credit card debt. can they reposses car as recovery

[uls]

when a bad loan is sold by the bank that means bayad na siya

kung P100 face value ng loan and it's sold for P70 tanggap na ng bangko ung konting lugi

bahala na ung nakabili ng loan paano nila sisingilin and whatever amount masingil nila it's theirs

they don't have to pay the bank they already paid the bank when they bought the loan

[uls]

unless the collection agency did not buy the loan

unless collection agencies are really only companies hired by banks to collect debt

then the money collected goes to the banks minus the fee paid to the collection companies

[uls]

so ang tanong who really owns the loan

is the loan still on the bank's balance sheet or not

[dr. d]

so ang tanong who really owns the loan

is the loan still on the bank's balance sheet or not

when he starts getting nasty calls and messages,
that's probably when the loan is now owned by the collection agency.
heh heh.

i am curious,
magkano ba yung utang?

also,
how important is credit rating?
is it so important that the guy should sell his car to settle the debt?
what about debt re-structuring?
i read that the worst thing one can do, is to run away from the debt...

[uls]

when he starts getting nasty calls and messages,
that's probably when the loan is now owned by the collection agency.
heh heh.

doc, kasi pwede rin the collection agency is only hired by the bank

the bank still owns the loan but they outsourced collection to an outside company


---

Dealing with debts sold to collection agencies and other companies

If you have a debt that's been in arrears, you might find your creditor uses a debt collection agency to chase you for payment, or that they sell your debt on to a debt purchaser.

Debts regulated by the Consumer Credit Act, can be sold on or placed with another company any time after you stop paying, this is a normal part of the debt collection process. This applies to most common types of consumer debt such as a loans, overdrafts, credit cards and store cards, hire purchase and catalogues.

Why do creditors sell debts?
Most creditors specialise in lending money and collecting it. They don’t specialise in chasing debts which are in arrears, or trying to find people who are not paying. Instead they usually employ the services of debt collection agencies or sell the debt on to debt purchasers.

What happens when a debt is sold to a collection agency?
A ‘debt purchaser’ buys up debts to collect rather than chasing debts owned by other companies.

The benefits of selling the debt are that the creditor usually has no more involvement in collecting it, and they get some money back straight away.

Who buys debts?
Some collection agencies may buy debts and also chase debts on a creditor’s behalf.

Creditors will usually sell or ‘assign’ a large amount of debts to a debt purchaser. The debts will be sold at less than their face value, but the debt purchaser is entitled to collect the full balance. This is where their profit comes from.

For example, if a debt of £100 is sold to a collection agency for £70, they’ll try to collect the whole amount and make £30 profit. The amount paid for debts when they’re sold is usually confidential between the creditor and collection agency and it’s unlikely they’ll tell you.

[dr. d]

doc, kasi pwede rin the collection agency is only hired by the bank

the bank still owns the loan but they outsourced collection to an outside company


---

yes,
they either sold the debt to the collection agency, centavos to pesos (xx cetavos for every yy pesos),
or they hired a collection agency to collect, to be paid if the debt is paid.

at any rate,
the CC company is insulated from the so-called unsavory activities by this collection agency.

the question,
how fast does the CC company usually take, to pass on the debt collection to the collection agency?

may na-kuwento kasi,
the debtor was talking to the CC company, and he was advised na "wala na po samin ang utang ninyo dahil nai-bigay na po namin sa agencia; sila ang kausapin ninyo"...

googling US figures,
debt collection agencies buy these debts at 4% of the actual amount.
and their effectiveness of collection is 20-30%.
i wonder, is this the same in the philippines?

[uls]

yes,
they either sold the debt to the collection agency, centavos to pesos (xx cetavos for every yy pesos),
or they hired a collection agency to collect, to be paid if the debt is paid.

at any rate,
the CC company is insulated from the so-called unsavory activities by this collection agency.

the question,
how fast does the CC company usually take, to pass on the debt collection to the collection agency?

may na-kuwento kasi,
the debtor was talking to the CC company, and he was advised na "wala na po samin ang utang ninyo dahil nai-bigay na po namin sa agencia; sila ang kausapin ninyo"...

not sure pero 180 days delinquent yata pinapasa/ina-assign na sa collection agency or binebenta

[uls]

googling US figures,
debt collection agencies buy these debts at 4% of the actual amount.
and their effectiveness of collection is 20-30%.
i wonder, is this the same in the philippines?

grabe i was way too generous to say delinquent cc loans are sold for 70 cents

inisip ko kasi parang bonds

4 cents?!

[_Cathy_]

Kumita na sila sa pagbenta ng delinquent accounts meron pa sila cut sa na collect ng CA.


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Kapag binenta na account mo sa collection agency, wala na pakialam bank dun. The agency owns that account na

unless the collection agency did not buy the loan

unless collection agencies are really only companies hired by banks to collect debt

then the money collected goes to the banks minus the fee paid to the collection companies

Yes, the delinquent account is either ENDORSED OR SOLD to a collection agency. Kapag endorsed dito papasok yung sinasabi ni shadow na may makukuha ang bank, pero pag SOLD wala ng pakialam bank dyan

Alam ko they also offer discount & sometimes x # of months to pay.

Yes they do

the question,
how fast does the CC company usually take, to pass on the debt collection to the collection agency?

may na-kuwento kasi,
the debtor was talking to the CC company, and he was advised na "wala na po samin ang utang ninyo dahil nai-bigay na po namin sa agencia; sila ang kausapin ninyo"...

