Third Reading of the Draft Act on Credit Servicers and Credit Purchasers (376 SE)
Session: 15th Estonian Parliament, 3rd session, plenary session.
Date: 2024-06-12 19:56
Participating Politicians:
Total Speeches: 12
Membership: 15
Agenda Duration: 14m
AI Summaries: 12/12 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Riigikogu reached the fifth item on the agenda, which was the third reading of Draft Act 376, the Credit Collectors and Buyers Act, initiated by the Government of the Republic. During the debates, Eduard Odinets, representative of the Social Democratic Party faction, called on his colleagues to support the bill, emphasizing that it subjects debt collection firms to the supervision of the Financial Supervision Authority, establishes licensing and a minimum capital requirement (€25,000) for them, as well as trustworthiness requirements for managers. At the same time, Odinets pointed out that the law does not do enough to protect people from falling into a debt spiral, and listed several unresolved issues, such as the delay of the positive credit register (promised by 2026), the need to lower the cost of credit ceiling, establish an absolute cap on penalty interest rates, restrict nighttime lending, and create the position of a financial ombudsman. Andrei Korobeinik, representative of the Centre Party faction, agreed that insufficient steps have been taken to save people from debt bondage, criticizing the government's priorities and the Ministry of Finance's inability to launch the positive credit register faster. Following the conclusion of the debates, the final vote was held.
Decisions Made 1
The Draft Law 376 on Credit Collection Agencies and Purchasers, initiated by the Government of the Republic, was passed as law with 75 votes in favor (0 against, 1 abstention).
Aseesimees Toomas Kivimägi
AI Summary
We now move to the fifth item on the agenda, which is the third reading of Draft Law 376 concerning credit collection agencies and buyers. The floor is opened for debate, and on behalf of the SDE faction, Eduard Odinets requests eight minutes of additional time.
Eduard Odinets
AI Summary
Eduard Odinets called for support for Bill 376, which would place the activities of credit collection agencies and debt buyers under the supervision of the Financial Supervisory Authority. The bill establishes requirements for trustworthiness and minimum capital, and implements various operational and organizational standards. Simultaneously, he emphasized the need for consumer protection, a debt register, an absolute ceiling on penalty interest, restrictions on night loans, and the creation of a financial ombudsman, all designed to curb irresponsible lending and help people who have fallen into loan debt.
Aseesimees Jüri Ratas
AI Summary
Jüri Ratas thanked the assembly and invited Andrei Korobeinik, the representative of the Estonian Centre Party faction, to take the Riigikogu rostrum and speak.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik claims that the state has not done enough to rescue people from debt bondage—the poverty risk for pensioners has increased, taxes have been raised, and the financial ombudsman and the positive credit register have been postponed. Although the draft legislation is a small step in the right direction and the Centre Faction supports it, the government is not prioritizing things correctly.
Aseesimees Jüri Ratas
AI Summary
The Vice-Chair thanks the speaker and announces that Eduard Odinets will now take the floor to deliver a reply regarding the point raised.
Eduard Odinets
AI Summary
Eduard Odinets expresses his thanks, noting that he has been mentioned four times, and takes the opportunity to say something again.
Aseesimees Jüri Ratas
AI Summary
He/She stressed that the speaking time was only two minutes, not eight, and requested that this limit be adhered to.
Eduard Odinets
AI Summary
Eduard Odinets said that something has been mentioned four times.
Aseesimees Jüri Ratas
AI Summary
He said he made the clarification for himself, not for others.
Eduard Odinets
AI Summary
Eduard Odinets confirmed that both the Legal Affairs Committee and the Ministry of Finance are continuing discussions, and the draft bill for the positive credit register will soon reach the Riigikogu. However, complex technical solutions and other issues, such as the transposition of the consumer protection directive, were removed from the current draft bill so as not to impede its adoption, and these matters will be addressed further in cooperation with the Centre Party faction.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas closed the discussions, announcing that the leading committee’s proposal was to proceed with the final vote on Bill 376, and requested his colleagues to state their position and cast their vote in the third reading.
Aseesimees Jüri Ratas
AI Summary
The bill on credit collection agencies and buyers, initiated by the Government of the Republic, was adopted as law with 75 votes in favor, 1 abstention, and none against, thereby concluding the consideration of the fifth item on the agenda.