Debt collection service enterprises in Vietnam have the responsibility to return to creditors assets which creditors or debtors have supplied to them

Debt collection service enterprises in Vietnam have the responsibility to return to creditors assets which creditors or debtors have supplied to them (Illustration)

Article 9 of Decree 104/2007/ND-CP clearly stipulates the responsibilities and authorities of debt collection service enterprises in Vietnam as follows:

1. Perform professional activities within the law allowed scope and authorized by the creditor or debtor; not allowed to transfer or re-authorize individuals outside the enterprise or other organizations to perform these activities; except in cases where that organization is also a debt collection service business and the re-authorization must be approved in writing by the creditor or debtor (the party signing the authorization contract with the debt collection service business).

2. Notify the creditor or debtor and other related organizations and individuals that the debt collection service business is authorized by the creditor or debtor to handle the debt.

3. Preserve and return to the creditor or debtor documents and assets assigned to perform debt collection services as per the signed contract.

4. Fully and regularly notify the creditor or debtor about performing the authorized tasks according to the contract.

5. Compensate the creditor or debtor for damages due to contract violations, loss, damage to documents, assigned assets, and assets collected from the debt.

6. Collect the debt and return the collected assets from the debt to the creditor as per the signed contract.

7. Be responsible before the law for violations of the prohibited acts mentioned in Clause 2, Article 11 of this Decree and acts beyond the scope authorized by the creditor or debtor.

8. Issue an introduction letter to employees directly performing debt collection service activities.

9. Issue a staff card to employees qualified to perform debt collection service activities according to the provisions of Article 14 and Article 15 of this Decree. The card must contain a photo, clearly state the name, position of the assigned employee, and bear the company's seal.

10. Request the creditor or debtor provide necessary information, documents, and assets related to the debt.

11. Be paid service fees and other costs by the creditor or debtor according to the signed agreement.

12. Not be liable to the creditor or debtor for issues arising outside the authorized contents.

More details can be found in Decree 104/2007/ND-CP, which comes into effect in Vietnam from July 28, 2007.

Ty Na

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