Debt collectors barred from transferring overdue debts to disabled individuals to avoid court fees

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The Russian government has backed a proposal to eliminate tax benefits for certain privileged categories of citizens when suing over consumer loan debts transferred by entities not eligible for such benefits, according to Vedomosti, citing a draft bill from the Supreme Court with amendments to the Tax Code.

Under the new rules, individuals with disabilities (Group I and II), children with disabilities, and disability advocacy organizations will be required to pay court fees when suing over consumer loan debts transferred to them by debt collection agencies. The measure aims to prevent debt collectors from exploiting a loophole by transferring overdue debts to people with tax benefits in order to avoid paying court fees when filing lawsuits.