2024-11-01 Law Amendments: How They Change Debt Management

Amendments to the Law on Consumer Protection Effective November 1, 2024: How They Affect Debt Management

As of November 1, 2024, new amendments to Article 61 of the Consumer Protection Law of the Republic of Lithuania came into effect, which directly impact the processes of supply of goods and/or services and debt management. These amendments require suppliers to take additional actions before transferring debt management to third parties.

In light of these changes, we, as a debt recovery company, would like to provide you with important information that may be useful for your future decisions:

Mandatory Notification to the Consumer – Before transferring the right to claim or debt management to a third party, the supplier must notify the consumer about this no later than 30 days before the transfer. This notification must include:

• The basis of the debt (contract, invoice, or other document);

• The amount of the debt, including the principal, interest, penalties, and any other possible sums;

• The repayment deadline, after which debt recovery may begin;

• Information about the debt recovery service provider, including their contact details.

Notification Form – The notification must be provided in clear and understandable language, in paper or other durable format, so the consumer can easily review all necessary information. The simplest way to send this information is through a confirmation email.

Transfer Process – If the consumer does not pay the debt by the specified deadline, the supplier may transfer the right to claim or debt management to a debt recovery company. However, this can only be done 30 days after notifying the consumer about the debt.

As a team of legal professionals, we remain ready to advise and help ensure that all debt recovery procedures are conducted legally and in accordance with the latest regulations.

P.S. If you have not yet established a notification system in accordance with the new law, we recommend doing so as soon as possible to avoid potential legal consequences. Please let us know if you need help in preparing the debtor notification system.

We have attached a link to the law: https://e-seimas.lrs.lt/portal/legalAct/lt/TAD/TAIS.6020/bleebcLPBB

If you have any questions about these changes or would like to consult on your debt management, feel free to contact us by phone or email.