“Bad Credit Cards Don’t Pay.” Can It Really Do?Loans
Ever heard of people laying credit card bills? “Ah, bad credit cards don’t have to pay! It’s better to just leave it because there’s no use, our names are already bad in BI’s eyes.”
Surely this assumption is completely wrong. You still have to pay for a bad credit card. Why so? Because there are a number of negative impacts that are slowly starting to emerge if the bad credit card bills are not immediately repaid. For more details, let’s see what negative impacts can arise.
Collectability of Bad Credit and Enter in BI Blacklist
In accordance with applicable standards throughout Indonesia, each bank is required to update data on the smooth payment of credit, including the use of credit cards, to the CBB Bank, BBI Bank. All of these reports will be registered in the Debtor Information System (SID), all credit records that someone has will be recorded clearly. In IDI Historical reporting, customers can also see the credit score obtained based on the smooth payment that has been made. Here are some types of scores available in Historical IDI:
- Collectability 1 means credit is current
- Collectability 2 means credit in special attention / TPF: 90 days
- Collectability 3 means non-current credit: 120 days
- Collectability 4 means credit is doubtful: 180 days
- Collectability 5 means bad credit:> 180 days
If the credit card that you have is stuck, it will usually be automatically registered in collectability 3-5 depending on the length of the arrears. Of course you don’t want to experience this, because bad collectability will make it difficult for you if in the emergency you want to come back to apply for a loan. Why so? Because the bank will assume that you are not responsible enough for the loan that you submitted in the past, so you are considered to have the potential to repeat the same mistakes.
You also need to pay attention that BI Blacklist will not just disappear without being paid, never believe that BI blacklist will disappear in 5 years. The only way to overcome this is of course by paying credit card arrears, so that the bank where you borrow can re- update the data to BBI Bank, so that your name will return to being eligible to apply for a loan. So, even though you have registered badly in the past, your name can go back clean and use bank facilities as before.
Note: As of January 2018, the entire BI Checking process to obtain a Historical IDI can no longer be accessed through BBI Bank. You can get it through the Financial Services Authority (FSA) in the Financial Information Service System (FISS)
Chased by Debt Collector
If you still don’t want to pay for a bad credit card bill, there is another impact that you will feel later, which is pursued by a debt collector . Usually the debt collector will repeatedly call you to ask for certainty of payment of all arrears. This will certainly make you feel uncomfortable. Usually other than by telephone, a debt collector will also visit the billing address listed in your personal data. So, it is possible for a debt collector to approach the home address or office address, according to the address you registered.
Although debt collectors can interfere, there are actually several restrictions issued by BBI Bank regarding the procedure for debt collection:
- Not allowed to threaten
- Not allowed to use verbal or physical violence
- Can only charge the card holder
- Only collect at the billing address listed
- Billing can only be done at 08.00 – 20.00 according to the debtor’s time zone
- Billing outside the billing address listed can only be done as agreed by the debtor
Even so, that does not mean you can still survive not paying credit card bills. You still have to pay off the bad credit card bills that are still running. At least, do this so that the existence of a debt collector does not disturb the peace of you and your family at home. It feels very disturbing not if the debt collector continues to approach the house and call you. Imagine if you register your office address as a billing address, of course this can create problems for your work.
Usually if you still believe in saying “bad credit cards don’t have to pay”, people will switch to creating new debts. Various methods will be carried out, for example by borrowing money from non-bank financial institutions, submitting online loans, or the worst applying for individual loans to loan sharks. This of course only adds to the problem. Credit card debt that must be repaid in advance becomes more sustainable with monthly interest & late penalties. Do not miss, the new debt obtained from other creditors usually also incur a large interest expense, even if with loan sharks the amount of interest can be much greater, and of course it must be repaid.
Accumulation of debt is how to pay it off
One more thing to note from the accumulation of debt is how to pay it off. If only one type of debt is not able to be repaid, imagine if there are other debts that appear. Of course, you will find it more difficult to pay off, and it is not impossible to lead to the emergence of new arrears. The effect? Of course there will be a debt collection process. It’s just that you also have to remember that in contrast to the bank whose regulations regarding the billing process are clearer, sometimes loans that are submitted to individuals have a far more risky billing process. The method of billing is not necessarily accompanied by courtesy, and certainly not based on regulations. More dangerous, right?
So now you know, bad credit cards shouldn’t be left alone. You must still look for steps to complete a bad credit card, so that the name can be clean and live more peacefully!