Been working there about 6 months now. A lot of people seem to have misconceptions of what we do so maybe this will clear some of it up. No financial advice though.
[AMA] I Work in Collections for a Big 4 Bank. Ask Me Anything
LAstrohawke on 06/04/2019 - 02:07
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I would imagine you put a claim into the dead persons estate.
I don't personally. I just request certain details such as who's managing the estate and ask them to submit a death certificate then the account gets referred to a special department.
Is it true major banks/lenders actually offer incentives and discounts for debtors to pay off their loans in the lead up to EOFY, that sometimes include writing-off a significant percentage of the debt?
I heard this from people working for debt collection agencies.
Unsure as I haven't worked near the EOFY. Banking EOFY is in September, I started in October last year. Write-offs happen after a certain number of days so you can't just write off a debt early to inflate profit numbers. As far as discounts go, we generally don't actively offer it. Usually the debtor needs to request it because they've been advised it's their best course of action by a financial counsellor/advisor. Even then, they need to have fully explored other options including hardship assistance.
Is there an amount that the bank draws the line and says it's not worth pursuing through a court order?
….for a friend? :)
Haha nah, just interested to know, especially for unsecured debts like credit cards where they can't take assets.
I don't know the exact amount but most unsecured debt doesn't go to the litigation stage because it just isn't worth it. I've seen debts upwards of 10k get written off. In most cases, after a certain period, the debt just gets referred to a 3rd party debt collector.
Can you elaborate on the bank bail-in scheme that was rushed through parliament without a formal vote last year that allows the banks to pinch our savings when the chickens come home to roost?
What pets do you have?
Black bears are best.
That's debatable. There are basically two schools of thought…
Bears… Beets… BATTLESTAR GALACTICA
What's the best excuse you've heard? Like the "my dog ate my homework" of your profession?
Like the ones where I think they're bullshitting me? It's hard to say because I don't really judge and you can't exactly call them out. At the end of the day, the reason for not paying is only useful for determining what the best options going forward are because they will still have to pay.
A lot of people use death to try and garner sympathy. Like a guy told me his dad died, I asked him when and he said a year ago and I'm thinking how did that affect your ability to pay your credit card last month? Someone also said his mate got murdered.
Is a valid excuse, “Hey, you know I couldn’t repay the 10k credit card when you gave it to me” ?
You do get that every so often. Usually this goes 2 ways. If they want to kick up a fuss and refuse to pay, I let the complaints department deal with it. If they still want to try and pay but can't afford to, then they get referred to financial hardship and possibly a reduced payout down the line.
Which is the best country if one wanted to skip a debt?
What's the forecast on work load? Is more "business" expected to come in over next year or two?
I would think yes.
With banks tightening their policies on loaning money, people that shouldn't have qualified for mortgages were being approved. There's only so many instant noodles people can eat before it catches up with them
This is true. I see a lot of people who had interest only home loans that had no idea when that interest only period ended then were shocked at the increase in their monthly repayments and couldn't afford it.
I don't really have an overview on workload though since I'm on the front lines.
I was going to ask the same.
What the minimum debt that can be given to you guys and are the people liable to pay your fee even though they have not signed a agreement to?
Unsure what you mean. I work in the bank. We only collect on debts that people have taken out with the bank.
Sorry missed the part you being in bank. Thaught was collections agency.
Have you ever had to call someone you know???
Once. I called someone I knew from uni. Like I recognised the name and knew who he was but I didn't really know him personally if you know what I mean.
Yes you mean the one night stands.
Do you collect from dead people? (If so, how does it work? Assuming someone who manages their estate?)