According to him, the banks apply to collection agency to solve this problem due to troubled loans increased and the banks have not special opportunities to repay these debts: “Banks entrust us with these solve these problems and will pay service fee from levied funds. This is more useful than spending additional money to return old debts”.
Main clients of BOA collection agency are banks ad individuals and legal entities consuming sale through credit: “Bank give us the troubled loans as a portfolio with hundreds of loans. We work with these credits and gradually return. Following returning of news, new troubled clients are transferred to us. Moreover, we have individuals and legal entities consuming sale through credit”.
Nearly 300 of troubled loans are the credits for telephone. There are even AZN 40-credit among them: “To levy such debts, the orders are received as portfolio”.
Mustafayev noted that there is a state company between the agency’s clients, which can’t receive money under the fulfilled contract. Some companies try to insure themselves from troubled loans beforehand: ‘Others sign agreement with us before the lending, so that, in future if there is any problem in loans, we will help them’.
BOA director said that the persons, who lend and can’t take money back, can also use the service of collection agency, under one condition – the debts must be certified by a notary.
In general, within the past 7-8 months, BOA agency has collected and repaid 30% of debt portfolio.
He added that service fee at the agency makes 20-555 of debt amount depending on debt’s history. Because, as repayment of old debts is difficult, the process costs more. Service fee for 4-years debt makes 505. The fee is lower for individuals – 15-20%.
BOA collection agency operates not only in Baku, but also in the regions: ‘We have already had clients in Ganja and Nakhchivan. Though our main office in Baku, our employees often go on a business trip to the regions’.