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Banks double down on collection

Credit: Vladimir Trefilov | RIAN

Last year, Russian banks doubled their use of collection services to recover debts from customers, according to the First Collection Bureau and the National Association of Professional Collection Agencies.

In 2019, the banks sold twice as many debts on recently issued loans to collectors than the year before, Regnum reports. If previously some 6.2% loan debts had been taken over by collectors, the share reached 13.3% last year.

Last year, the banks offered outstanding debts worth a total of RUR 399 bln ($6 bln) to collectors, which is even lower than in 2018. However, the amount of debt eventually sold reached RUR 303 bln ($4.5 bln), which is significantly higher than the year before.

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