Banks Collecting Debts

Temporarily suspend repayment of the loan principal and pay interest only (restructuring). Almost all banks in this go. 3. Their services as employee. 4. Lease of the collateral or other property. Because the bad loans have become a social problem, the banks also have hard times.

How did banks operate to collect debts? 1. First, the credit officer trying to negotiate or realize the collateral. 2. If you did not, the security service verifies that the borrower or guarantor other property. 3. Debt may be referred for collection the collector (see below). Debt can be transmitted collector only if the loan agreement on this so stated. 4.

It should appeal to the court. If the borrower has any assets, the bank will charge its own. If the property is not, the claim will be filed for a tick. After winning the case, the debt will be written off. 5. Simultaneously with the filing fees the bank to seize property of the debtor and the guarantor. The property will be removed after winning the case and put up for sale. How do collectors to collect debts? 1. Informal methods (threats, destroying property, the arbitrariness of the authorities) are used very rarely. 2. Psychological pressure – calls late at night and early morning (the time within the law), a sinister personality at the door or a car (no crime), etc. 3. Pressure on others – calls to friends, parents at work. What you need to keep in mind when negotiating? 1. Loan default – it does not stain on your conscience, and not a blow to the reputation, as usual economic process. So we should not cry at night and concentrate on solving problems and negotiate. 2. Agree always advantageous to both parties. 3. Bank does not need your property – it will need to use or sell. 4. Show emotion is useless – you deal with clerks who do their job. Tears and tantrums, they have seen enough. 5. Believe in the word can not be anyone – clerks will not be noble, or keep word. All agreements must be recorded on paper. 6. Time is working against you – if overdue bank is obliged to reserve the same amount, in fact, withdraw it from the business. 7. Sue can be very long – the courts swamped with lawsuits to recover the debt, a skilled lawyer can delay the process a couple of years. 8. Courts almost always side with the borrower – to charge a minimum. 9. After the entry into force of the court evasion of repayment of the loan becomes a professional offense. This is a very strong trump card for the bank. 10. Even if it comes to losing in court – life is not over. If you have something to recover – it will charge. If not – the bank will write off losses and leave you alone.