Validity of Debt Collection Service Contracts Signed Before January 1, 2021 - How Are They Handled?

Section h Clause 1 Article 6 of the Investment Law 2020 (effective from January 01, 2021) regulates prohibited business lines and sectors, specifically:

Prohibition of debt collection services.

Clause 5 Article 77 of this Law regulates transitional provisions, specifically:

Contracts for providing debt collection services signed before the effective date of this Law shall cease to be effective from the effective date of this Law; the parties participating in the contract are allowed to perform activities to liquidate the debt collection service contract in accordance with civil law and other relevant legal provisions.

Thus, from January 01, 2021, the debt collection service contracts that your company has signed will cease to be effective. Your company and the partner are not allowed to continue executing the contract but must perform activities to liquidate the debt collection service contract in accordance with civil law and other relevant legal provisions.

Sincerely!