debt collectors have yet to work hard to please and the bankers, and the State …
Experts predict that by year-end level of problem loans in the banking system will rise to 50-65 billion UAH. However, 60% of problem debts will fall on corporate customers of banks. This is the potential scope of work for collection companies. However, until now collectors can boast significant market coverage of the bad loans. Several reasons.
Idle
For example, collectors are still very poorly working with corporate clients of banks. Most collection companies specialize in lending physical persons. And the debts of corporate customers make up about 10% of the portfolio collectors. This is due to the fact that the work of corporate debt is individual, it requires a personal approach. While the retail collectors have to deal with the same type of instruments that allows you to put the work on the pipeline, - explains Cyril Tsiprivuz, director of the Finance collections agency.
According to him, the portfolio of debt transferred to the FASC, increases by 20-25% per month, due to the initial phase of the company, while the overall market is growing much more modest pace. Many collectors recognize that the potential of their companies involved no more than 20%. In this case the total amount of debt taken in the work, they estimate at $ 500-800 million According to experts, 80% of the problem of debt collectors pass on banks, the rest - theinsurance companies and credit unions. Collectors complain that so far can not establish a work on knockout of debts for communal services. Recently, city officials rejected the idea of capital attraction collection agencies for these purposes.
estimated themselves collectors, now in arrears for public utilities services, water and energy exceeds 12 billion UAH. It is obvious that this figure will only increase. The volume of debt, transmitted by the local authorities to recover the debt collection companies, is only 0.8 billion UAH. For knocking out money for housing and communal services to help collectors used only in selected suburbs of Kiev, as well as some major cities of North-eastern and central Ukraine. There is no uniform policy of local authorities on the subject, besides utilities offer different structures. Therefore very difficult to negotiate, - notes Tsiprivuz.
to travel to the Commission
Recall: domestic collectors are working with banks, using mainly two schemes. Most often, the bank sends pickers loans to so-called contracts of the commission. Typically, commission collectors in this case is at least 5% of the amount of penalty, if the debts were more than 30 days and up to 40% if the debt exceeds the year. In this case, the collectors and the bank's agents acting on its behalf. Another (classical in the West) scheme, which consists in the repayment collectors problematic portfolios from banks at a discount, our market has not yet taken hold. We have redemption is sufficiently small. 90% of the portfolio - is the work under commission contracts. Average cost of purchase loan varies from 5% to 10% of the loan portfolio, - noted Kirill Tsiprivuz.
According to him, before you buy a problematic debt, the company carefully analyzes it, because nobody will buy a pig in a poke. Moreover, as a rule, get debt collectors subject to repurchase. For example, if it turns out that there is no collateral on the loan, the borrower has died or is in jail, the transaction between the bank and the collector shall be abolished. Often, sale of debt legally formalized instruments of assignment of the claim.
st.512 Such relations are governed by the Civil Code. In this case the Supreme Economic Court, in its Order dated 04.12.06, the case № 16/2635 has determined that in accordance with claims 1 p.1 st.512 CC creditor may be replaced by another person as a result of the transfer of its rights to another person under a contract of assignment claim. Thus, the Court recognized a legitimate conclusion, bank and non-financial entities the right to demand a contract of assignment of debt on the loan.
   ÂÂ
banker - for samples
Paul Tsetkovsky, Vice Chairman of the Board, Erste Bank (Ukraine)
- Like all banks, we have constantly deteriorating quality of loan portfolio. So we decided to attract collectors and transferred them to a portfolio of various loans, represented the entire product range, including auto and mortgage loans. The level of delay to transferred loans - 30-180 days. Determine if the collectors are good, as they say about themselves. For six weeks we are in the process of implementation of the pilot project with one of the collecting agencies. We want to see whether the collectors to achieve greater efficiency than we do ourselves. After three months we will take stock and decide on the advisability of further cooperation. There is one main difference between the work of local collectors from the work of their colleagues from other countries. In Europe, collectors, mainly using the scheme buy-back problem debts on loans. With regard to regulation, the big difference between Ukraine and other countries not. I do not see the need for some additional regulationof this activity.
Collector - withdrawal
Krivosheyev Roman, president of the Independent Association of Ukrainian collection agencies
- We are not against regulating the market of collector services, but also against the license in the form in which it wants to enter the Justice Ministry. Draft license terms, which is considered by the working group, contains stringent regulatory requirements and standards (eg, statutory fund of not less than 3 million grn.). Such requirements are consistent with many collection companies. This will lead to the fact that the market will not develop normally. The state is trying to squeeze us in a vise and restrict access to the market. We have proposed a bill that addresses the market, but it was rejected.
