Citi Sued Over Man's Death In Relation To $12,000 Credit Card Bill

In the U.S., failing to pay back your Citibank bills can, at worst, lead to personal bankruptcy and a poor credit rating. In Indonesia, it may get you killed.

Jakarta resident Irzen Octa had, according to Bloomberg Markets magazine, racked up a $12,000 debt, interest included, with the large bank. On March 29, Mr. Octa traveled to Citi's local offices where, police allege, he was brutally beaten by debt collectors. He was pronounced dead on arrival at the local hospital.

The debt collector's attorney has denied the accusations, admitting that while there was some intimidation, it was not physical, according to Bloomberg. Mr. Octa died of a stroke, not a physical altercation, the attorney claims. The debt collectors have, nonetheless, been jailed by Jakarta police.

The practice of hiring debt collectors to intimidate clients is a common practice in Indonesia, according to Jim Castle of the American Chamber of Commerce in Indonesia. “It’s not just Citibank,” Castle says, according to Bloomberg. “Every banker I have talked to who has a credit card business says, ‘There but for the grace of God go I.’”

Physical methods of debt collecting are not uncommon in nations where firms consider local courts to be unreliable or corrupt. In Taiwan, a gang of violent debt collectors who threatened debtors with weapons were arrested by Taiwanese police in May, reports the China Post. The gang was able to market itself as a more efficient and effective means of collecting debts.

In the U.S., intimidation by courts is sometimes employed against debtors. Colorado Kelly Wiedemer, who owed close to $2,000 from a traffic accident, was arrested and held by the authorities until her sister bailed her out several days later. The American Civil Liberties Union in October described the new phenomenon as "the rise of America's new debtors' prisons."

In response to this and other actions by Citibank Indonesia employees -- such as the alleged embezzlement of $1.9 million by former former relationship manager Inog Malinda Dee -- the Bank of Indonesia has mandated that the branch's top executives take a test regarding proper business and banking practices. The Jakarta Globe has reported that several executives failed and will be unable to work as bankers in Indonesia for three years.

Octa's widow has filed a $348 million lawsuit against Citibank Indonesia. The Jakarta Post has reported that Citi has cleared Octa of all debts he may have owed.

Read the full Bloomberg article here

Comments

[frank day]

11:45 AM on 07/04/2011

They cleared him of all debts he may have owed.

Right after they k.i.ll.ed him.

Phenomenal.

[Andy Osinski]

11:59 AM on 07/04/2011

"In the U.S., intimidation by courts is sometimes employed against debtors. Colorado Kelly Wiedemer, who owed close to $2,000 from a traffic accident, was arrested and held by the authorities until her sister bailed her out several days later. The American Civil Liberties Union in October described the new phenomenon as "the rise of America's new debtors' prisons.""
From the same article.

The incident in Indonesia is deplorable but it may be a cultural thing. I don't see banks in the US doing the same. After all, killing someone who owes you money is bad for repeat business. And clearing the debt after killing them does little for the bottom line.

I am concerned, however, about things like the incident in Colorado. Much as I disagree with the ACLU on many points, this is not one of the disagreements.

[Mary Blickhahn]

11:23 AM on 07/05/2011

Colorado is most unkind to consumers. It leads the nation in fraud victims, and does nothing to help its residents in the event fraud is committed, especially if it was done by a bank. Then add the fraud every corporation gets buy with inflicting on the consumers. We have no one to run to for our protection. The judges are obviously paid off at every turn. The laws are designed to punish the citizens and make them pay for bills even the ones they don't actually owe. So finding out someone as put in jail for not paying bills is no surprise!

[mcmutter]

08:23 AM on 07/04/2011

1) we need a tough nationwide usury law .... limit interest to 18% max .....

2 )we need to limit the amount lenders can recover in court .... in some european countries thats limited to two months gross pay ....

[frank day]

11:46 AM on 07/04/2011

In an era where banks are paying less than 1% interest,

18 % is still usurious.

We need to limit how much banksters are allowed to lend.

[Hotness]

06:35 PM on 07/08/2011

Banksters -- Ha Ha Ha. Deadbeats is more like it.

[BigDaddyWow]

08:14 PM on 07/03/2011

I wish that in America a person could meet a debt collector like that. One time, one place and you could whack em all.

[NunyaBus99]

05:17 PM on 07/03/2011

To those that have debts. There is a simple way to stop calls. Under the FDCPA you have the right to send a letter to the banks, debt collection agency's etc,, that all contact must be in writing only and no contact to home, work will be tolerated. They have the right to send letters but once you send that letter (spend the few dollars to get it certified where you have proof they received it) and they receive it they MUST abide by that. Otherwise under the FDCPA you are in your right to sue and win. Many people don't send this letter.

If you get a bankruptcy attorney and only Bankruptcy(except ones that have power of attorney) attorney then whomever is doing the collection must contact the attorney. Attorney's for Divorce don't count because divorce decrees are irrelevant to the bank, they can collect from wither party).

So if you are in that position please take the advice above.

[Sonny Minx]

08:19 AM on 07/04/2011

You're right about the law, but fighting this is easier said than done. If you've been wronged, you can't just call the FTC and ask them to send the enforcers. Most attorneys won't do this kind of work on a contingency basis, so you've got to cough up the dough to hire one.

