry of Finance proposes separately the contents for which the Ministry of Public Security must be responsible, including:

The Ministry of Public Security shall be the focal point for directing the police at all levels to inspect, supervise and guide the implementation of the provisions of this Decree and other provisions of law related to debt collection service business activities; issue Certificates of eligibility for security and order according to Government regulations to debt collection service businesses; revoke Certificates of eligibility for security and order for businesses that violate the law, causing disorder and social insecurity; organize inspections and handle violations of security and order regulations in debt collection service business activities according to their authority.

The Ministry of Public Security is also proposed to coordinate with the Ministry of Finance and relevant agencies to submit to the Government amendments and supplements to regulations on debt collection services.

Allowed to apply necessary professional measures to prevent, stop and handle violations of the law and crimes related to debt collection service business activities.

In addition, the proposed localities are responsible for managing, inspecting, supervising debt collection service business activities and sanctioning administrative violations according to their authority for violations of debt collection service business activities in the province or centrally-run city according to the provisions of this Decree and other relevant legal documents;Recommend the Ministry of Public Security to handle acts showing signs of crime.

The Ministry of Finance shall preside over and coordinate with the Ministry of Public Security and relevant agencies to submit to the Government amendments and supplements to regulations on debt collection services.

Regarding the above proposal of the Ministry of Finance, on the afternoon of August 23, in an exchange withVnExpress, a representative of the Ministry of Public Security said that they have not received any specific documents on this matter, however, this is just a draft and needs many constructive comments from relevant departments before promulgation.

According to the representative of the Ministry of Public Security, debt collection services are very complicated, but all activities related to this field must comply with the provisions of law. In addition, currently, with any content related to the state management of the Ministry of Public Security, the Ministry is still responsible for performing in accordance with its authority, functions and tasks.

Prohibitions on debt collection services

For creditors or debtors:Authorizing debt collection service enterprises to carry out activities exceeding the legally recognized rights of creditors or debtors;Carry out or through others carry out acts of fraud, use force or threaten to use force against employees of debt collection service businesses.

For debt collection service businesses:Carry out or through others carry out activities or acts that infringe upon the life, health, dignity, honor, personal freedom, property rights and other civil rights of debtors, creditors and other related organizations and individuals.

Using information obtained from debt collection services that is detrimental to creditors and debtors for purposes other than those authorized or disclosing such information to other organizations or individuals, unless otherwise provided by law.

Performing activities or acts beyond the rights recognized by law or beyond the scope authorized by the creditor or debtor.

Represent both the creditor and the debtor at the same time to deal with the same debt.

Prohibited acts according to Government regulations on security and order for certain conditional business sectors and occupations.