Local financial services companies are set to establish a “joint debt collection firm” in the near future, in a bid to further reduce the number of credit defaulters (both individuals and companies), according to the Ministry of Finance and Economy (MOFE).
A total of 620 domestic financial services companies, which participated in forming the bad bank last year, plan to recover their overdue loans and credit card debts extended to 1m credit delinquents in a more systematic and efficient way through the debt collection company. MOFE officials said the establishment of a collection company is aimed at not only improving the financial health of lenders, but also providing credit defaulters a practical opportunity to become debt free.
