The Government wants to regulate for the first time the activity of the debt recovery firms in Romania in relation to individuals.

The banks will not be allowed anymore to outsource the portfolio of existing loans or sell receivables to companies they own. Recovery companies will be forbidden to charge interest on debts acquired or harass borrowers, according to a draft ordinance published by the National Authority for the Consumers’ Protection (ANPC).

The recovery firms and banks have operated so far based on the provisions of the Civil Code related to the assignment of receivables. The civil law, however, has no provisions on how the debt recovery companies are allowed to behave. This allows them to operate freely, even if debtors felt harassed.

editor@romania-insider.com