Unfortunately, only a few people with problem loans know that they can repurchase their credit debt from a bank. Moreover, the person who used this right will have to pay no more than 30% of the total loan amount.
How is the repayment of debts?
The scheme of this procedure is quite simple and similar to the one in which problem loans are sold to collection agencies. The only nuance that must be taken into account is that the client himself cannot repurchase credit debts. Therefore, he will have to attract third parties who agree to sign an assignment agreement with a banking institution. Thanks to this, the borrower will manage to do without all kinds of forfeits, fines and commissions.
In fact, the procedure for repurchasing debt from a bank is extremely simple. The only stumbling block may be the search for a third party. In this situation, the debtor will have to choose from two possible options, the first of which will be an appeal to a qualified lawyer, the second will be a trip to anti-collectors. And in that, and in another case, you have to pay for the services, but still it will cost much less than paying off the debt with all the time and interest that have been fined and fines.
If representatives of the bank themselves offer to repay the debts, then one of the borrower's friends or acquaintances may act as a front man. In this situation, the bank will handle the paperwork.
Why can’t you buy debt directly?
With all their desire, representatives of a credit institution cannot take such a step. And above all, because it is a matter of principle. The management of the bank is well aware that by agreeing to sell the debt directly to the borrower once, it will set a precedent. And after that, no one can guarantee that the next day a crowd of people wishing to buy their own debts for nothing will not gather under the office. Such actions will not only lower the rating of the institution, but will inevitably entail a crisis in the banking system.
What debt can I buy from a bank?
A credit institution agrees to sell far from every debt. Loans are subject to sale for which at least half a year no payments have been received. An important role is played by the type of loan. Not a single bank that is happy to sell expired credit cards and unsecured consumer loans will ever agree to sell mortgages and other loans backed by collateral.
Also, most banks without problems agree to buy back debts that do not have guarantors, from which it would be possible to demand the return of the taken amount. The same applies to expiring loans. The closer this period, the cheaper and easier it is to agree on the repayment of this loan.
Why redeem debts and why is it more profitable for banks to sell them for nothing?
Over the past few years, there has been a steady tendency for credit organizations to offer their clients to find a third party and redeem their debts for 20-30% of the total loan amount. Sensible borrowers, soberly assessing the situation, usually agree to this step. An adequate person understands that if a bank initiates an appeal to the courts, the borrower will not be able to count on a decrease in the loan amount. In the best case, the court can cancel all forfeits and fines. A debtor who agrees to purchase his loan receives huge benefits. Firstly, the amount of his debt will decrease several times. Secondly, he gets rid of excessive financial oppression.Thirdly, it improves its own credit history and receives moral satisfaction.
As for the banks themselves, it is extremely unprofitable for them to have problem loans under their jurisdiction. This is because the Central Bank regulations force them to get rid of “bad” loans by any means. In addition, the presence of insolvent debtors reduces the performance of the loan portfolio and hurts the rating and image of a banking institution. Not the least role in this issue is played by the difficulties that inevitably arise in the process of independent debt collection. All this forces banks to secretly sell unpromising loans as much as possible, having received a tiny amount for them.