Lawyer - the responsibility
Igor Golovan, managing partner of law firm Golovan & Partners
- In the absence of a legislative definition of collector activity, the effect of its licensing will be negligible. After all, to avoid the need to obtain a license, it will be sufficient simply to give his work another word. Well, for example, creative communication with the debtors, or something like that. Some special knowledge and skills of the collectors there. However, in the press a lot of talk that, unlike banks, in the process of collecting the debt collectors are offering more something. That something - is nothing but a kind of psychological pressure, and even something more serious. So that the debtor in case of any creditor or collector attempts to go beyond the procedures established by law, can safely call the police and claim a crime under the Penal Code st.355 (forced or failure to perform obligations under civil law ).
  ÂÂ
   ÂÂ
Body Care
is noteworthy that, despite the crisis, not all banks are turning to the collectors, many do so only in extreme cases. From the beginning of the portfolio of debt, which we have given collectors, virtually unchanged. In our bank, usually collectors transferred portfolios with a significant level of delay, when the bank has worked for these loans, but has not reached a result , - says Stanislav Lyudkevych, Director of dealing with problem assets VAB Bank. According to Eugene sailor, an independent expert in the field of risk management at the level of activity to work with collectors banks can be divided into three groups: Most of the bank on its own fully squeezes the borrower and then sends it to collectors, hoping for their professionalism and the miracle . Some banks pass on debt collection with the least delay - 30-60 days. While other financial institution fundamentally do not work with collectors. Typically, this small regional banks. Cyril Tsiprivuz adds that some banks prefer to work only with affiliated collection agencies. In some of the financial institution are convinced that work with the debt problem on its own is much more effective. Pre-trial collection of problem debts we do ourselves, we have our call-center and staff that establish personal contact with debtors.
his staff are working much better, they get the job, and then we asked of them the result , - says Mary Goose, director of the department of the collection of loans for retail business INDEXBANK. However, it is recognized that the bank loan agreements with borrowers are no reservations, which gives him the right to transmit information about borrowers to third parties. However, the companion assures me that the main reason for refusing to cooperate with the collectors - this is the low efficiency of the latter. Deputy Chair of a major bank, who wished to remain anonymous, said: When the credits transferred to collectors, runs a faceless machine, there is no specific person with whom you can ask the result. As a result, the bank operates three times more efficient. If the average return rate of problem debts through the reservoir is about 6%, then the own network shows the result of 12-18%.
scoring at hand
Currently domestic reservoir of the company in order to minimize costs to actively seek the most effective methods of impact on different groups of debtors. Previously, all treated, that is, with the same brush, but now using scoring models debtors are divided into categories by type of behavior. Collecting the company is working with the debtor within a certain time, say, a month. After this period, analyzes the history of interaction, for example, the number dialed to a successful client, how many times he promised to pay, what percentage of promises, how many times he called. Based on these parameters is done scoring, with an estimated probability of repayment. If the probability is low, it is possible to stop work, to avoid wasting resources for nothing, or whether to start more actively push to a borrower, - says Sailor, who is developing a system for one of the collecting agencies. It is noteworthy that, according to market participants, collection companies massively curtail the service so-called hard-collection, staff had personally visited the malicious defaulters. A lot of collection companies to limit their resources on home visits to the borrowers. Ironically, they were not very effective. Moreover, control of such personnel is very difficult. At the head office think that the staff attend to clients, but they do not.
Management believes that its employees adhere to ethical conduct in dealing with customers, but they are at this time literally knock out debt, - said the head of a regional collection companies, who wished to remain anonymous. Despite numerous challenges, bankers point out the high level of competition in the market of collection services, due to the discovery of new companies. Even the people's representatives considered very promising this kind of business. Over the past six months, several deputies from the Party of Regions have organized their collection companies. These people always have spare money that they invest in promising directions. Right now they all rushed to the collector, - says the banker, who requested anonymity.
Adjustment
At the same time still remains uncertain question of state regulation of collector activity. Remember: in February this year, Justice Minister Mykola Onishchuk called such activities illegal. The Ministry of Justice established a working group with representatives of the collection business, which was promptly develop a regulatory framework for the collector activity. However, only in early August, the Cabinet of Ministers registered in the parliament a bill number 5046 dated 06.08.09, provides for the amendment of Article 9 of the Law of Ukraine On licensing certain types of economic activity.
