Protesters in Moscow demand terms of their loan agreements to be renegotiated due to the rouble’s weakening. Photograph: Valery Sharifulin/TASS
Radio Free Europe: As Consumer Debt Rises In Russia, Collectors Get Violent
MOSCOW -- Sergei has watched in horror as Russian television has been flooded with harrowing stories about vicious debt collectors terrorizing households with threats and violence in order to recover overdue loans. He worries his family could be next.
In December, the 29-year-old from the southwestern city of Voronezh became one of 11.5 million Russians to fall behind on loan payments, after he was diagnosed with a brain disease that stopped him from earning a paycheck and making payments on two loans. His total debt: $330.
Despite the relatively small sum, Sergei says that he and his friends and acquaintances have been hounded for the past month, received threatening phone calls day and night from thuggish-sounding debt collectors demanding that the money be repaid.
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WNU Editor: In the past 6 months I and my better-off cousins have bailed out 4 of my Russian family members over unpaid debts .... $400, $700, $1,000. and $1,800. The stories that they were telling us .... frightful .... but in the end they were lucky to have us. But in the big picture, this debt crisis is causing a lot of anger and bitterness .... and because it now involves millions of people (who are also not accustomed to personal debt) .... it is impacting Russian politics. A friend of mine wants to run for mayor of a small city outside of Moscow .... and he is at the stage where he is meeting people and talking about the local issues .... and not surprising the number one local issue is the economy. But people are also talking about debt .... and that issue is becoming more and more important as the Russian economy continues to suffer.
Update: On a more optimistic note .... they may be down right now, but this is Russia's future .... Amid recession and predatory officials, Russia's small businesses hang on (Fred Weir, CSM).