The National Assembly promulgates Investment Law No. 61/2020/QH14, which stipulates that debt trading is no longer a conditional business.
Currently, debt trading activities are regulated by the provisions of the Civil Code.
The right to claim debt is a property right as provided for in Article 105 of the Civil Code. Because it is considered a type of property, the right to collect debt is allowed to participate in civil transactions, in which the right holder is allowed to buy and sell debt with each other.
Article 450 of the 2015 Civil Code also provides for the purchase and sale of property rights:
"1. In case of purchase and sale of property rights, the seller must transfer papers and carry out procedures for transferring ownership to the buyer, and the purchaser must pay the seller.
2. Where the property right is the right to claim a debt and the seller commits to guarantee the debtor's solvency, the seller must be jointly responsible for payment, if the debtor fails to pay when it is due.
3. The time of transfer of ownership of a property right is the time when the buyer receives the papers on the ownership of such property or from the time of registration of the transfer of ownership, if so prescribed by law. ".
Thus, according to the law, an individual or organization has the right to sell debt to another individual or organization. The sale and purchase of debt does not require the consent of the debtor, and the seller is not obligated to notify the debtor that the debt has been sold to a third party.
The law does not stipulate that property rights sales contracts need to be notarized or certified by local authorities. Therefore, the contract of sale and purchase of property rights is notarized or authenticated at the request (need) of the parties.
It can be seen that, from a legal perspective, debt trading is understood as the debt seller transferring part or all of the debt collection right and other rights related to debt collection to the debt purchaser. In essence, debt trading aims to better ensure the interests of creditors in particular and the financial market in general.
