Citibank announced it is hiring up to 1,400 debt collectors in Indonesia after the country's central bank found irregularities in the bank’s collection practices handled by third-party collectors.
The decision comes after Bank Indonesia (BI) Governor Darmin Nasution said the central bank would sanction Citibank after finding the troubled bank violated "standard operational procedures in its debt collection and private banking services."
The central bank earlier this week said Citibank violated a bank decree on debt recovery after Bank Indonesia concluded an investigation into the death of a consumer at the hands of collectors.
BI and the Indonesian Credit Card Issuer Association are finalizing new rulings and codes of conduct on collection and credit card practices after government regulators told the central bank to detail the regulations to help mitigate negative impacts of various practices.
Citibank’s procedures placed the responsibilities on the third-party collectors, while a BI regulation (PBI) stipulates that banks must be held responsible for collection issues.
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