Keyword: «consumer credit»

To ensure the stability of the banking system is not only important to have a mechanism to protect consumers as the weakest party consumer credit agreement, but also to improve the mechanism refund arrears. The article presents the concept of «debt collection», showing the features of its implementation despite the absence of a specific law governing the activities of collection agencies. It concludes on the need to improve legislation in this area.

The article examines the debt component of households consumer behavior in modern economy. Based on the experience of developed countries, pre-crisis trends in the personal consumption which were caused by availability of bank crediting to the general public have been identified. The motives and boundaries of consumption are shown through the evolution of theoretical views on consumer choice. The accent is made on the cause-effect relation of the population consumer activity and the use borrowings. The circumstances of « consumption abuse » practice that lead to excessive indebtedness are discovered. The social nature and parameters of households’ debt behavior are characterized. The horizon of life planning and the intensity of consumer borrowing are presented in connection with the financial stability of national economy. The functional significance of the overdue debts collection mechanism is established, its institutional weakness in Russian conditions is noted.