Recommendations on Ensuring the Protection of the Rights and Legitimate Interests of Individuals in the Collection of Their Overdue Debts

Attachment No. 1040 to the Resolution No. 19/3 of the Board of the Central Bank of the Republic of Uzbekistan dated June 24, 2023

Recommendations on Ensuring the Protection of the Rights and Legitimate Interests of Individuals in the Collection of Their Overdue Debts

These Recommendations regulate the mutual relations between credit organizations and individuals regarding the repayment of overdue debts on their credits for the purpose of protecting the rights and legitimate interests of individuals.

Chapter 1. General Rules

1. The following basic concepts are used in this document: credit organization – banks and microfinance organizations; debtor – individuals who have overdue debt before a credit organization; credit – credits and microloans provided by a credit organization; debt – overdue monetary obligations of the debtor arising before the credit organization on the basis of credit (microloan) agreements concluded with it.

2. Relations between credit organizations and debtors are based on the principles of compliance with laws, reliability, transparency, mutual respect, providing accurate and reliable information.

Chapter 2. Rules for Entering into Interaction with Debtors by Credit Organizations for Debt Collection

3. When carrying out actions aimed at repaying debts, a credit organization (including a credit organization to which the right of claim has passed) may enter into interaction with the debtor in the following forms: personal meetings, conversations via telephone (direct mutual relations); sending text, voice and other messages sent via electronic communication networks; sending postal shipments to the debtor's place of residence or registered address.

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Additional methods of interaction of the credit organization with the debtor may be provided in a written agreement concluded between the debtor and the credit organization taking into account the requirements of these Recommendations.

4. The debtor may refuse additional methods of interaction at any time by notifying the credit organization. In this case, the notice by the debtor is submitted to the credit organization by sending a registered letter by mail or directly to an employee of the credit organization based on a receipt confirming receipt of the notice. From the date of receipt of such notice, the credit organization does not have the right to use additional interactions in carrying out interactions with the debtor.

5. At the initiative of the credit organization, entering into interactions with third parties (family members of the debtor, relatives, other persons living with the client, neighbors of the client, acquaintances, individuals working with the client and other individuals) regarding the collection of overdue debts is allowed only if the following consents exist: consent given by the debtor for the credit organization to enter into interactions with third parties; consent given by the third party to carry out interactions with the credit organization regarding the debtor's debt. These consents, as well as consents on processing personal data of the debtor and (or) third parties, must be submitted to the credit organization as a separate document in writing.

6. The debtor may withdraw the consent given to carry out interactions with a third party regarding the collection of overdue debts at any time by notifying the credit organization. In this case, the notice by the debtor is submitted to the credit organization by sending a registered letter by mail or directly to an employee of the credit organization based on a receipt confirming receipt of the notice. From the date of receipt of such notice, the credit organization does not have the right to enter into interactions with third parties.

7. A third party may withdraw the consent given to carry out interactions with them at any time by notifying the credit organization via a letter in any written form.

8. Credit organizations may not involve employees who have an unremoved or unexpunged conviction status for crimes committed against the person to enter into interactions based on personal meetings and/or conversations via telephone with the debtor.

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9. Involvement of persons outside the territory of the Republic of Uzbekistan (non-residents) at the initiative of the credit organization to enter into interactions with the debtor, as well as contacting via telephone communication from outside the territory of the Republic of Uzbekistan, sending text, voice and other messages via electronic communication networks is not allowed.

10. Credit organizations are prohibited from doing the following when entering into interactions regarding debt repayment: using physical force or threatening to use force against the debtor and third parties, threatening to kill or harm health; threatening to destroy or damage property or threatening to destroy or damage such; using methods dangerous to human life and health; using words insulting the honor and dignity of the debtor and third parties and committing other actions to exert psychological pressure on the debtor and other persons; causing any other illegal harm to the debtor and third parties or abusing rights.

11. If otherwise not provided by legislative acts, the credit organization does not have the right to provide (notify) or publish as open information to third parties any personal data about the debtor, overdue debt and its collection, without the consent of the debtor. The debtor may cancel the consent given to disclose information about their debt at any time by notifying the credit organization. In this case, the notice by the debtor is submitted to the credit organization by sending a registered letter by mail or directly to an employee of the credit organization based on a receipt confirming receipt of the notice. From the date of receipt of such notice, the credit organization does not have the right to provide (notify) information about the debtor, overdue debt and its collection, as well as other personal data of the debtor to third parties, except for cases provided by legislative acts.

12. Persons who received information about the debtor's debts during the negotiation process on concluding an agreement must subsequently maintain the confidentiality of this information even if they do not carry out actions aimed at repaying the debts of the relevant individuals.

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13. Regardless of the debtor's consent, disclosing information about the debtor, overdue debt and its collection, as well as other personal data of the debtor to an unlimited number of persons is prohibited, including placing such information on the Internet or in residential buildings, houses, any other buildings, structures, facilities.

14. At the initiative of the credit organization, entering into interactions with the debtor in accordance with paragraph 3 of these Recommendations is not allowed in the following cases: a) when the debtor is declared bankrupt or when there is no overdue debt as a result of restructuring of their debt; b) when the debtor submits relevant documents confirming the following: deprivation of legal capacity, limitation of legal capacity, including on the grounds provided for in Article 31 of the Civil Code; undergoing treatment in a stationary medical institution.

15. At the initiative of the credit organization, entering into direct interactions with the debtor is not allowed in the following cases: a) during the time from 20:00 to 8:00; b) personal meetings more than once a week; c) via telephone communication: more than once a day; more than twice a week; more than eight times a month.

16. When entering into interactions with the debtor each time based on a personal meeting, an employee of the credit organization must provide information about their first name, last name and patronymic, informing the debtor of the name of the credit organization and that they are meeting on behalf of the organization.

17. Sending text, voice and other messages to the debtor via electronic communication networks by the credit organization is not allowed in the following cases: during the time from 20:00 to 8:00; more than twice a day; more than four times a week;

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more than sixteen times a month.

18. Text, voice and other messages sent to the debtor via electronic communication networks for the purpose of repaying debt must contain at least the following information: name of the credit organization; about the existence of overdue debt, including about its amount and composition (principal debt, interest debt and others); contact telephone number of the credit organization.

19. All messages sent by mail to the debtor at their place of residence or registered address by the credit organization for the purpose of repaying overdue debt must indicate the following: name of the credit organization, information about the credit organization (location (postal address), email address and contact telephone number); first name, last name and patronymic of the person who signed the message and their position; information about agreements and other documents that are the basis for the emergence of the right of claim against the debtor; information about the amount and composition of the debt, terms and procedure for its payment (if the right of claim of the previous credit organization has partially passed to the new credit organization, the amount of the transferred right of claim is also indicated); the period by which the debtor must fulfill their obligations (must be no less than ten days); consequences of the debtor's failure to fulfill their obligations by the established deadline; methods of paying debts and bank details where funds can be transferred; methods of pre-trial dispute resolution.

20. For direct communication with the debtor via telephone communication, the credit organization is allowed to use only corporate numbers belonging to the credit organization. In this case, hiding information about the contact telephone number from which the call was made or message was sent to the debtor, or the email address to which the message was sent, or about the sender is prohibited.

21. Interactions with the debtor must be carried out in the state language or in the language in which the agreement was concluded.

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Chapter 3. Final Rules

22. The rules for carrying out relations related to repayment of overdue debts provided for in these Recommendations also apply when carrying out interactions with third parties.

23. When carrying out actions aimed at repaying debt, the credit organization must act in good faith and reasonably.