The Federal Bailiffs Service (FSSP) has reduced the transfer of debt collected in favor of debt collectors. Representatives of collection agencies, MFIs and banks, who gathered for a special congress, complained about this problem. For many collection agencies and MFIs, bailiff revenues accounted for up to 90% of working capital, and delays in the transfer of funds could lead to some of them leaving the gray area.
In the second half of March, professional debt collectors – collection agencies, MFI debt collection agencies and banks – faced the suspension or delay in the transfer of debts collected by bailiffs. This problem was discussed by market participants on April 1 at a professional congress. At the same time, the FSSP does not send any notifications to market participants, and, as Dmitry Ushakov, Deputy Head of the Department for Work with Public Authorities of VTB, stated at the congress, they are in an “information vacuum.” The FSSP was unable to respond to Kommersant’s request on Friday.
Debtors work through bailiffs if they have a writ of execution, that is, after debt collection in court. The executive document can be presented to the debtor’s bank account, but most often it is less effective, explains the managing partner of the law firm “Zamoskvorechye” Dmitry Shevchenko. All calculations of the FSSP on executive documents in favor of the debt collector are made through the treasury system.
According to Elman Mehdiyev, President of the NAPKA SRO, about 60 companies appealed to him and to industry associations in an attempt to obtain clarification on the work of enforcement in the current conditions.
According to him, the volume of transfers to financial market participants from the FSSP on enforcement proceedings for the period from March 18 decreased by 50-70% (for collectors), by a third (for MFIs), to 5% for systemically important banks. According to Mr. Mehdiyev, on average, the financial market receives about 120 billion rubles a year in transfers from bailiffs. Thus, we can estimate the losses of the industry for the second half of March in the amount of up to 5 billion rubles.
For many companies, especially collectors, revenues from enforcement are up to 90% of working capital, for MFIs the amount of such revenues is comparable to the size of the payroll, said the congress participants. It is not clear where and for how long the funds withheld by the FSSP will be, who will reimburse the losses of companies, says the deputy director of the SRO “MiR” Eugene Suchotsky. Evgeny Senkovsky, director of Rosbank’s overdue debt department, said that since March 11, the bank has been facing a suspension of bidding by the FSSP and the transfer of movable and immovable property to the balance sheet. Bailiffs refuse to communicate with the bank and go to the debtor to seize property, he said. The situation looks as if the enforcement actions on the cession as a whole have been suspended, says Pavel Mikhmel, managing director of the PCB. “This will make it impossible to clean the balance sheets of banks and MFIs from toxic assets,” he warns.
It is difficult to judge the true reasons for the decline in FSSP activity.
To a large extent, these phenomena may be related to the restrictions imposed on transactions in favor of non-residents and organizations in which non-residents may have a share in the capital, Pavel Ickert, managing partner of Ickert & Partners, told Kommersant.
“If the FSSP does not have reliable information about the absence or presence of such, formally it may not operate in favor of the creditor,” – concludes the lawyer.
Cession market participants will have to rethink their business models. “The priority will be the purchase of bank debts with a long maturity. Within the framework of working with such portfolios, the delay of 6-8 months is not so critical and may simply be a negative factor in the assessment, ”Alexander Danilov, General Director of the online auction for the sale of Debex debts, told Kommersant. At the same time, the delay of MFIs may suffer more – its valuation may be more discounted, and the circle of buyers will be significantly narrowed, as “most agencies worked out MFI portfolios mainly through the FSSP,” he said.
Reducing and postponing transfers from bailiffs can lead to the withdrawal of many small and regional players. “It is still impossible to give an accurate assessment of the situation. There are several scenarios, but in most of them the winners will be those who work outside the legal field, “Mr. Mehdiyev told Kommersant.