Debt management model

We advised the leading telecommunications operator on the following project:

MODEL OF DEBT MANAGEMENT BY A TELECOMMUNICATIONS OPERATOR

Mass creditors, including telecommunications operators, are increasingly looking for optimal methods to manage their receivables. We analyzed for our client, a leading telecommunications operator, the planned model of debt management consisting in the assignment of receivables to the bank, including a possibility of entrusting the debt collection activities and taking into account the possibility of blocking the IMEI number.

The use of third-party services by the bank usually involves an agreement in compliance with the bank outsourcing regulations. Therefore, it is indispensable to properly classify the nature of the outsourced activities, in particular to determine whether these are legal activities that would require a permit from the PFSA to be entrusted to the insourcer by the bank. Additionally, it is also necessary to verify whether the services of the insourcer take the form of public cloud services or to determine whether the insourcer uses such services. It may be required to ensure that the collaboration model is consistent with the requirements contained in the announcement of the PFSA regarding the processing of information by supervised entities in public or hybrid cloud computing.

The advisory services of DLK Legal included:

• comprehensive analysis of the planned model of assignment of receivables of the telecommunications operator to the bank, taking into account the Civil Code and regulations on personal data protection,
• classification of debt collection activities entrusted by the bank to a third party on the basis of banking law provisions regulating bank outsourcing and taking into account the requirements of the announcement of the PFSA concerning data processing in public cloud,
• legal opinion with practical recommendations.