Credit Card Debt Collection
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helping a friend ask: He owes credit card company a small amount of money which has been owed for a few months. He intends to pay it off this month end (he just found a job only) Because he so happened to changed his number and also gan qiao moved house (not because of the debt) he decide not to update the bank as he knows just awhile more he will be able to pay all he owes. Problem is..Will the debtor go to his company to look for him?? Its a new job, will they be able to find out where he work? Through what sources? CPF? Many Thanks.
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just give him this piece of advise: pay up and move on with life. why want to sneaky about this. his credit rating will be at stake next time. regardless of where he is in singapore, he will be found out.
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I think you should read my post properly.
1) he has NO money to pay TIL this month end
2) He DID not move house nor change number cos of this debt
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Originally posted by ButterCake:
I think you should read my post properly.
1) he has NO money to pay TIL this month end
2) He DID not move house nor change number cos of this debt
I think you should humble yourself if you're here for help.Simple solution to a simple problem - call up the bank, be frank 'bout the current situation and be sure to pay off the debt at the end of month. He can choose to update or not to update the bank regarding his change in address.
And reddust hit the nail on the head on credit rating thingy, it does affect his credit rating to a certain extent. Maybe any bros' or sis' working in a bank could advise?
Cheers
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It depends on the field of work he is in. Employers do conduct credit background checks so best to keep it good, and keep it stable.
Regardless of whether it's safeguarding credibility or concern for face saving issues at work, he should still give credtors a call.
I doubt the bank will call up his company on his very first month. Can't say the same for his second. Someone who works in a bank should be able to advise better. But I won't be surprised if they hire debt collecting agencies to do the deed.
From what I know, with your IC number, most banks have access to all your credit information in all other banks locally, but no direct access to CPF contribution made to your account.
Since he's going to pay up at the end of the month no matter what happens, why ignore the huge elephant and worry about what's going to happen? Might as well take control now, assess the toll it's taking, be upfront about how he plans to settle the debt before the next paycheck arrives.
The last thing he needs now is accumulate more fines, interests and the most important thing is for him to take control of his own finances. Debts and bad habits snowball very easily and the last thing he wants is being backed into a difficult corner.
redDust and detached are both spot on. Your friend needs to safeguard his credit rating. If I were you I'll advise him to make the best out of a shitty situation by protecting this credit. He'll never know if one day this credit will save his ass.
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I am working in a certain field that does debt collection for banks at times.
Buttercake, when you mention small amount, how small is small?
In fact, if your friend does not update the bank with his new address, put yourself in the bank's shoes, does it give you the impression that he is evading his debt?
Banks are commercially-orientated, none of them likes to force people to the corner, what they concern is that they able to get the monie back. As Detached had mentioned, ask your friend to call up the bank and explain to the bank the situation. Sometimes if the 'small amount' you mention is not small, probably can negotiate to pay them in more installments but that of course you have to consider the interests that would be incurred.
There are ways to find out where you stay if you moved house.
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ask him to update the bank that he will pay end of the month
if he cannot do a one time payment, the bank is ha
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how much is the outstanding?
if less than 5k, the bank wont bother but his credit rating will suffer
if more than 10k, ask him to update the bank that he will pay end of the month
if he cannot do a one time payment, the bank is happy to accept a one time payment of at least 50% of outstanding amount and the remainding balance can pay by installments (inclusive of interest) or wait 5 years, then the bank will be happy if he pay 50% of outstanding but the bank will outsource debt collectors to hound him.
if more than 50k, the bank might declare him a bankrupt
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Originally posted by ButterCake:
helping a friend ask: He owes credit card company a small amount of money which has been owed for a few months. He intends to pay it off this month end (he just found a job only) Because he so happened to changed his number and also gan qiao moved house (not because of the debt) he decide not to update the bank as he knows just awhile more he will be able to pay all he owes. Problem is..Will the debtor go to his company to look for him?? Its a new job, will they be able to find out where he work? Through what sources? CPF? Many Thanks.
There is no such thing as 'gan qiao' to the bank because I believe too many people have pulled this stunt on them.He should been responsible and just update the bank because his actions show to them that he is trying to run away.
Just inform the bank and he don't need to worry so much
Just 1 simple step and it's so difficult?
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Originally posted by ChiBet:
how much is the outstanding?
if less than 5k, the bank wont bother but his credit rating will suffer
if more than 10k, ask him to update the bank that he will pay end of the month
if he cannot do a one time payment, the bank is happy to accept a one time payment of at least 50% of outstanding amount and the remainding balance can pay by installments (inclusive of interest) or wait 5 years, then the bank will be happy if he pay 50% of outstanding but the bank will outsource debt collectors to hound him.
if more than 50k, the bank might declare him a bankrupt
More than 10k is eligible to make him bankrupt...
