Having a debt certainly puts us under obligation to pay it off quickly. The lender will be called a lender.
On behalf of the borrower, both the individual and the business body are called debtors. In the process of paying off debt, creditors and lenders are expected to work together to manage the lending so that they can be returned on time.
Bank Loan Product for Debt Payment
These days, applying for a loan to a financial institution such as a bank is a popular choice for most people due to the clearer and more secure procedures. As one of the most sought after products, lending products can help people meet various living needs or pay off debt.
Just mention the different types of loan products such as Credit Units, Multipurpose Credit, Vehicle Credit, People’s Business Credit, and more. The wide selection of bank loan products can be a solution to people’s financial needs. However, what is often a problem is that the loan repayment process is not going well.
As we know it, banks cannot immediately approve your loan application. Generally, there are very stringent procedures and rules that need to be considered. This is certainly not without reason, considering that the risk posed by the bank will be quite high if any of its customers are in bad credit or unable to pay back their debts. Ideally, all parties should cooperate so that no one is harmed.
Beware of Bad Credit Scores
So what if someone can’t pay off their bank or other financial institution? If that happens to you, then you may have a bad score in the eyes of the regulator (Bank Indonesia).
As it is known today, the Financial Services Authority already has The Financial Information Services System works to monitor people’s credit scores. SLIK itself had another name, the Debit Information System. This is Bank Indonesia (BI) is often referred to as BI checking by surveyors or banks.
If an individual is having difficulty paying down their debt or has arrears for a few months, it will be recorded immediately at SLIK. This, of course, will also affect your BI assessment as a borrower. The problem is, if you have a poor VIC rating, then you may have difficulty getting credit access from your financial institution or bank. Especially if you find yourself unable to pay off your debt, then your name will di- blacklist.
The Bank’s Procedure for Dealing with Customer Lending
When it comes to bad credit, there are several procedures that your bank will generally do. In general, banks will manage the problem credit by collecting information first. The bank will then analyze the situation and its concerns until then and then they will take the right action. Here are some common procedures you can do:
Debt Information Collection
The bank will collect information about you as a customer. This will be used as a basis for your bad credit rating. Collection of such information includes:
- Customer-Bank Relationships: Banks will seek information about your relationship with your bank in the past. This is done to determine whether you as a customer can still work together to resolve bad credit issues.
- Management Potential: Then the bank will also learn what your potential as a customer is in managing your finances in the future. Banks will see your potential for the growth of your business, and how your strategies for solving these bad credit problems are.
- Financial Reporting: The bank will then study the financial statements you created, which will be used to analyze what caused the bad credit.
- Strengths and Weaknesses of the Legal Fragment: Not only do we learn about credit-related info, but banks also learn about their legal strengths. As such, it is less likely for banks to take the wrong steps in determining their actions. To be fair, the bank will also study your strengths as a customer in the law. So banks will not be in a difficult position when billing.
- Available Assets: In addition to the five points above, your bank will also study the assets you own. Where necessary, the bank may perform the sale of the asset to settle any arrears or arrears.
The above info should make your bank quickly find out where your bad credit problem is located. The bank will then consider whether this issue can be resolved without or with legal means. The reason is that using legal means can certainly damage the bank’s relationship with the customer.
However, if a search of information is found that the customer is fraudulent and uncooperative with the bank, then the bank will explicitly bring bad credit issues to the legal table.
The Bank Will Call and Submit Debt Collector
The bank will also try to call you on a regular basis to request payment of any outstanding arrears. If this doesn’t work, it will also send the Debt Collector a debt collector. Their services are often used by banks to manage debt payments to run smoothly. The Bank will not resort to using these Debt Collector ‘s services. There are rules that banks must abide by if they are to use Debt Collector services.
One of these is that a new bank can use the Debt Collector’s service if you are a 90-day debt repayment debtor. During the billing process, The Debt Collector is not allowed to threaten or charge with violence, either physically or verbally. This billing period is also arbitrary, which is from 8 am to 8 pm and is not allowed outside of that hour.
The non-litigation action alias workout is a solution to the conflict with communication. This is done to provide understanding between the bank and the customer to save your business activities as a customer. These methods usually include rescheduling, refinement, or restructuring.
If there are still no ways of resolving the issue of existing debt, and if the bank feels the need to bring this bad credit issue to court, then litigation action will be taken. Like passing through a court line or even reporting it to the police.