Second Reading of the Bill on Credit Servicers and Credit Purchasers (376 SE)

Session: 15th Riigikogu, 3rd session, plenary sitting

Date: 2024-06-06 07:20

Total Speeches: 5

Membership: 15

Agenda Duration: 13m

AI Summaries: 5/5 Speeches (100.0%)

Analysis: Structured Analysis

Analysis

Summary

This agenda item addressed the second reading of Draft Law 376 on credit collection agencies and purchasers, initiated by the Government of the Republic. Eduard Odinets, Chairman of the Legal Affairs Committee, presented a comprehensive report, explaining that this is an entirely new law which subjects credit collection agencies and debt buyers to the supervision of the Financial Supervisory Authority. The draft law regulates only those collection firms that deal with the recovery of debts arising from loans provided by banks and other credit providers. The Committee discussed the preparation of the draft law over four sessions, extensively involving stakeholders, including courts, banking associations, and the Data Protection Inspectorate.

The main topics of discussion concerned the scope of documentation that the credit provider must hand over to the collection firm upon transferring a claim, in order to prove the analysis of the consumer's creditworthiness, while simultaneously avoiding the disclosure of business secrets. Ultimately, a compromise was reached that satisfied all parties. The Committee decided to leave more complex topics unresolved within the framework of the current draft law, such as lowering the total cost rate of credit and restricting nighttime lending, postponing these issues for discussion in future draft laws (e.g., the positive credit register and the transposition of the consumer directive). The Legal Affairs Committee submitted and fully accounted for 16 amendments, and the second reading was concluded by consensus.

Decisions Made 2
Collective Decision

The 16 amendments to Draft Bill No. 376, which were submitted by the Legal Committee, were fully taken into account.

Collective Decision

The second reading of Bill 376 was concluded.

Aseesimees Toomas Kivimägi
07:20:27
AI Summary

Next, the second reading of Bill 376, the draft Act on Credit Servicers and Credit Purchasers, initiated by the Government of the Republic, will be discussed. The report will be presented by Eduard Odinets, Chairman of the Riigikogu Legal Affairs Committee.

Eduard Odinets
07:20:48
AI Summary

Eduard Odinets spoke about a new bill that regulates debt collection firms and their recovery of debts, placing debt collection companies under the supervision of the Financial Supervisory Authority and subjecting them to licensing, capital, and management requirements. The bill also involves stakeholders, addresses the limits of data sharing, and plans for a positive credit register and the transposition of the Consumer Directive. Furthermore, consensus amendments were reached concerning the cost rate of credit, nighttime lending, and the priority order of enforcement proceedings.

Aseesimees Toomas Kivimägi
07:33:25
AI Summary

He thanked the audience and said that there were no questions.

Eduard Odinets
07:33:27
AI Summary

Eduard Odinets thanks the audience.

Aseesimees Toomas Kivimägi
07:33:28
AI Summary

This address outlines the review of the proposed amendments, emphasizes that all 16 proposals must be taken fully into account, and reports that the steering committee has concluded the second reading of Draft Law 376.