Article 4. Grounds for carrying out collection activities of the Law On Collection Activities

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1. Collection activities are carried out on the basis of an agreement, the subject of which is the provision of services to the creditor for pre–trial debt collection and settlement, as well as for collecting information related to debt (hereinafter referred to as the debt collection agreement).

The collection agency is prohibited from concluding a debt collection agreement with creditors who are affiliated persons of the collection agency in accordance with paragraph 2 of Article 12-1 of the Law of the Republic of Kazakhstan "On Limited and Additional Liability Partnerships".

A collection agency is prohibited from entering into an agreement (contract) on the terms of execution of an enforcement document with a private bailiff who is an affiliated person of the collection agency in accordance with paragraph 2 of Article 12-1 of the Law of the Republic of Kazakhstan "On Limited and Additional Liability Partnerships".

The collection agency is prohibited from applying for notarial actions to a notary who is an affiliated person of the collection agency in accordance with paragraph 2 of Article 12-1 of the Law of the Republic of Kazakhstan "On Limited and Additional Liability Partnerships".

IZPI's note! Paragraph 2 is amended by the Law of the Republic of Kazakhstan dated 30.06.2025 No. 205-VIII (effective sixty calendar days after the date of its first official publication).

2. Collection activities are carried out in the event of arrears and the presence in the bank loan agreement or the microcredit agreement of the creditor's right to attract a collection agency if the borrower is overdue in fulfilling obligations under the bank loan agreement or the microcredit agreement.

3. The debt collection agreement between the collection agency and the creditor is concluded in writing and must contain, among other things, the following conditions:

1) the rights and obligations of the parties;

2) responsibility of the parties;

3) the data of the debtor, an individual, allowing to identify his identity;

4) the name, location, and business identification number of the legal entity;

5) the amount of debt;

6) the structure of the debt (the amount of the principal debt, remuneration, commissions, penalties (fines, penalties);

7) if there is information about the guarantor or guarantor under a bank loan agreement or a micro-loan agreement.;

8) if there is information about the subject of the pledge, if the right of pledge under a bank loan agreement or a micro-loan agreement is subject to registration;

9) the amount of remuneration under the agreement;

10) the term of the agreement;

11) the procedure and time limits for notifying (informing) the creditor of the collection agency about payments made earlier by the debtor and (or) about changes in the amounts owed;

12) the procedure for providing information by the collection agency on the progress of the debt collection agreement;

13) the procedure and time limits for termination of the debt collection agreement in the case provided for in paragraph four of the first part of paragraph 5 of Article 9 of this Law, as well as the procedure and time limits for the return of documents;

14) the procedure and conditions for early termination of collection activities in relation to the debtor.

A debt collection agreement may be concluded with respect to one or more debtors with the transfer of a register(s) of debtors on paper or in electronic form, which (which) must (must) contain the information specified in part one of this paragraph.

The debt collection agreement is also accompanied by a list of transferred documents and information on the debtor related to the execution of the debt collection agreement, information on the measures taken by the creditor in relation to the debtor to resolve overdue debts provided for by the laws of the Republic of Kazakhstan. The information is indicated for the period from the last date of non-fulfillment or improper fulfillment of obligations under a bank loan agreement or a micro-loan agreement to the transfer of debt to a collection agency.

The period for the provision of collection services in respect of debt under a debt collection agreement must be at least six months and no more than five years.

Early termination of collection activities in relation to the debtor is allowed in the cases provided for by this Law or a debt collection agreement, as well as in the following cases::

1) declaring the debtor bankrupt in accordance with the procedure established by the legislation of the Republic of Kazakhstan;

2) death of the debtor;

3) the debtor's departure from the Republic of Kazakhstan;

4) exclusion of the collection agency from the register of collection agencies;

5) fulfillment by the debtor of an obligation to the creditor under a bank loan agreement or a micro-loan agreement;

6) provided for in subparagraph 1) paragraph 1 of Article 15 of this Law.

The debt transferred to the collection agency under the debt collection agreement cannot be transferred to another collection agency.

In matters not regulated by this Law, the provisions of the Civil Code of the Republic of Kazakhstan on assignment and paid provision of services shall apply to the debt collection agreement.

4. Excluded by the Law of the Republic of Kazakhstan dated 07/02/2018 No. 168-VI (effective after ten calendar days from the date of its first official publication).

The Law of the Republic of Kazakhstan dated May 6, 2017 No. 62-VI.

This Law regulates public relations related to the implementation of collection activities, establishes the specifics of the creation and operation of collection agencies, and also defines the specifics of state regulation of collection agencies and control over their activities.

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