Thus, the Government proposes to introduce licensing of collector activity, already have drafted licensing conditions. It is curious that such an initiative has caused a split among the participants of debt collection market. Thus, in the collection business members of the Association of Ukraine (AUKBU) support the Government's initiative and believe that the market requires strict regulation. According to the president AUKBU, head of the European Agency for Debt Recovery Alexander Ilchuk, the market lot of gray collection companies that do not have a sufficient resource base, experience in collection of problem debts, and do not always use the correct methods of interaction with borrowers. Back in April of this year we sent an official letter addressed to Justice Minister Mykola Onishchuk with a proposal to amend the Law of Ukraine On licensing certain types of economic activity, according to which we proposed to introduce licensing of collector activity. Companies in the composition AUKBU, ready to pass all the necessary procedures and controls to obtain a license, - notes Ilchuk. But in another association of collectors - the Independent Association of Ukrainian collection agencies (Science) - categorically oppose the licensing of collector activity. Norms, which contains a draft law on licensing, rather rigid, and this can lead to market monopolization. In such conditions remain for two or three companies that match those criteria, and will not be a normal free market competition , - says Roman Krivosheev, president of Science, General Director of OOO IKSPOINT. Some bankers also recommend against the licensing of collection business.
Licensing will lead to a narrowing of competition and, consequently, more expensive services, - notes Lyudkevych. In addition, in the case of licensing will be the regulatory body. And any government control - is quite an inefficient mechanism, which is often associated with corruption. The best option would be to establish self-regulating organization in the collector field, - adds colleague banker, who requested anonymity. Meanwhile, Science has already adopted a code of ethics collectors. According to him, you may not use procedures that may offend the honor and dignity of the debtor, in addition, it is recommended to disturb defaulters only from 7 to 22 hours. At the same time, the text notes that the efficiency of the recovery depends on the circumstances. Thus, this process can not be fully regulated.
Dmitry Grinkov
Fitch Affirms Georgia at the B and assigned a Stable
Today analysts' forecasts for the pair EUR /USD - up for auction in Rendžov: 1.4170-1.4300
Forex Market 27/08/2009
Maintaining a low rate to the U.S. for economic recovery
The state wants to manage the companies owned by him indirectly
GM slow in selling Opel because of echoes of the Cold War
Forex - Asia
Ordinary shares Mosenergo, Irkutskenergo and OGK-4 cheaper today at 1,34%, 2,72% and 1,13% respectively
The struggle for the level of 1100 points on the MICEX index continues to grow share of the regional telecom
No dust
debt collectors have yet to work hard to please and the bankers, and the State …
Experts predict that by year-end level of problem loans in the banking system will rise to 50-65 billion UAH. However, 60% of problem debts will fall on corporate customers of banks. This is the potential scope of work for collection companies. However, until now collectors can boast significant market coverage of the bad loans. Several reasons.
Idle
For example, collectors are still very poorly working with corporate clients of banks. Most collection companies specialize in lending physical persons. And the debts of corporate customers make up about 10% of the portfolio collectors. This is due to the fact that the work of corporate debt is individual, it requires a personal approach. While the retail collectors have to deal with the same type of instruments that allows you to put the work on the pipeline, - explains Cyril Tsiprivuz, director of the Finance collections agency.
According to him, the portfolio of debt transferred to the FASC, increases by 20-25% per month, due to the initial phase of the company, while the overall market is growing much more modest pace. Many collectors recognize that the potential of their companies involved no more than 20%. In this case the total amount of debt taken in the work, they estimate at $ 500-800 million According to experts, 80% of the problem of debt collectors pass on banks, the rest - theinsurance companies and credit unions. Collectors complain that so far can not establish a work on knockout of debts for communal services. Recently, city officials rejected the idea of capital attraction collection agencies for these purposes.
estimated themselves collectors, now in arrears for public utilities services, water and energy exceeds 12 billion UAH. It is obvious that this figure will only increase. The volume of debt, transmitted by the local authorities to recover the debt collection companies, is only 0.8 billion UAH. For knocking out money for housing and communal services to help collectors used only in selected suburbs of Kiev, as well as some major cities of North-eastern and central Ukraine. There is no uniform policy of local authorities on the subject, besides utilities offer different structures. Therefore very difficult to negotiate, - notes Tsiprivuz.
to travel to the Commission
Recall: domestic collectors are working with banks, using mainly two schemes. Most often, the bank sends pickers loans to so-called contracts of the commission. Typically, commission collectors in this case is at least 5% of the amount of penalty, if the debts were more than 30 days and up to 40% if the debt exceeds the year. In this case, the collectors and the bank's agents acting on its behalf. Another (classical in the West) scheme, which consists in the repayment collectors problematic portfolios from banks at a discount, our market has not yet taken hold. We have redemption is sufficiently small. 90% of the portfolio - is the work under commission contracts. Average cost of purchase loan varies from 5% to 10% of the loan portfolio, - noted Kirill Tsiprivuz.
