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Official Gazette

Tuesday, June 28, 2022

Public security agency is tasked to manage debt collection service

Updated: 10:09’ - 25/10/2018
The Ministry of Public Security (MPS) would be held responsible before the Government for performing the state management of public security and social order regarding debt collection activities.

It is provided in a draft decree prepared by the Ministry of Finance to revise Decree 104 issued in 2007 on debt collection service.

An illegal debt collection practitioner is arrested by the police office of Quang Xuong district, Thanh Hoa province __Photo:

Under the draft, the MPS would be accountable for directing police offices at all levels to inspect and supervise debt collection and related activities. It would also take charge of issuing certificates of satisfaction of public security and social order-related conditions to debt collection service providers. In case a debt collection service business commits violations, disrupting public security and social order, the ministry would revoke the certificate and inspect and handle these violations in accordance with law. The MPS would also apply necessary professional measures to prevent, control and handle violations and crimes related to debt collection services.

At present, the responsibility to perform the state management of debt collection service businesses is rested on several ministries, including the Ministry of Finance, for insurance firms, the State Bank, for banks, and the Ministry of Transport, for transport businesses.

In order to improve professionalism in provision of debt collection service, the draft adds new requirements on service providers. Accordingly, debt collectors would be required to wear uniforms stuck with name tags and present to debtors and related organizations and individuals letters of recommendation issued by their employers. When terminating the employment contract with a debt collector, the debt collection service provider must revoke the uniform and name tag. Any violation of these regulations would be handled under the Government’s rules.

Under the draft debt collection service businesses must have a charter capital of at least VND 2 billion (approximately USD 87,000) and their directors must hold a university degree in economics, business administration, law, or public security.- (VLLF)

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