We have what we call "buckets" sa collections department sa bank. DPD = days past due

30 dpd, 60 pdp, 90 dpd then last is legal. Kapag sa legal hindi pa rin naka collect, endorse na yan sa collection agency

Kaya like what I mentioned, I always advise these delinquent cardholders to settle their debt BEFORE it is passed on sa agency

[Walter]

when a bad loan is sold by the bank that means bayad na siya
kung P100 face value ng loan and it's sold for P70 tanggap na ng bangko ung konting lugi
bahala na ung nakabili ng loan paano nila sisingilin and whatever amount masingil nila it's theirs
they don't have to pay the bank they already paid the bank when they bought the loan

That's too high ... industry standard is around 10 cents to the dollar ... collection agencies make money when they are able to collect 20% of the purchased delinquent loans ... when they reach their quota, they let go of the small loans wherein the cost of litigation isn't worth the amount of loan ... you could haggle up to 50% of principal loan and they might bite ... assuming they've reached their 20% quota ...

[uls]

That's too high ... industry standard is around 10 cents to the dollar ... collection agencies make money when they are able to collect 20% of the purchased delinquent loans ... when they reach their quota, they let go of the small loans wherein the cost of litigation isn't worth the amount of loan ... you could haggle up to 50% of principal loan and they might bite ... assuming they've reached their 20% quota ...

yup i was too generous

[shadow]

yup i was too generous

Basta wala na ako pakialam diyan kung magkano if I'm a delinquent they bought my bulok account eh di manigas sila, wala sila masingil sa akin. [emoji23]

And besides kung mag habol sila for sum of money eh kung wala na nga ako talaga pa bayad, ano magagawa nila? Kunin nila electric fan saka gasul sa bahay then liquidate nila?

At the end of the day sigurado naman talo ka pa rin sa court dahil meorn kang utang so sabihin saiyo magbayad ka then siguro sabihin ng judge na magusap kayo kung magkano monthly baka alisin pa ng judge yun mga interest and charges.


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[shadow]

That's too high ... industry standard is around 10 cents to the dollar ... collection agencies make money when they are able to collect 20% of the purchased delinquent loans ... when they reach their quota, they let go of the small loans wherein the cost of litigation isn't worth the amount of loan ... you could haggle up to 50% of principal loan and they might bite ... assuming they've reached their 20% quota ...

Sino mag demanda? The CA? I haven't read anything pa na CA ang nag sue for sum of money it's always the bank.

kaya nga lagi nila sinasabi diba client nila yun bank?


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[uls]

Sino mag demanda? The CA? I haven't read anything pa na CA ang nag sue for sum of money it's always the bank.

kaya nga lagi nila sinasabi diba client nila yun bank?

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2 klase

meron ung CA hired by bank to collect (the bank still owns the loan) -- so client ng CA ang bank

meron naman ung the CA bought the loan so labas na ang bangko diyan

[shadow]

2 klase

meron ung CA hired by bank to collect (the bank still owns the loan) -- so client ng CA ang bank

meron naman ung the CA bought the loan so labas na ang bangko diyan

So mag demanda ang CA? They won't go to that extreme. They will just move on to the nexr account and so on hangang meron sila matakot magbayad.

Basta premise is walaa na mawawala sa akin dahil wala na ako talaga pangbayad ha. I will not wasye my time with them.

Kung yun bank na sa kanila ako may utang eh hinde na din interesado eh.

Kung hinde ako natakot hinde magbayad sa bank eh di mas lalo ako hinde matakot sa mga CA.
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[uls]

ung maliit na halaga hindi talaga magdedemanda coz they'll be spending more on the case than the amount they want to collect

[shadow]

ung maliit na halaga hindi talaga magdedemanda coz they'll be spending more on the case than the amount they want to collect

Paper win lang mangyayari diyan dahil wala na talaga pangbayad yun delinquent account.

Panalo nga sabihin magbayad eh wala na talaga pangbayad ano gagawin nila mag demanda ulit? They can settle ₱100/ month kung yun lang kaha ibayad


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[_Cathy_]

Bank din mag request diba and not the CA?

And pag mag sue talaga si bank din and not the CA diba?

If it is then mas lalo ako hinde magbayad at makipagusap sa mga CA.


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Yes, it's the bank that submits your name sa BAP bago mapunta sa CA

Yung delinquent account nga either

1. Endorsed to a collection agency
2. Sold to a collection agency

Pareho lang kami explanation ni ULS. Kapag sold na wala ng pakialam bangko

Bakit pag sa bank willing to pay ka pero sa CA hindi?

2 klase

meron ung CA hired by bank to collect (the bank still owns the loan) -- so client ng CA ang bank

meron naman ung the CA bought the loan so labas na ang bangko diyan

[shadow]

Bakit pag sa bank willing to pay ka pero sa CA hindi?

CA bought my bulok account, delinquent, estapador na nga ako and they expect na magbayad ako sa kanila? Hinde na nga ako nagbabayad sa mismong meron akong utang talaga eh sa kanila pa kaya. [emoji23]


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[uls]

CA bought my bulok account, delinquent, estapador na nga ako and they expect na magbayad ako sa kanila? Hinde na nga ako nagbabayad sa mismong meron akong utang talaga eh sa kanila pa kaya. [emoji23]


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meron kasi mga napapabayad ng utang pag tinatakot o pinapahiya hehe

business model ng CA