Management of debt collection services: Is there a need for household registration?

Thu, 14 Feb 2019 13:38:00  |  Print  |  Email   Share:

(Chinhphu.vn) –The request of a person who is responsible for security of debt collection service establishments must have a permanent residence certificate for at least 5 years at the place where the business location is registered completely in accordance with the practice as well as the state management of security of the People's Police force.

Taiga Debt Collection Service Co., Ltd. has been operating steadily for 10 years in Ho Chi Minh City, due to the requirement of renting a house, so the address has changed frequently because the landlords regain ground after a few months or after several years.

Currently, the company has a stable location, so it applies for an operation license of the Branch, but is not granted a license because of the provisions in Article 10 of the Decree 96/2016 / ND-CP: The person who is responsible for security of debt collection service establishments must have permanent residence registration for at least 5 years in districts, towns and provincial cities where they register their business locations.

According to Mr. Nguyen Trung Dung who is a Director of the Company Branch, this provision limits the granting of licenses for debt collection services, and is also inconsistent with citizens' freedom of labor and business specified in the Constitution, the Law on Residence, the Labor Code and the Enterprise Law.

Through the receiving and responding system to people's feedback and recommendations, Mr. Dung would like to request the authorities to review and adjust the household registration conditions for this type of business so that the company can continue to operate. .

Regarding this issue, The Ministry of Public Security responds as follows:

On July 1, 2016, the Government issued a Decree No. 96/2016 / ND-CP regulating security and order conditions for a number of conditional business and investment sectors; accordingly, debt collection service is one of the business and investment sectors with conditions of security. Therefore, only enterprises that meet the conditions prescribed in Article 7 and Article 10 of the Decree are granted a certificate of eligibility for security allowed to operatedebt collection service business.

Article 10 of the Decree No. 96/2016 / ND-CP has regulated the security conditions for debt collection service business as follows: Persons whoareresponsible for security of the debt collection service business establishment must be a person with permanent residence registration for at least 5 years in a district, town or provincial, city where the business location is registered and within 5 years preceding the time of registration businesses not sanctioned by administrative authorities for acts of: Preventing people from performing public duties, disturbing public security, deliberately injuring, lending at illegally high interest rate, gambling, organizing gambling or lingering, humiliating others.

This is a necessary regulation in the process of managing debt collection services, because this is a potential business type with many complicated factors that are easily exploited to violate the law. In fact, in many cases the responsible person is not present at the business when problems related to security occur, causing difficulties in management, investigation and handling process of competent authorities.

Therefore, making a request for permanent residence for at least 5 years at the place of registration of business location for the responsible person is entirely consistent with the practice as well as the state management of securityof the people's police force.

 

By: Online Newspaper of the Government / Translator: HaiYen-Bizic

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