Indonesia Officials Say Citibank Violated Debt Collection Protocols

Published on:
27 April 2011 at 08:21 a.m. ET

http://www.insidearm.com/news/00017430-indonesia-officials-say-citibank-violated/

Indonesia’s central bank said Tuesday that American bank Citibank violated a bank decree on debt recovery after Bank Indonesia concluded an investigation into the death of a debtor at the hands of debt collectors.

“We have come up with some results and will notify the management of Citibank in Jakarta of our findings,’’ Difi A. Johansyah, a central bank spokesman, told the Jakarta Globe.

Bank Indonesia said Citi was guilty of hiring a third party to collect delinquent credit card payments from Irzen Octa, while refusing to assume responsibility for its actions. The central bank also said Citibank had failed to meet the criteria that allowed such debt collectors to be used.

A spokesperson for Citi’s Indonesia unit said in a statement, “Citibank will cooperate with BI to make improvements in accordance with the recommendations.”