VCN- The Ministry of Finance has just completed and asked for comments on the draft Decree amending and supplementing a number of articles of the Government's Decree No. 104/2007 / ND-CP dated 14thJune 2007, on debt collection service.
|The Ministry of Finance proposed to abolish the Decree on Debt Collection Services instead of amending it|
|Strengthening supervision of debt collection services|
|Wearing a uniform when collecting debts is one of the compulsory regulations issued by the Ministry of Finance. Photo: internet.|
Managerial role is not significant
According to the Ministry of Finance, after more than 10 years of implementation, Government’s Decree 104 has created the legal basis for debt collection service business. The state management of this service has been strengthened, thus strictly controlling the conditions for establishment and operation of debt collection service enterprises so as to step by step put this service into order.
However, due to the sensitive nature of the debt collection service business, in practice, their operation is still limited, especially breaches related to security and order still occur. Breaches related to security and order were the case that Tai Ga company (Ho Chi Minh City) when collecting debts committed a terrorist act against employees of the branch of Cong Ly Company (Ho Chi Minh City) by collaborating with mafia to kidnap and blackmail to collect debts, etc.
The main reason for the limitations is that debt collection service enterprises have not complied with Decree 104 and mainly broke regulations on business conditions of debt collection service and regulations on social security and order. Meanwhile, the role of the State management agencies is not significant, the public security force only handles to maintain social security and order when an incident occurs,
Moreover, Decree 104 does not the provide for responsibility of the public security force. They are not authorized to sanction administrative violations to a debt collection service enterprise.
Therefore, the Ministry of Finance proposed that it is necessary to amend and supplement Decree 104 to ensure consistency with the current law and remove the limitations mentioned above.
Wearing uniform is compulsory when collecting debts
In the draft Decree amending and supplementing many provisions of Decree 104, the Ministry of Finance proposed to add a provision on wearing uniform for debt collectors when carrying out debt collection activities, such as they have to wear uniform and staff cards, andpresent a letter of recommendation. Furthermore, it adds a provision on the responsibilities of the Ministry of Public Security for debt collection service business to strengthen management and supervision.
In fact, in recent times, in many localities, debt collection service enterprises organized into crowds and groups wearing mafia-style clothes to collect debts and make trouble at debtors’residencies and manufacturing places, causing psychological panic, obstructing business, affecting the honor and freedom of individuals and organizations as debtors.
Therefore, the provision of wearing uniform for debt collectors is very necessary and is to strengthen the supervision of the whole society for this activity. By identifying debt collectors, it will limit the status of grouping and disruptions and help raise public awareness of the debt collection service industry which is considered as a legal industry.
In addition, the debt collection service is a sensitive industry in terms of security and order due to the main violations by debt collection service enterprises today using illegal debt recovery measures like mafia. In terms of business, the debt collection service as well as other business activities are independent on their operation and self-responsible for the results of their operation.
Accordingly, the Ministry of Finance submits to the Government to stipulate the management role of each ministry and sector for each operational aspect of the debt collection service enterprises.
Specifically, the Ministry of Public Security is responsible for state management of security and order and handling of administrative violations. The Ministry of Finance shall have to submit to the Government for amendments and supplements to the regulations on debt collection service.
|Difficulties during tax debt collection in Quang Ninh Customs Department|
The localities shall have to inspect and supervise the debt collection service in their provinces or cities. Particularly, regulations on the provincial / municipal People's Committees that have to report to the Ministry of Finance on the debt collection service in their provinces or centrally run cities yearly, and irregular basis should be removed.
By H. Van/ Huyen Trang