Comments on: Kuwaiti Gov’t: A FREE Collection Agency http://www.alphadinar.com/2009/10/05/kuwaiti-govt-a-free-collection-agency/ Finance blog focusing on the Arabian Gulf region (GCC) Thu, 09 Feb 2012 01:31:23 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Faisal http://www.alphadinar.com/2009/10/05/kuwaiti-govt-a-free-collection-agency/comment-page-1/#comment-2881 Faisal Tue, 24 Nov 2009 07:17:54 +0000 http://www.alphadinar.com/?p=2312#comment-2881 I run finances at a private company here in Kuwait and deal with extremely high credit risk given the sector we work in. Your article seems to make collection and having a travel block on someone as a simple matter. In order for a person to be prohibited from travel, the creditor has to file a lawsuit against that person/company, and prove to the courts that the company is indeed owed money. The credit risk is much higher here in Kuwait given that there is no system that business can rely on to asses credit worthiness. Furthermore, from a legal point of view, anyone who writes a check while his account has insufficient funds would be sued by the creditor AND the government as it is considered a public offense (undermining trust in commercial operations). Without these regulations, I guarantee you that Kuwait would be one of the worst places to conduct business, and trust me it's not too far off now. I run finances at a private company here in Kuwait and deal with extremely high credit risk given the sector we work in. Your article seems to make collection and having a travel block on someone as a simple matter. In order for a person to be prohibited from travel, the creditor has to file a lawsuit against that person/company, and prove to the courts that the company is indeed owed money. The credit risk is much higher here in Kuwait given that there is no system that business can rely on to asses credit worthiness. Furthermore, from a legal point of view, anyone who writes a check while his account has insufficient funds would be sued by the creditor AND the government as it is considered a public offense (undermining trust in commercial operations). Without these regulations, I guarantee you that Kuwait would be one of the worst places to conduct business, and trust me it’s not too far off now.

]]> By: “It’s everything, stupid.” « Alpha Dinar- talking GCC finance http://www.alphadinar.com/2009/10/05/kuwaiti-govt-a-free-collection-agency/comment-page-1/#comment-2858 “It’s everything, stupid.” « Alpha Dinar- talking GCC finance Sun, 22 Nov 2009 15:23:16 +0000 http://www.alphadinar.com/?p=2312#comment-2858 [...] abolished. There is severe moral hazard in our nation and its a vicious downward spiral cycle. Our government acts as a free collection agency for businesses. Our parliament sponsors morally hazardous acts such as sending families for [...] [...] abolished. There is severe moral hazard in our nation and its a vicious downward spiral cycle. Our government acts as a free collection agency for businesses. Our parliament sponsors morally hazardous acts such as sending families for [...]

]]> By: Kuwaiti Gov't: A FREE Collection Agency « Alpha Dinar- talking finance | Kuwait today http://www.alphadinar.com/2009/10/05/kuwaiti-govt-a-free-collection-agency/comment-page-1/#comment-2470 Kuwaiti Gov't: A FREE Collection Agency « Alpha Dinar- talking finance | Kuwait today Fri, 23 Oct 2009 10:43:33 +0000 http://www.alphadinar.com/?p=2312#comment-2470 [...] View original post here: Kuwaiti Gov't: A FREE Collection Agency « Alpha Dinar- talking finance [...] [...] View original post here: Kuwaiti Gov't: A FREE Collection Agency « Alpha Dinar- talking finance [...]

]]> By: Keynesian http://www.alphadinar.com/2009/10/05/kuwaiti-govt-a-free-collection-agency/comment-page-1/#comment-2315 Keynesian Mon, 05 Oct 2009 14:07:24 +0000 http://www.alphadinar.com/?p=2312#comment-2315 It isn't! According to Al-Qabas, this statistic is YTD. It runs from January to August 31st. 63,000 are Kuwaitis and 49,000 of those individuals have debt outstanding of less than KD 5,000. As for collection agencies, I guess some may exist. However, the point is that they have to do LESS work since they can easily call someone up and inform them that they are intially going to be ban from traveling and perhaps even go to jail. It isn’t! According to Al-Qabas, this statistic is YTD. It runs from January to August 31st. 63,000 are Kuwaitis and 49,000 of those individuals have debt outstanding of less than KD 5,000.

As for collection agencies, I guess some may exist. However, the point is that they have to do LESS work since they can easily call someone up and inform them that they are intially going to be ban from traveling and perhaps even go to jail.

]]> By: Keynesian http://www.alphadinar.com/2009/10/05/kuwaiti-govt-a-free-collection-agency/comment-page-1/#comment-2314 Keynesian Mon, 05 Oct 2009 13:55:40 +0000 http://www.alphadinar.com/?p=2312#comment-2314 Exactly! Exactly!

]]> By: Ra'ad http://www.alphadinar.com/2009/10/05/kuwaiti-govt-a-free-collection-agency/comment-page-1/#comment-2312 Ra'ad Mon, 05 Oct 2009 07:39:37 +0000 http://www.alphadinar.com/?p=2312#comment-2312 I suspect this statistics is back dated to pre-invasion. As for the non-Kuwaities, the statistics includes the ones that owed the banks/credit companies prior to the invasion and left the country for good, never bothered to pay after they settled somewhere else. What happened to the credit rating company (private, later bought by Al Dar, not sure!) that was set-up in 1998/9 in Kuwait to collect information on individuals to be sold to finance providers? I suspect this statistics is back dated to pre-invasion. As for the non-Kuwaities, the statistics includes the ones that owed the banks/credit companies prior to the invasion and left the country for good, never bothered to pay after they settled somewhere else.

What happened to the credit rating company (private, later bought by Al Dar, not sure!) that was set-up in 1998/9 in Kuwait to collect information on individuals to be sold to finance providers?

]]> By: Abdulmohsen http://www.alphadinar.com/2009/10/05/kuwaiti-govt-a-free-collection-agency/comment-page-1/#comment-2310 Abdulmohsen Mon, 05 Oct 2009 06:25:59 +0000 http://www.alphadinar.com/?p=2312#comment-2310 Good point! If we have the best collection agency around why would banks waste time in researching the applicant's financial capabilities? Good point! If we have the best collection agency around why would banks waste time in researching the applicant’s financial capabilities?

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