The Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market
Is it true that a debt collection agency has the right to operate only after registering with the ARDFM?
According to paragraph 5 of Article 1 of the Law on Collection Activities, the Register of Collection Agencies is the unified list of collection agencies maintained by the authorized body in the field of collection activities.
In accordance with paragraph 1 of Article 7 of the Law on Collection Activities, a legal entity intending to carry out collection activities is subject to registration within three months from the date of its state registration (re-registration) in the State Corporation "Government for Citizens."
To undergo registration, the legal entity intending to carry out collection activities shall submit to the authorized body the documents provided by the Resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated March 30, 2020 No. 49 "On Approval of the Rules for Registration and Maintenance of the Register of Collection Agencies."
Part three of paragraph 2 of Article 3 of the Law on Collection Activities establishes that a legal entity not included in the Register of Collection Agencies is not entitled to conduct collection activities, represent itself as engaged in collection activities, or use in its name the words "collection agency," derivatives thereof, or any terms implying that it carries out collection activities.
Information from the Register of Collection Agencies is published on the website of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market at https://www.gov.kz/memleket/entities/ardfm?lang=ru in the section "Financial Markets."
What mistakes do borrowers most commonly make when taking out a mortgage?
The most common mistakes include underestimating one’s financial capabilities, focusing solely on the amount of the monthly payment without considering the total cost of the loan and the overall amount of interest paid, and overlooking additional expenses associated with purchasi...
What additional expenses, apart from the monthly payment, should be taken into account when purchasing a home with a mortgage?
When purchasing a home with a mortgage, it is important to consider not only the monthly loan payment but also additional expenses associated with acquiring and maintaining the property. These may include property appraisal costs, insurance, notarial and registration fees, taxes,...
Can a borrower lose their home due to a prolonged mortgage delinquency? What is the foreclosure procedure?
In the event of a prolonged failure to fulfill obligations under a mortgage loan, the legislation provides for the possibility of foreclosure on the mortgaged property. However, before such measures are taken, borrowers are provided with a number of tools to settle their debt. In...
What are the “gray” and “black” lists of droppers?
To combat dropper schemes, a centralized system for recording suspicious clients has been established. The system is operated by the Anti-Fraud Center of the National Bank, which receives information from banks, payment organizations, telecommunications operators, and law enforce...
What new requirements have been introduced for the remote issuance and reissuance of bank cards?
For the remote issuance and reissuance of bank cards, financial institutions are required to use two-factor authentication, including biometric identification. Bank cards may only be linked to Kazakhstan-registered mobile phone numbers, which reduces the risk of using foreign SIM...
What is “dropping” and what penalties are provided by law?
“Dropping” refers to the illegal provision, transfer, or use of access to a bank account, payment instrument, or identification tool, as well as the execution of unauthorized payments or money transfers, including on behalf of third parties, in exchange for financial compensation...
How has the regulator strengthened its oversight of collection agencies in recent years?
Since 2017, the Agency has pursued a regulatory policy aimed at strengthening oversight of collection activities, improving the functioning of the debt collection market, and reducing unfair collection practices. Since 2017, the following regulatory measures have been introduced:...
Does a debtor have the right to record a conversation with a collector?
Yes. Under subparagraph 7) of paragraph 1 of Article 16 of the Law on Collection Activities, a debtor and/or their representative has the right to independently record interactions with employees of a collection agency using audio and/or video recording equipment.