According to him, before you buy a problematic debt, the company carefully analyzes it, because nobody will buy a pig in a poke. Moreover, as a rule, get debt collectors subject to repurchase. For example, if it turns out that there is no collateral on the loan, the borrower has died or is in jail, the transaction between the bank and the collector shall be abolished. Often, sale of debt legally formalized instruments of assignment of the claim.
st.512 Such relations are governed by the Civil Code. In this case the Supreme Economic Court, in its Order dated 04.12.06, the case № 16/2635 has determined that in accordance with claims 1 p.1 st.512 CC creditor may be replaced by another person as a result of the transfer of its rights to another person under a contract of assignment claim. Thus, the Court recognized a legitimate conclusion, bank and non-financial entities the right to demand a contract of assignment of debt on the loan.
   ÂÂ
banker - for samples
Paul Tsetkovsky, Vice Chairman of the Board, Erste Bank (Ukraine)
- Like all banks, we have constantly deteriorating quality of loan portfolio. So we decided to attract collectors and transferred them to a portfolio of various loans, represented the entire product range, including auto and mortgage loans. The level of delay to transferred loans - 30-180 days. Determine if the collectors are good, as they say about themselves. For six weeks we are in the process of implementation of the pilot project with one of the collecting agencies. We want to see whether the collectors to achieve greater efficiency than we do ourselves. After three months we will take stock and decide on the advisability of further cooperation. There is one main difference between the work of local collectors from the work of their colleagues from other countries. In Europe, collectors, mainly using the scheme buy-back problem debts on loans. With regard to regulation, the big difference between Ukraine and other countries not. I do not see the need for some additional regulationof this activity.
Collector - withdrawal
Krivosheyev Roman, president of the Independent Association of Ukrainian collection agencies
- We are not against regulating the market of collector services, but also against the license in the form in which it wants to enter the Justice Ministry. Draft license terms, which is considered by the working group, contains stringent regulatory requirements and standards (eg, statutory fund of not less than 3 million grn.). Such requirements are consistent with many collection companies. This will lead to the fact that the market will not develop normally. The state is trying to squeeze us in a vise and restrict access to the market. We have proposed a bill that addresses the market, but it was rejected.
Lawyer - the responsibility
Igor Golovan, managing partner of law firm Golovan & Partners
- In the absence of a legislative definition of collector activity, the effect of its licensing will be negligible. After all, to avoid the need to obtain a license, it will be sufficient simply to give his work another word. Well, for example, creative communication with the debtors, or something like that. Some special knowledge and skills of the collectors there. However, in the press a lot of talk that, unlike banks, in the process of collecting the debt collectors are offering more something. That something - is nothing but a kind of psychological pressure, and even something more serious. So that the debtor in case of any creditor or collector attempts to go beyond the procedures established by law, can safely call the police and claim a crime under the Penal Code st.355 (forced or failure to perform obligations under civil law ).
  ÂÂ
   ÂÂ
Body Care
is noteworthy that, despite the crisis, not all banks are turning to the collectors, many do so only in extreme cases. From the beginning of the portfolio of debt, which we have given collectors, virtually unchanged. In our bank, usually collectors transferred portfolios with a significant level of delay, when the bank has worked for these loans, but has not reached a result , - says Stanislav Lyudkevych, Director of dealing with problem assets VAB Bank. According to Eugene sailor, an independent expert in the field of risk management at the level of activity to work with collectors banks can be divided into three groups: Most of the bank on its own fully squeezes the borrower and then sends it to collectors, hoping for their professionalism and the miracle . Some banks pass on debt collection with the least delay - 30-60 days. While other financial institution fundamentally do not work with collectors. Typically, this small regional banks. Cyril Tsiprivuz adds that some banks prefer to work only with affiliated collection agencies. In some of the financial institution are convinced that work with the debt problem on its own is much more effective. Pre-trial collection of problem debts we do ourselves, we have our call-center and staff that establish personal contact with debtors.
his staff are working much better, they get the job, and then we asked of them the result , - says Mary Goose, director of the department of the collection of loans for retail business INDEXBANK. However, it is recognized that the bank loan agreements with borrowers are no reservations, which gives him the right to transmit information about borrowers to third parties. However, the companion assures me that the main reason for refusing to cooperate with the collectors - this is the low efficiency of the latter. Deputy Chair of a major bank, who wished to remain anonymous, said: When the credits transferred to collectors, runs a faceless machine, there is no specific person with whom you can ask the result. As a result, the bank operates three times more efficient. If the average return rate of problem debts through the reservoir is about 6%, then the own network shows the result of 12-18%.
