Association of banks' problem borrowers could help withstand debt collectors' willful behavior, says activist

Kyiv, September 15 (Interfax-Ukraine) – Vice president of the Fund for the Promotion of Investment and Privatization Serhiy Kliuchenko suggests that bad debts be sold to borrowers under the same conditions as they are sold by banks to debt collectors, and that problem borrowers file collective claims against banks.

"We'd like to create an association which would assist people who have borrowed money in buying back those loans at the same discount rates provided by banks for these loans to debt collecting groups," he said at a press conference at Interfax-Ukraine on Wednesday.

He said that the people are ready to repay their arrears. Kliuchenko says that if banks sell bad debts with such huge discounts, "why then can they not hand over the liabilities to the people who owe these debts."

"Our major aim is to safeguard people from willful behavior… If a bank has about 5,000 people and we could gather them from one region and file one claim against the bank, it would be easier to get an amicable agreement or sell the debt to the [problem borrowers]," Kliuchenko said.

Fedir Oleksiuk, the head of the coordinating council of the Vasha Nadiya anti-debt collectors and human rights activists association, in turn said at the press conference that debts could be bought out only if a buyer has a license for factoring activity.

"This is why we've decided to form a fund," he said. "Of course, the fund has to earn its living from something, perhaps, there will be certain commission, but it won't be huge. Trust me: 70% of the debts that are considered to be bad will start to be repaid in three or four, maybe six months."

He said debts collectors, after they have bought bad debts, do not pay attention to a change in the conditions of a certain borrower and charge fines and impose sanctions in full, disregarding the fact that they bought these loans for very little.

"This issue has to be settled at the legal level and… borrowers should be given an opportunity to buy these debts under the same conditions as those of collectors," he said.

As was announced at the press conference that the above-mentioned fund is being formed by, among others, the Vasha Nadiya anti-debt collectors and human rights activists association and the Fund for the Promotion of Investment and Privatization.