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If the amount has exceeded your friends credit limit, there is likely hood that the bank can simply engage their lawyers to send your friend a nice little letter about that debt.
The legal firm will simply do a search for hsi registered address and resend that letter to your friend,.
Take note, that your friend need to update his address for his NRIC whithin 2 weeks of his move. Failing to do so will be a very obvious attempt to avoid being detected in Singapore.
Also take note, besides the interest on the debt, engaging the legal firm fees are added to the debt and we are talking about at least 100% of the debt.
Lets say you owe 6k, the legal fees will be charged at 4k and the extra charges added on to another 8k within 6 months.
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Originally posted by yamizi:
More than 10k is eligible to make him bankrupt...
to my knowledge, it cost more than 10k to declare someone bankrupt. again, my info could be outdated as i know of this while i was still working as a debt collector for american express bout 4/5 years ago -
Originally posted by viciouskitty74:
If the amount has exceeded your friends credit limit, there is likely hood that the bank can simply engage their lawyers to send your friend a nice little letter about that debt.
The legal firm will simply do a search for hsi registered address and resend that letter to your friend,.
Take note, that your friend need to update his address for his NRIC whithin 2 weeks of his move. Failing to do so will be a very obvious attempt to avoid being detected in Singapore.
Also take note, besides the interest on the debt, engaging the legal firm fees are added to the debt and we are talking about at least 100% of the debt.
Lets say you owe 6k, the legal fees will be charged at 4k and the extra charges added on to another 8k within 6 months.
from experience, most of these so called lawyer letters are fake as banks will not waste $$$ to send lawyer letters (about $150/copy) to people that may not pay them back -
Just inform you moved, explain situation and tell them u will pay them back end of the month or fix a payment mode satisfactory to both lor. I'm sure yer fren dun wan debt collector annoying him, his family or his colleagues ma. My fren working as debt collector and i can tell u they are damn persistent.
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Originally posted by ChiBet:
how much is the outstanding?
if less than 5k, the bank wont bother but his credit rating will suffer
if more than 10k, ask him to update the bank that he will pay end of the month
if he cannot do a one time payment, the bank is happy to accept a one time payment of at least 50% of outstanding amount and the remainding balance can pay by installments (inclusive of interest) or wait 5 years, then the bank will be happy if he pay 50% of outstanding but the bank will outsource debt collectors to hound him.
if more than 50k, the bank might declare him a bankrupt
If it accumulated more than $10000. can declare a bankrupt. Once a person discharged from this bankruptcy, the record is going to be with the person for next
six years. Bankruptcy mean the person only paid some amount of the debt, not the total amount of the debt. Debt collectors also need to adhere to regulation, they cannot simply suka2 go to person's house or office to pester the debtor, there is agrey area called harrasment.
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Originally posted by ChiBet:
from experience, most of these so called lawyer letters are fake as banks will not waste $$$ to send lawyer letters (about $150/copy) to people that may not pay them back
Lets just say I was recently with a legal firm, and those letters are very real. Plus their services adds yup to your original debt.My scenerio is very real. I owe $$$, they added all the penalty fees, legal letters fees, searches, attempts at court to file papers and even transportation fees of their office boys. It can easily come up to 4-5k that may add to your original debt to process you bankrupt.
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Originally posted by viciouskitty74:
Lets just say I was recently with a legal firm, and those letters are very real. Plus their services adds yup to your original debt.My scenerio is very real. I owe $$$, they added all the penalty fees, legal letters fees, searches, attempts at court to file papers and even transportation fees of their office boys. It can easily come up to 4-5k that may add to your original debt to process you bankrupt.
Very true...
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People, be mindful to always pay up your credit cards in full and on time every month.
24%p.a. is huge!
If you take $5000 and compound it for 25 years at 24% every year, you would have $1,082,709.96. Banks thrive on credit cards!
As an investor, if I can compound my investments at close to 20% every year without fail, I would be sitting with the great investors of our time. eg. Warren Buffett, Peter Lynch, William O'Neil, George Soros...etc
You only need 1 or 2 credit cards with you. I'm sure not everyone utilises all the services and discounts provided from their credit cards. Having more than that, you are just paying yearly credit card fees. Would be best if you call up and have it waived.
Sometimes when I see people having multiple credit cards, I dont think that they are rich, just money tree for banks. A money conscious or a rich person wont have multiple cards with them.
Being rich starts from living within your means. -
Well said!
That is why I always say "cash is king", I'd rather have an ultra fat wallet (like I always do
), do without the whatever services and discounts and be debtless at end of the month!TS, do update us regarding your friend's plight.
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If the debt is about 2k. How will the bank find out his new company ?