OVERDUE DEBT COLLECTION PROCESS OF BANKS 2024 (REPUTABLE LAW FIRM IN HO CHI MINH CITY, VIETNAM)

OVERDUE DEBT COLLECTION PROCESS OF BANKS 2024

(REPUTABLE LAW FIRM IN HO CHI MINH CITY, VIETNAM)

HT Legal VN Law Firm is a pioneer in providing legal services to protect borrowers and mortgage providers. We would like to share the bank’s debt collection process as follows:

1. What is Debt Collection?

Debt collection is a routine activity performed by banks to manage and recover problematic debts, ensuring smooth business operations. This process adheres to legal regulations and involves professional debt collection methods.

2. What is the Debt Collection Process?

The bank’s debt collection process typically includes the following steps:

• Identifying the debt: This includes identifying the borrower, the mortgagor, the collateral, and the repayment status.

• Classifying debtors: Debtors are classified based on the type of debt (from group 1 to group 5), the nature of assets (unsecured or secured), and by subject group or handling status.

• Assigning debt collection staff.

• Reminding customers before the due date or repayment deadline.

• Negotiating with customers: This involves discussions on overdue debt repayment, debt settlement, or provision of additional collateral.

• Seizing collateral or filing a lawsuit: If the customer cannot repay or fails to cooperate, the bank may seize the collateral or file a lawsuit in court.

• Auctioning or liquidating collateral: Depending on the seizure or lawsuit, the bank may auction or liquidate the collateral or request the Enforcement Agency to execute a judgment to recover the debt.

3. Notes for Customers with Bad Debts

• Do not evade debt: Evasion is difficult and can lead to criminal prosecution.

• Do not resist or refuse to cooperate: This only worsens the situation and can have negative consequences for both the borrower and the mortgagor.

• Debt collection is an internal bank operation: Local authorities or the police do not get involved in debt collection, and banks do not hire disreputable individuals for debt recovery. All banking activities must comply with the law.

4. Why Do You Need a Reputable Lawyer for Protection?

A lawyer specializing in protecting borrowers and mortgage providers can help you understand your rights and obligations, as well as provide advice and protection in contract disputes. It is crucial to engage a professional law firm like HT Legal VN Law Firm, which has expertise in advising borrowers, mortgagors, and resolving credit and mortgage contract disputes. Seeking legal advice from unqualified entities or individuals can be highly disadvantageous. Timeliness, asset valuation, understanding the strengths and weaknesses of your case, and making quick, accurate decisions are essential in negotiating such matters.

See also this article: Why should you use HT Legal VN's debt management and handling services?

We hope this article helps you better understand the bank’s debt collection process and the importance of legal protection. 

We are pleased to welcome you at the following addresses:

Lawyer Nguyen Thanh Trung or HT LEGAL VN LAW FIRM
Office 1: 37/12 Alley 602 Dien Bien Phu, Ward 22, Binh Thanh District, Ho Chi Minh City (Next to Ward 22 People's Committee)
Office 2: 207B Nguyen Phuc Chu, Ward 15, Tan Binh District, Ho Chi Minh City
Office 3: No. 5 Alley 252/115, Tay Son Street, Trung Liet Ward, Dong Da District, Hanoi
Email: info@htlegalvn.com            Hotline: 09 6161 4040 – 09 4517 4040