The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan published a clarification on how collection agencies may operate under the Law on Collection Activities, focusing on when creditors can involve collectors and the restrictions created by the moratorium on assigning citizens’ loan claims to collection agencies. The note explains that banks and microfinance organisations first notify borrowers of overdue payments and offer restructuring, and that if arrears remain unresolved for more than 90 days a creditor may sell or assign the claim or refer it to a collection agency for pre-trial recovery. However, a two-year moratorium introduced from 1 July 2024 bans the assignment of citizens’ loan claims to collection agencies until 1 May 2026, with a possible extension to 1 May 2027 under consideration. During the moratorium, resolution is limited to restructuring, waiving penalties, late fees and commissions, or referring the debt for pre-trial recovery without transferring the claim. After the moratorium ends, transfer is contemplated only where arrears exceed 24 months and the creditor has conducted settlement procedures with mandatory waiver of penalties. The agency also restates borrower rights to obtain information on the collector and debt breakdown, challenge collector demands in court, choose a preferred interaction method and timeframe, and file complaints with the agency. It sets expectations for collector conduct, including limits on calls and meetings, mandatory disclosures in each interaction, and prohibitions on misleading statements, reputational harm, threats or coercion, and on accepting repayments or other property from debtors.

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