The new law prohibits management and resource supply companies, HOAs and local governments from assigning the right to collect debts for utilities to third parties

Russian President Vladimir Putin has signed a law banning the assignment to third parties, including collection agencies, of the right to collect debts of citizens for housing and communal services (housing and communal services). We are talking about expanding the list of persons who cannot assign the right to repay debts for utilities. These include landlords of social housing.
Amendments have been made to Article 155 of the Housing Code. According to the law, if a landlord has sold utility debts to a collection agency, the transaction will be declared void. It is also impossible to issue a power of attorney to collectors for debt collection.
Almost five years ago — in the summer of 2019 — the Russian parliament passed a law that prohibited management companies from attracting collectors to collect funds from residents for utility debts. Despite the fact that, according to current legislation, only professional participants in the housing and communal services market themselves could deal with collection, some CC and HOA circumvented the law by issuing notarized powers of attorney to collectors to collect debts.
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In the spring of 2023, the head of the Ministry of Construction of Russia, Irek Fayzullin, instructed housing inspectors and heads of regions to monitor charges for housing and communal services. According to the head of the ministry, the next planned indexation of tariffs is scheduled for July 1, 2024.
See also:
- Russians were allowed to pay for recalculation of household needs in parts
- Postponement or write-off: what to do if you have accumulated a debt on a communal apartment
- Dirt and poor-quality service: how to change the management company in the house
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