I need a legal advice.
I live with my girlfriend in Taiwan together.
We rent a house and are at the meoment really happy.
Problem:
She borrow money from 2 banks before(2 credit cards, 600000 NT$) and pay since 3 years nothing to the bank.
Yesterday we got a letter from one bank if she not pay within one week, the bank will get the house of her brother.
In the family register is written that she lives there but the house is own of here brother.
She never owned that house before.
Is that possible in Taiwan if she borrow money from the bank and can’t pay after
that another one from the family have to pay? Father, brother or also her daugther.
What is with the bank account of her 13years old daughter
Can the bank do this?
I’m worry because I don’t know rules here in Taiwan.
WTF? Six hundred thousand dollars on credit cards and she makes no payments in 3 years! If her brother was a co-signer, guarantor or some other kind of reference, then, yes the bank would be well within their rights to hold him liable, especially if her household registration is listed there.
If I were you, I’d be going straight to the bank and paying them everything I possibly could immediately, or at the very least, working out some kind of payment system if it’s not already past that point.
There are many payment options, as long as the person involved is willing to cooperate. The Gov’t has several plans to assit in payment and laws to prevent abuses. There is help for her as long as she is willing to step up. There is a lot of leeway to work out a payment plan.
Yes, a cosigner will be liable, and yes, they can lose the house. This is very serious.
Usually, inheritance of debts is after death, but even that is regulated now by law. For example, now if the parents had the credit card debt, the bank cannot charge the kids. It is not like before.
If she doesn’t pay now, the debt will be deducted from any salary from any job she takes afterwards. Yes, they can trace that.
Now, you must check if the debt is really for a legal bank credit card or she took an illegal loan. Then there is little hope. Under no circunstances let her cover a bank debt with a shark loan, or she will pay with her life or worse.
The differences in laws concerning credit cards between the US and here is kind of interesting.
For example, in the US we have the Fair Credit Billing Act, which means if we buy something with the credit card but didn’t receive the product or service and the vendor won’t cooperate, the credit card company has to refund the money and go after the vendor themselves. That would have been very useful when Alexander went under…
And in the OP’s situation, co-sign or not, the house would be in no jeopardy because credit cards loans are unsecured debt. The only thing the bank can trash is your credit rating, and of course hound you to death with debt collectors.
But alas, we’re not in the US… but it is interesting, though.
Living high on the hog on NT$600,000 outstanding credit? I BET you were happy!
Not for much longer, though.
She needs to get to the bank and figure something out FAST! Rest assured that you’re going to have very little spending money for the foreseeable future.
I need a legal advice.
I live with my girlfriend in Taiwan together.
We rent a house and are at the meoment really happy.
Problem: She borrow money from 2 banks before(2 credit cards, 600000 NT$) and pay since 3 years nothing to the bank.
Yesterday we got a letter from one bank if she not pay within one week, the bank will get the house of her brother.
In the family register is written that she lives there but the house is own of here brother.
She never owned that house before.
Is that possible in Taiwan if she borrow money from the bank and can’t pay after
that another one from the family have to pay? Father, brother or also her daugther.
What is with the bank account of her 13years old daughter
Can the bank do this?
I’m worry because I don’t know rules here in Taiwan.[/quote]
Why not? If they signed as a guarantor, they must pay. But if the bank is going to take their house, I doubt they won’t get something back…unless they live in a really run down house. 600kNT for a house is nothing.
Word of advice: cut up your GF credit cards. She can’t handle the responsibility. Better she learn this lesson now than when you are married and have 3 kids.
Hello there,
One thing I don’t understand from your description of problem.
If your girfriend has been paying nothing to the bank since three years ago, it should not be the first time that the bank/ creditor would send such letter to her.
Perhaps you’d have a frank talk with her about her real debts situation?!
I don’t know who you bank with but I have had no problem making chargebacks through Citibank and Amex in Taiwan.[/quote]
Llary, can you share a bit of your experience on how this works (or has worked for you) here. It sounds like the kind of thing that could be good to know in a pinch.
Taiwan must be one of the easiest places in the world to get a credit card (if you’re a Taiwanese citizen of course). My wife has hordes of cards and almost evey time we go shopping at RT Mart, reps from the credit card companies almost beg her to apply for yet another one.
I had a discussion about credit card debt with some of my colleagues the other day and they ALL said the same thing: if if they can’t pay their debts their parents will have to pay.
When was the last time you made a payment? There is a statue of limitation. If they didn’t contact you for the period you might have argument. If you have made acknowledgment or a payment it has been renewed. Although for most credit card debt it is 2 years here in the lovely land of Taiwan. I would hire an consultant immediately if you cannot pay. I strongly recommend PWC here in Taiwan. Know you can find ones cheaper, but when they magically charge you 20 extra hours you can’t do anything. With a bigger firm you know what your getting. The bank can and will foreclose your house if there is a 2nd signor or guarantor. The process is long but they can do it.