The code of ethics and standards of work with arrears in the market of microfinance institutions

In the document it is told that everyone IFI has the right to be engaged independently in collecting arrears, or can address the collection agency. Activities for collecting should be performed so that not to do harm to a goodwill of other participants of the market of IFI and all collection community in general, i.e. only legal methods which are not doing moral and/or material harm to debtors.

Also in the Code it is said that the agencies or IFI should select "the form of communication with the debtor conforming to requirements of the legislation comfortable for both parties and promoting achievement of collecting arrears". So, the agency it is possible to address the debtor except the period from 23 o'clock in the evening to 7 o'clock in the morning at any time. Besides, the Code contains also obvious, but not less important points that it is necessary to treat debtors correctly and validly and not to humiliate honor and dignity of the debtor at all.

According to the report of analytical service of JSC Gorodskaya sberegatelnaya kassa company, in the II quarter 2013 466 new IFIs were entered in the register, and the total number of IFI operating in the territory of the whole country reached 3248. Due to such rapid growth there is a question of regulation of activity of such organizations more and more sharply. The risk of increase in a share of overdue loans is high, so the mechanism of return of debts becomes the most important part of work of IFI.

Code of ethical standards (IFI)

Crediting in Russia

• Crediting in Russia (unsettled debts, debt)
• Collection agencies (market of Russia)
• Debt for telecommunication services
• Debt for housing and communal services
• Recourse and subrogated debt in Russia
• The amount of unsettled debts on the credits in Russia