"Credit Card Slaves" to Get Repayment Help via Public Beneficial Assets Management Company

Strategic Insights -

A public beneficial assets management company is set to be inaugurated on March 24 to help individuals with excessive credit card debt pay off their debts in a manageable way. The initiative, formed by the Bankers Association, aims to alleviate the burden of "credit card slaves" by collecting debts for private banks in a way that allows debtors to earn the money for repayment. The company's creation follows a mechanism that has already helped 19,000 credit card debtors with combined debts of NT$31.9 billion.

Key Takeaways:

  • The public beneficial assets management company will be formed with investment by private banks, excluding any monetary injection, except for their overdue credit card debts.
  • Private banks hold NT$130 billion (US$4 billion) in combined claims of overdue credit card debts, with 70% of debt holders having debts of NT$300,000 or less.
  • The company will focus on NT$10 billion-worth of overdue credit card debts in its first stage, with the aim of freeing debtors from debt slavery.
  • The mechanism has already assisted 19,000 credit card debtors with combined debts of NT$31.9 billion.
  • The Financial Supervisory Commission (FSC) estimates that 70% of debt holders have debts of NT$300,000 or less.
  • Kong Jaw-sheng, head of the FSC, stated the goal of setting up the company is to help "credit card slaves" repay their debts in a manageable way.

Statistics:

  • Private banks hold NT$130 billion (US$4 billion) in combined claims of overdue credit card debts.
  • 70% of debt holders have debts of NT$300,000 or less.
  • The company will deal with NT$10 billion-worth of overdue credit card debts in its first stage.
  • The mechanism has helped 19,000 credit card debtors with combined debts of NT$31.9 billion.
  • NT$300,000 is the threshold for 70% of debt holders.

Sources:

  • CNA, Asia Pulse.