Under what circumstances can your salary be garnished due to overdue credit payments? How can you effectively protect your rights and minimize financial risks in such situations? These and other questions were explored by a correspondent from Tengrinews.kz.
A Kazakh woman shared her story in one of the social media groups on Instagram.
"I found myself in a situation where I lost my job. I have multiple loans from several banks. Since I had no way to make payments, I fell behind for about six months. However, I will start a new job next month, and I am worried. Will my salary be garnished 100 percent, or just 50? I am not trying to evade responsibility; I will pay off all my debts. But will I be left with any amount to live on?" - she wondered.
What rules apply to overdue debts
As explained by a correspondent from Tengrinews.kz at the Agency for the Regulation and Development of the Financial Market (ARDFM), banks and microfinance organizations (MFOs) are required to follow a unified procedure for managing overdue debts, regardless of the number of loans the borrower has. According to the rules, creditors must notify the borrower of the overdue payment within 10 days of its occurrence.
"According to new legislation, the notification period for borrowers about overdue payments has been reduced from 20 to 10 days. In the notification, creditors must inform about the necessity of making payments, specifying the exact amount of overdue debt, their right to contact the bank or microfinance organization, and the consequences of failing to meet obligations on loans and microloans. We also want to emphasize to borrowers that if you change your residence or mobile phone number, you must notify your creditor. It is very important to inform the bank or microfinance organization about any changes in contact information," the agency stated.
How to change repayment terms
A borrower may submit a written request to the creditor for loan restructuring within 30 calendar days from the date of the overdue payment. This can be done through digital services or other means specified in the loan agreement.
"To enhance the effectiveness of the pre-trial resolution of problematic debts, new requirements for banks and MFOs were established last year. For instance, if under the law from October 1, 2021, a borrower could approach a bank or MFO with a request to resolve overdue debt within 30 days, starting from January of this year, the regulatory legal act allows borrowers to submit requests to change the terms of the loan agreement, including after the 30 calendar days from the date of the overdue payment. This means the borrower is not strictly tied to the overdue date and can approach the creditor for debt resolution at any convenient time. The new rules also allow borrowers to submit requests for amendments to the loan agreement via the bank's mobile application. However, we recommend documenting the fact of contacting the creditor," said the ARDFM.
The request must state the reason for the overdue payment, such as a decrease in income or job loss; serious illness or disability; maternity leave; or force majeure circumstances (fire, theft of property, etc.). When stating the reasons, all must be documented. The request may also include options for possible restructuring. Additionally, the borrower has the right to independently sell property outside of court within three months. If there is a court decision, this period remains unchanged.
"Since 2021, the unified procedure has allowed the terms of contracts for 1.7 million borrowers to be changed. In 2024, creditors restructured loans for over 420,000 borrowers," the agency added.
When money is deducted from salary
If the debt is resolved, there are no restrictions on the borrower and their accounts. However, some banks include in their contracts the right to "non-consensual deduction" - automatic withholding of up to 50 percent of all incoming funds. Therefore, it is crucial to carefully review all contract clauses before signing.
"If a notarized notice has already been issued or there is a court ruling, the deduction is carried out by a private bailiff. They can impose restrictions, including on all accounts in all banks, seize property, block travel abroad, and even suspend the validity of the driver's license. Additionally, bailiff services are paid - up to 25 percent of the debt amount, depending on its size (the larger the debt, the lower the fee). Therefore, it is better not to let things reach that point and to try to resolve the debt independently.
Deductions are made in an amount of no more than 50 percent of incoming funds until the debt is fully repaid. However, if there is more than one overdue debt, money may be collected further, but with the condition that the borrower retains funds equal to two minimum living standards (92,456 tenge in 2025)," explained the ARDFM.
The creditor may also offer a new loan to cover old obligations, but the debt-to-income ratio must not exceed 50 percent of the borrower's income.
In case of disputes with creditors, borrowers have several options to protect their interests.
"In case of disagreements with creditors, the borrower has the right to appeal to the microfinance or banking ombudsman, whose decisions are mandatory for financial organizations. The borrower may also contact the Agency for the Regulation and Development of the Financial Market to verify the legality of the financial organization's actions," the agency added.
Legal opinion
When it becomes necessary to collect overdue payments through salary deductions, it is essential to remember some legal nuances. Capital city lawyer Daniyar Baigabatov stated that collection and deduction from the debtor's salary is only possible for amounts not exceeding 100 MRP (393,200 tenge in 2025). If the debt exceeds this amount, collection is not possible, and such actions by the private bailiff would be illegal.
As mentioned earlier, when collecting debts from the borrower's salary, no more than 50 percent of their official income can be deducted. For this, the bailiff must first request information about the debtor's official salary from the employer. After obtaining the data, the bailiff issues an order to the accounting department, which is required to withhold half of the salary monthly and transfer this amount toward debt repayment, the lawyer explained.
Previously, we discussed several rules to consider before taking out a loan to avoid financial difficulties later, as well as what to do if a credit default threatens.
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