The ban on issuing new credit cards was effective as of yesterdayJakarta (ANTARA News) - Bank Indonesia (BI, the central bank) has banned Citibank to use the services of a third party to collect its credit-card-holder debts while police are investigating the recent death of Citibank customer Irzen Octa.
"Today one more sanction is given to them. Citibank may not use outsourced debt collectors," the central bank`s deputy governor, Budi Rochadi, said after a meeting with House Commission XI here on Friday.
Earlier, Bank Indonesia had banned Citibank to collect credit card funds and seek new Citigold customers as of March 16 and new credit card customers as of April 7.
"The ban on issuing new credit cards was effective as of yesterday. Yesterday, we sent them a notice not to seek new credit card holders but there is no problem with old card holders," he said.
Regarding the ban on the use of a third party`s service Budi said the rule was only for Citibank while discussion on it was still being made with the Association of Indonesian Credit Cards (AKKI).
"It is not yet effective for all banks but we have met with AKKI that would discuss it in the next two weeks. We have already asked them to accelerate it," he said.
Budi said the rule actually was not related to debt collector issue only but also about credit card marketing that has so far also been outsourced.
The House Commission XI was expected to send an official complaint and demand the Citibank N.A central office in New York to ask for an apology and be responsible legally in material as well as immaterial terms over the action of the Citibank Indonesia that had led to the death of an Indonesian citizen.
"The Commission XI and House of Representatives have been very disappointed and deplored Citibank`s way of collecting debt that had allegedly caused the death of Irzen Octa at its branch office at Jamsostek Tower on March 29," Commission XI deputy chairman Achasanul Qosasi said.
He read the recommendations and conclusion of the meetings on Tuesday and Wednesday along with Citibank, BI and police officials before BI deputy governors Budi Rochadi and Halim Alamsyah and Citibank CCO Shariq Mukhtar, the wife and children of Irzen Octa.(*)
Editor: Aditia Maruli Radja
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