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Russian Management Companies Seek Right to Transfer Utility Bill Debts to Collection Agencies

Russian management companies are seeking to overturn the current ban on transferring utility bill debts to collection agencies. This proposal has been put forth to the Ministry of Construction and the Speaker of the State Duma.

The head of the Association of Property Management Companies, Lina Tkachenko, has formally requested the ability to transfer these debts. A ban on this practice has been in effect in Russia since 2019.

The proposal has sparked debate among residents. Some suggest that management companies should focus on providing adequate services, like maintaining common areas, instead of aggressively pursuing debt collection. One user pointed out the discrepancy between collecting payments and neglecting essential maintenance.

Another suggestion is to make utility prices more affordable to prevent debt accumulation in the first place. Some commentators argue that collection agencies primarily target vulnerable individuals, while others are not easily intimidated.

Alternative solutions have been proposed, including simplifying the debt recovery process for housing workers. One suggestion involves allowing municipalities to seize and auction off debtor-owned apartments to cover the outstanding utility bills. The remaining funds after debt settlement would be returned to the owner for finding alternative housing. Some users advocate for stricter measures, such as evicting non-payers and even introducing criminal liability for persistent non-payment.