My guess is that people who are delinquent don't have a few thousand lying around to hire a lawyer. That said, keep records of every communication attempt. The rules are pretty clear, and the violations won't go stale after a few months, so when you do scrape together the money, get to suing!

(FYI: the automated dialers used by banks and collections agencies are usually run by people with a limited understanding of how they work. They frequently will attempt to call people outside of the 8am-9pm window.)

[MSaxe]

03:01 PM on 07/03/2011

If Citibank is sending out henchmen to beat people to collect debts in other countries, it's time for Americans to take bats to Citibank's Wall Street office and start beating them before they bring these methods to the USA.

[fortressfountain]

11:06 AM on 07/03/2011

I had someone call me for 3 days on an unknown number. I knew exactly who it was as no one would try so hard to contact you-unless they want you to buy or donate to a corporate chairty.
Finally I answered the phone and it was a debt collector.
By saying " Do not ever contact me again as I do not owe a debt." This will eliminate the problem until it rolls around to someone else.
If the politicans cared at all about the people they serve they would make this kind of harassment a felony!
But the lobby money must be too good.

[Mary Blickhahn]

11:26 AM on 07/05/2011

I had a bogus debt passed from one collection agency to another due to being able to prove it was fraud. It was a bogus bill from Qwest.

[Rudolf Rothemund]

10:33 AM on 07/03/2011

Go Gettum, lady. In my opinion, Citigroup treated us horribly. If you owe them money and get behind and try debt settlement, from my experience they will call you and call you and CALL you day and evening. I told the caller (who said he/she was from Citigroup) my story and to call my attorney and I was told they don't negotiate with third parties. My rates got raised to just a hair under 30 percent, which REALLY jacked up my debt (thank GOD for the CARD act.. that mostly can't happen anymore). I ended up being forced into bankruptcy. Which is fine because I WANT to pay my debts, and the courts allow me to do it with dignity. But, in your case, to lose your husband they way it happened... that is just too far in my opinion. I hope you prove your case in court and nail this "too big to fail" institution.

[1oldhippie]

10:03 AM on 07/03/2011

and I thought getting a collection call on Easter Sunday was bad...

[William David Smith]

12:15 AM on 07/03/2011

In this economy there are a lot of people unable to pay debts. The same banks that caused collapse of economy without as much as a slap on the wrist are assaulting debtors? They accepted billions of dollars from all taxpayers to bale them out.

[themindline]

11:33 PM on 07/02/2011

Don't let Sallie Mae Corp see this!

[tosc]

07:42 PM on 07/02/2011

given this development of physical intimidation for those that do not pay their debts...I am wondering how that pans out for those banks, millionaires, billionaires and the like who step aside on their loans everyday? What of the care manufacturers who forefeited their loans? So the rule is that you willl beat someone up for $2000- 12,000, but the millionaires are exempt?

[BigDaddyWow]

08:16 PM on 07/03/2011

Millionaires are most certainly not exempt and more than likely the debt goons will pull out all of the stops. Why? Presumably a millionaire has money to pay.

[connie4905]

01:57 PM on 07/02/2011

Really, I don't understand why your making it sound like its the banks fault. We're human beings and as human beings we have a brain not to rank up a credit card up to that level. I guess people are so eager to satisfy an illness of spending that are not aware that could get way out of our limits. If you spend more than what you could pay in a month do not spend it. And I'll tell you. You'll be out of trouble. People start saving for the future start now today right this minute. Credit cards are not free of use its a business they have to make a profit its a business.

[tallkkmoore6]

09:31 PM on 07/02/2011

I agree that people should think before using credit and that credit card companies are businesses, and as such, are entitled to make a profit. But they are NOT entitled to harass or beat people! More importantly, I think it's appalling that an American business would allow that kind of practice just because it's more acceptable in another country! I am an American, and if I traveled to another country, I wouldn't leave my morals at the border just to "do as the Romans do". Unfortunately, these big businesses aren't always know for their morals, are they?

[issamarie7]

07:33 PM on 07/03/2011

Really so according to your logic it is perfectly ok to kill some one over credit card debt. IT IS THE BANKS FAULT FOR ASSAULTING THE INDIVIDUAL WHO CAME INTO THEIR OFFICE. My mistake you probably did not even read the article. For all anyone knows the man went into the office to setup a payment arrangement. By the way just because the credit card companies state the debt was at 12,000 it does not neccessarily follow that the guy actuall purchased 12000 worth of merchandise with penalties and astronomical APR rates the original debt is probably more like 5,000. The real problem with the U.S. is idiots like you who don't think before you speak and follow the corporate pigs right to the slaughter.

[Osusuki]

09:30 AM on 07/02/2011

I wonder how many heart attacks and strokes in America were the result of continuous and illegal debt harrassment? It's a pity it took someone losing his life to trigger it, but the lawsuit (and hopefully the judgement) is sorely needed and most welcome.

[carlgt1]

05:15 AM on 07/02/2011

A Libertarian dream!

[Ronald Malaney]

11:37 PM on 07/01/2011

were they dressed like vikings?

[O Dannyboy]

11:02 PM on 07/04/2011

Please stop back here when your spouse is beaten to death so that we can offer you a like level of compassion.