Some individuals or businesses are still wondering about the “DEBT COLLECTION RIGHTS”. So how is the use of the services of the debt collection company and the transfer of the right to collect debt is regulated in the legal system of Vietnam? Let’s find out with Song Bao Debt Collection Services Co., Ltd. This will be quite useful information for “CREDITORS”.

What is “debt collection rights”?

The right to reclaim a debt or in particular the “right to reclaim the property” is prescribed in Clause 1, Article 166 of The 2015 Civil Law. “The owner or the other right to the property has the right to reclaim the property from the possessor, user of property, person benefiting from property without legal grounds.” In which, “Property” is specified as objects, money, valuable papers and property rights in Article 105 of the 2015 Civil Law.

Article 115 of the 2015 Civil Law stipulates that “Property rights” are rights with monetary value, including property rights to intellectual property rights, land use rights and other property rights. In short, property rights are essentially the rights of an owner with respect to an asset that can be exchanged for money, in terms of property, the property right is an intangible asset.

In the Civil Law 2005, Article 322 has the provisions: Property rights used to ensure the performance of civil obligations, including that “Debt collection right” is an asset rights used to ensure the performance of civil obligations. Thus the owner of property rights has the right to reclaim the debt and has full authority to make decisions about this property.

How is the use of the services of the debt collection company and the transfer of the right to collect debt is regulated?

Under the provisions of civil law, when the payment is due, the debtor must transfer the object, transfer the right, and pay the money or valuable papers according to Article 274 of The 2015 Civil Law. If the debtor does not pay all of the debts to the creditor, the creditor has the right to buy and sell the debt collection right or transfer the debt collection right to another entity.

The Vietnamese law regulates for mortgage of debt collection rights, purchase and sale, and transfer of debt collection rights as follows.

The transfer of the debt collection right in The Civil Law 2015 prescribed in Article 365 “Transfer of the right to demand” .The creditor may transfer the debt collection rights to the representative notify in writing to the debtor. Unless the creditor and the debtor agree otherwise or the law otherwise provides that the debt collection right may not be transferred.

Also in The Civil Law 2015, Article 450 “Sale and purchase of property rights” in Clause 2 is stated. “Where the property right is the debt collection right and the seller is committed to ensuring the solvency of the debtor, the seller must be jointly responsible for payment, if the debtor fails to pay in due days”

Decree No. 163/2006 / NĐ-CP dated December 29, 2006, stipulating that “Security transactions with provisions on debt collection rights in Article 22” Mortgage of debt collection rights “is as follows.

Party with debt collection rights: may mortgage a part or the whole of the debt collection rights, including the debt collection rights formed in the future without the consent of the debtor.

Party who receives the mortgage of the debt collection rights has the following obligations:

1. Request the debtor to pay the debt when it is due and the debtor fails or fails to perform it fully.

2. Provide information on the mortgage of the debt collection rights that the debtor requires.

Party has debt repayment obligations:

1. Payment to the party who receives the mortgage of the debt collection rights according to Point a, Clause 2, Article 22 of this Decree

2. To request the party who receives the mortgage of the debt collection rights to provide information on the mortgage of the debt collection rights. If information cannot be provided, it has the right to refuse payment to the party who receives the mortgage of the debt collection rights.

Thus, the debt collection right is allowed to be mortgaged, bought or sold or transferred rights to the debt collection company. However, the “mortgage of debt collection rights” is very likely to cause disputes between the parties due to unclear legal basis. So the party who receives the mortgage of debt collection rights needs to research and consider carefully.

If you have any questions about debts that you cannot resolve, please send mail to songbao@sbdebtcollection.com or contact 1900 63 62 13 we will respond to your questions and offer advice as soon as possible.