scoring at hand
Currently domestic reservoir of the company in order to minimize costs to actively seek the most effective methods of impact on different groups of debtors. Previously, all treated, that is, with the same brush, but now using scoring models debtors are divided into categories by type of behavior. Collecting the company is working with the debtor within a certain time, say, a month. After this period, analyzes the history of interaction, for example, the number dialed to a successful client, how many times he promised to pay, what percentage of promises, how many times he called. Based on these parameters is done scoring, with an estimated probability of repayment. If the probability is low, it is possible to stop work, to avoid wasting resources for nothing, or whether to start more actively push to a borrower, - says Sailor, who is developing a system for one of the collecting agencies. It is noteworthy that, according to market participants, collection companies massively curtail the service so-called hard-collection, staff had personally visited the malicious defaulters. A lot of collection companies to limit their resources on home visits to the borrowers. Ironically, they were not very effective. Moreover, control of such personnel is very difficult. At the head office think that the staff attend to clients, but they do not.
Management believes that its employees adhere to ethical conduct in dealing with customers, but they are at this time literally knock out debt, - said the head of a regional collection companies, who wished to remain anonymous. Despite numerous challenges, bankers point out the high level of competition in the market of collection services, due to the discovery of new companies. Even the people's representatives considered very promising this kind of business. Over the past six months, several deputies from the Party of Regions have organized their collection companies. These people always have spare money that they invest in promising directions. Right now they all rushed to the collector, - says the banker, who requested anonymity.
Adjustment
At the same time still remains uncertain question of state regulation of collector activity. Remember: in February this year, Justice Minister Mykola Onishchuk called such activities illegal. The Ministry of Justice established a working group with representatives of the collection business, which was promptly develop a regulatory framework for the collector activity. However, only in early August, the Cabinet of Ministers registered in the parliament a bill number 5046 dated 06.08.09, provides for the amendment of Article 9 of the Law of Ukraine On licensing certain types of economic activity.
Thus, the Government proposes to introduce licensing of collector activity, already have drafted licensing conditions. It is curious that such an initiative has caused a split among the participants of debt collection market. Thus, in the collection business members of the Association of Ukraine (AUKBU) support the Government's initiative and believe that the market requires strict regulation. According to the president AUKBU, head of the European Agency for Debt Recovery Alexander Ilchuk, the market lot of gray collection companies that do not have a sufficient resource base, experience in collection of problem debts, and do not always use the correct methods of interaction with borrowers. Back in April of this year we sent an official letter addressed to Justice Minister Mykola Onishchuk with a proposal to amend the Law of Ukraine On licensing certain types of economic activity, according to which we proposed to introduce licensing of collector activity. Companies in the composition AUKBU, ready to pass all the necessary procedures and controls to obtain a license, - notes Ilchuk. But in another association of collectors - the Independent Association of Ukrainian collection agencies (Science) - categorically oppose the licensing of collector activity. Norms, which contains a draft law on licensing, rather rigid, and this can lead to market monopolization. In such conditions remain for two or three companies that match those criteria, and will not be a normal free market competition , - says Roman Krivosheev, president of Science, General Director of OOO IKSPOINT. Some bankers also recommend against the licensing of collection business.
Licensing will lead to a narrowing of competition and, consequently, more expensive services, - notes Lyudkevych. In addition, in the case of licensing will be the regulatory body. And any government control - is quite an inefficient mechanism, which is often associated with corruption. The best option would be to establish self-regulating organization in the collector field, - adds colleague banker, who requested anonymity. Meanwhile, Science has already adopted a code of ethics collectors. According to him, you may not use procedures that may offend the honor and dignity of the debtor, in addition, it is recommended to disturb defaulters only from 7 to 22 hours. At the same time, the text notes that the efficiency of the recovery depends on the circumstances. Thus, this process can not be fully regulated.
Dmitry Grinkov
Fitch Affirms Georgia at the B and assigned a Stable
Today analysts' forecasts for the pair EUR /USD - up for auction in Rendžov: 1.4170-1.4300
Forex Market 27/08/2009
Maintaining a low rate to the U.S. for economic recovery
The state wants to manage the companies owned by him indirectly
GM slow in selling Opel because of echoes of the Cold War
Forex - Asia
Ordinary shares Mosenergo, Irkutskenergo and OGK-4 cheaper today at 1,34%, 2,72% and 1,13% respectively
The struggle for the level of 1100 points on the MICEX index continues to grow share of the regional telecom