Chapter 2. Observing economic rights 59 Example At the same time, the financial institution did not warn the applicant in due time of such artificial debt and liquidation of the bank, transferring the rights of claim under the loan agreement in the amount of UAH 3,900 and personal data of L. to the debt collection company. The applicant refused to pay this amount and thus, debt collection company continued to demand payment of non-existent debt by unlawfully increasing the amount of claimsup to UAH 74,000, using psychological pressure in the form of threats and blackmail. As a result of the measures taken by the Commissioner, a systemic problem has been identified that requires legislative regulation – a state regulator should be granted the authority to regulate debt collection activities of debt collection companies It should be noted that the Law of Ukraine “On Financial Services and State Regulation of Financial Service Markets” #2664-III of 12 July 2001 establishes only the legal framework for the protection of the rights and interests of clients of financial institutions and private entrepreneurs who provide financial services, but does not cover all aspects of such activity, including the methods of debt collection. In their appeals to the Commissioner, citizens report interference of debt collection companies with their private lives, moral and physical pressure. Example Citizen Ch. from the city of Vinnytsia reported to the Commissioner the violation of her rights by representatives of debt collection companies that demanded her to pay money under loan agreements, which she did not enter into. Representatives of the debt collection company put moral pressure on the applicant, threatened her and her family with physical violence. Following the violations identified, the Commissioner referred the appeal to law enforcement agencies requesting them to verify the facts of threats and possible violence by the representatives of the debt collection company against the applicant and her family. The Commissioner requested the debt collection company to immediately terminate violations of the rights of consumers of financial services and do not commit them in its further activities. The Draft Law of Ukraine “On Protection of the Rights and Legal Interests of Debtors in Collecting Activity” was submitted to the Verkhovna Rada of Ukraine (reg. #2133 of 12.09.2019). It was adopted on 12.12.2019 as the basis in the first reading. CHAPTER 2 The Commissioner was contacted by citizen L. from the city of Zhytomyr, a retiree by age. The applicant alleged that she had timely fulfilled the terms of the loan agreement with the financial institution, but the last payment she had paid had not been credited to the creditor’s account due to the deterioration of liquidity and the subsequent insolvency of Khreschatyk Bank that served the creditor.