Collectors will not be able to transfer all housing and communal services debts

The right to return utility debts cannot be transferred to collectors and other third parties - the State Duma adopted a bill on this topic in the second reading.

The authors of the initiative were State Duma Vice Speaker Irina Yarovaya (ER) and Deputy Head of the United Russia faction Andrei Isaev.

According to State Duma Chairman Vyacheslav Volodin, the bill will further protect the rights of citizens from violations when repaying debts in the housing and communal services sector. He recalled that in 2019, the State Duma adopted a law prohibiting the involvement of collection agencies in the return of citizens’ utility debts. The ban was introduced for management organizations, homeowners' associations, housing cooperatives, and resource supply organizations.

However, gaps emerged. And the new document expands the list of persons who cannot assign debts to collectors and other third parties - the list will include landlords of residential premises under a contract, rental of state or municipal housing stock. If these individuals try to sell utility debts to collectors, the transactions will be considered void.

According to Irina Yarovaya, deputies are extending the existing ban on landlords transferring debts to collectors - thus, we are talking about housing with social rent and non-profit rental housing.

“We certainly protect citizens from any options for transferring citizens’ debts for execution to collectors by legal entities that provide public services. A citizen’s debt in the housing and communal services sector can only be collected through civil legal procedures and in court, which will allow one to act lawfully and in a civilized manner,” she said.

Assignment of debt is allowed only in one case - at the time of changing the management company, resource supply organization or changing the form of management. At the same time, debts will be prohibited from being transferred if citizens are not notified in a timely manner about the transfer of such rights.

“The amendments to the bill, in addition to debts for housing and communal services and major repairs, add debts for the rental of residential premises, which local governments provide under a social tenancy agreement. These debts also cannot be transferred,” said Svetlana Razvorotneva, deputy chairman of the State Duma Committee on Construction and Housing and Public Utilities.

A comment

Vladimir Koshelev, First Deputy Chairman of the State Duma Committee on Construction and Housing and Public Utilities:

“Utility companies need to completely prohibit the use of collectors and any other third parties to extract debts from citizens. We supported such amendments to the Housing Code.

Back in July 2019, Russian President Vladimir Putin signed a law prohibiting the transfer of citizens' debts to collectors for the provision of housing and communal services. But utility companies quickly found a loophole and adapted to attract collectors as their authorized representatives. As a result, nothing has changed for people: they are still forced to listen to threats and withstand aggressive pressure, although such a practice clearly contradicts the spirit of already adopted and long-standing laws.

For the second reading, we worked through amendments that propose to include in the Housing Code an unambiguous ban on any transfer of the right to collect debts for housing and communal services to any third parties. The restriction will be introduced for management companies, homeowners’ associations, housing cooperatives, resource supply organizations and regional waste collection operators, as well as for landlords under social tenancy agreements.”