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[Частный детектив Нижний Новгород]

It is beneficial for banks to hire collectors

Posted by Sergei Shpeter, Senior Vice President, Business Development Director, Bailiff Debt Agency

This year, banks are actively issuing loans to borrowers. In direct proportion to the growth in the number of loans, the percentage of overdue loans is also increasing.

According to the latest data from the Central Bank of the Russian Federation, the volume of loans issued by Russian banks to individuals in January-August 2011 increased by 19.6% compared to the beginning of the year and amounted to 4.887 trillion rubles as of September 1. As of September 1, loan arrears amounted to 296.8 billion rubles, an increase of 5.1% since the beginning of the year.

The volume of overdue debt in relation to the total amount of loans issued decreased by September 1 to 6.1% from 6.9% at the beginning of the year.

If we talk about the outsourcing market, the portfolio has become noticeably older. His average age is still over 400 days. The portfolio aging is especially noticeable in the segments “car loans” (from 450 days in 2010 to 810 days in 2011), “mortgages” (from 1140 in 2010 to 1300 in 2011) and “credit cards” (from 415 to 580 days).

In terms of consumer loans, he became younger. There were no significant changes in the “non-targeted loans through a bank branch” segment.

However, according to analytical data, in the segment of early delinquency (less than 1 year), the portfolio was significantly younger, which indicates a reduction in internal banking costs and the effectiveness of the work of external collection agencies. Banks over the past year have compared the performance of their own debt collection service and external collection service with respect to dealing with early arrears. Now they also understand that it is much more profitable to hire an external agency, rather than increase the costs of doing business.

According to the results of 9 months of 2011, the average amount of debt increased and amounted to 185,000 rubles (140,000 according to the results of 9 months of 2010). Its increase is associated with the “aging of the portfolio” and a change in the ratio of the debt structure in favor of overdue interest, fines and penalties, which are much more difficult to collect.

Speaking about the effectiveness of foreclosure, the market demonstrates its negative change. If in 2010 the average efficiency indicator was 16%, then in 2011 - 10%.

Main reasons:

- banks, initiating lower interest rates, limit the ability of collectors to apply intensive portfolio processing methods;

- the portfolio is old, recovering interest, fines and penalties is much more difficult than the main debt itself.

- the volumes of issue have not yet reached the pre-crisis level and old accounts prevail in the structure of the transferred debt. As soon as the balance changes in the direction of a more recent delay (trends that are observed in the market now), the performance indicators will increase.

I would like to highlight the topic of sale of debts. In 2011, retail loans (excluding mortgages) for a total of $ 2 billion were put up for sale. The market for the sale of debts remains volatile. Mostly market participants are TOP-100 banks and no more than 10 agencies that represent various investors. There is still a gap between the price of waiting and closing the transaction, which is 35-40%.

The main reasons for this discrepancy:

- Incompleteness of the information provided by banks necessary for a correct assessment: the seller should disclose as much as possible information on servicing the portfolio both before and after reaching the delay, on working with the portfolio of both the internal collection service and the external agency. Information on the portfolio that is passed on to collectors / investors for evaluation should include the structure of the debt, its term, types of loan products, and recovery stages;

- Unwillingness of banks to conduct a full due diligence by the agency (telephone test, verification of documents on a sample of the agency);

- The unwillingness of banks to agree on an agreement with an investor who invests and assumes the main financial risk.

And finally, one cannot but touch upon the legislative aspects, which in one way or another will affect the activities of banks and collectors. Last month, the Supreme Arbitration Court put an end to the dispute over the legality of banks transferring debt to collection agencies. According to the Decree of the Presidium of the Supreme Arbitration Court No. 146 dated September 13, 2011, a bank’s assignment to a person who does not have the status of a credit organization that is not fulfilled on time under the loan agreement with a citizen borrower does not contradict the law and does not require the consent of the borrower.

Also, the position of YOU requires adjustment in the judicial and executive work of banks, as Now any proceedings of the bank with the borrower - an individual - can take place only at the place of registration of the borrower. Now the bank needs to choose: either increase personnel costs, technical equipment, additional workplaces, employee business trips, or contact a professional collection agency with a wide branch network that can solve all problems locally without additional costs.

As for the no less urgent issue of transferring personal data of borrowers by banks to collectors, the norms of the Federal Law of July 27, 2006 No. 152-ФЗ "On Personal Data" regulate the procedure for working with personal data of individuals, including bank customers, in accordance with which the provision of personal data to third parties is also possible subject to the borrower's consent given by him in compliance with all requirements established by the law on personal data. The document does not contain exceptions or reservations regarding the processing of personal data of bank customers.

Moreover, the bank's client is free both in the matter of granting his consent to the transfer of his data to third parties, and in his subsequent recall.

Our recommendations in this case are to include, as a separate paragraph, the borrower's consent to transfer his personal data to a third party to be collected in case of failure to fulfill payment discipline.

Finam.info, 10/13/2011

 

[НСК-СБ]

Thank you, interesting, relevant!
It is really beneficial for banks to sell collectors a portfolio of overdue debts, and, especially, not working - hopeless!
And here there is a real field for our activities - with collectors and banks - to search for debtors and their property!

 

[@InfoPoisk]

Yes indeed, collectors will really need our help.