2. Personal credit guarantee compensation refers to the behavior that the guarantor fails to perform his obligations as agreed in the contract and the guarantor performs his obligations on his behalf. Generally speaking, a debt of a personal credit inquiry subject was repaid by his guarantor, and he failed to fulfill his repayment obligation.
Extended data
Guarantee compensation is generally divided into two steps.
The first step is to confirm the validity of the creditor's rights of the lending bank;
The second step is to implement guarantee compensation.
Confirm the validity of the lender's claim
Confirming the validity of the claim is the premise of implementing the guarantee payment, which has two main purposes: first, re-examine the validity of various contracts, verify the actual performance of the contracts, and lay a good foundation for the recovery work. The second is to avoid moral hazard caused by quick and simple payment, that is, bank staff lose the enthusiasm of urging borrowers to owe money.
Implement guarantee compensation
The implementation of guarantee compensation usually adopts the following three ways:
After one-time payment, the guarantee institution shall exercise the right of recourse.
The guarantee institution performs the repayment obligation on behalf of the borrower, and the guarantee compensation will be carried out after all the legal proceedings are completed, so as to promote the realization of the security right.
The lender shall first implement the borrower's assets to make up for the loan losses through the first procedure, and the uncollected loans shall be paid off by the guarantee institution in subrogation. Because legal proceedings and enforcement often take a long time, this payment method is easy to affect the lender's cash flow, cause disputes between the lender and the guarantee institution, and reduce the attractiveness of the guarantee institution to the lender.
Baidu Encyclopedia: Personal Credit Report