Expat leaving debts in Chile

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tiagoabner
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Re: Expat leaving debts in Chile

Post by tiagoabner » Wed Feb 06, 2019 6:05 am

loulou23 wrote:
Tue Feb 05, 2019 6:20 pm
Gloria wrote:
Tue Feb 05, 2019 5:03 pm
Donnybrook wrote:
Tue Feb 05, 2019 4:26 pm
I am not sure how you plan to pay back this debt (plus whatever interest accrues) and would be interested to know how this would work.
She won´t and I can bet you anything, anything you want. This is what´s going to happen.....hear me out. She´ll go thru the International Police like an innocent white dove. Will take her seat on the plane and after asking for a drink will say...."those dumbass chileans!" "I got away with it! YAY!
What are you talking about Gloria!?. If I was going to that then why would I be registering on this site, trying to find out advice.I would be on my British Airways sipping gin with not a care in the world! It seems you have a serious chip on your shoulder about expats. And who by the way said I'm white.
That's Gloria, our resident troll. Gloria posts are rarely constructive and it seems that her goal is to see how much of an asshole admin let's her be. Ignore Gloria, don't feed the trolls.

On the topic of debt repayment, use Transferwise to lower the transfer fees if making minimum payments is viable for you. If not, contact your CC company and arrange with them to get a "período de gracia" on your card payments. It can be done, although you may need to give it multiple shots; the executive may not know how/want to do it.

Defaulting on the payments will obviously hurt your credit, so you need to take care of it if you want to live in Chile in the future. Yes, you can live with having a bad credit score, but there's no reason to do so if you can avoid it.

On the topic of morals of defaulting: while defaulting does, indeed, raise the costs for all other clients, the default rates are calculated as part of the interest rate. A single person is but a grain of sand in the grand scheme of things. There's even less moral ground for debt shaking you, as you're only postponing payments.
I'm NOT your lawyer, accountant or financial planner. All information at this post should be considered for your entertainment only. Consult a professional before making a decision regarding whatever topic was mentioned in this post.

Julito
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Re: Expat leaving debts in Chile

Post by Julito » Wed Feb 06, 2019 12:04 pm

It won´t have any repercussions on your relationship with your UK bank, they won´t know about it. And nobody can stop you leaving Chile over a credit card debt, they won´t even bother trying to chase you. As mentioned above, changing circumstances leading to defaults or slow repayments are all factored into the risk.
What generally happens with a straight up default on say 50k is the bank sells the debt to a debt collector for say 10k and it´s up to the debt collector to see if he can recover the rest plus interest and pocket it. So he assumes the risk but in some cases he buys a dud, for example when someone has emigrated.

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Re: Expat leaving debts in Chile

Post by admin » Wed Feb 06, 2019 12:58 pm

As for it affecting expat's in Chile's ability to get accounts, I don't think it even makes a statistical blip on the banking systems radar screen compared to just a couple countries. The Peruvians, Bolivians, Colombians, etc have been coming to Chile for decades, obtaining residency, maxing their credit, and running away.

There were reports a few years ago about organized Bolivian gangs coming over the boarder, using false names and documents to obtain residency, maxing their credit, then running away. They would return a little later, with a different set of immigration documents, and do it all over again with another name.

The real culprit for all of that is the banks in Chile. There is no good reason to attach millions of pesos of credit to basic savings or checking accounts. If the banks pulled their heads out of their rear, and joined even 19th century international banking practices, they would not be loosing money to people that can not afford to pay back their debts. Even more, they would probably have a whole lot more people that need basic banking, start with a simple account, and then apply for credit.

I went to the ATM yesterday to take out some spending cash. I have to stand there waiting while they tried to give me a 6 million peso consumer credit loan on the screen. I had ZERO pesos in my account. My wife regularly cleans out my account, to use the money for other things. Occasional she leaves me some spending money. Guess what? I was still able to take $40,000 pesos out, go buy gas, go buy some other things, with my account that had 0 pesos, without even taking the consumer loan they were pushing. Because there is a credit facility attached to my account that allows me to overdraw, and it is automatically paid. Works just like a credit card. Even a plane jane debit card in Chile, is really a credit card. Of course, I told my wife she needs to put some money back in my account when I got home, but who offers $10,000 U.S. to someone with no money in their account?

That is the game. The banks want you to stress your financial situation. They don't want you to be able to easily pay your bills. If I deposit say 10 million pesos in my account each month, they will offer me 50 or 60 million in consumer credit at the stupid ATM. They are playing the impulse buy game, and they know Chileans are really bad at resisting that. They do everything in their power, to get you to leverage up beyond your means. The interest rates are like 23% or some ridiculous rate on those consumer loans.

I am public enemy number one as far as the bank bean counters are concerned and the same logic of people being "bad people" for not paying their debts.

I pay cash for everything. Every loan, mortgage, or other credit I have ever taken in Chile, I have paid off way, way in advance. I took a 15 year mortgage, and paid it off in 6 months (long story). I don't even have a valid credit card. I keep ordering credit cards, and forgetting to pick them up at the bank. I think I am on my third set of cards that expired in a drawer. My last set I had in had was like 5 years ago, and they expired unused because I forgot my pin from lack of use.

But, to the accountants, I am the sucker that is robbing them of their interest payments, fees, penalties, etc. They would like nothing more than to trick me in to taking way more than my annual income can support, so they can really turn those interest rate screws and penalties.

Guess what?

The banks all over the world penalize people's credit reports for being a good credit risk and paying off their debts early.

I am waiting for the new Fintech industry to put all these old school banks down (even if that kills my stock investment a bit). They are all 19th century. Most should not even exist anymore.
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eeuunikkeiexpat
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Re: Expat leaving debts in Chile

Post by eeuunikkeiexpat » Wed Feb 06, 2019 1:25 pm

admin wrote:
Wed Feb 06, 2019 12:58 pm
The banks all over the world penalize people's credit reports for being a good credit risk and paying off their debts early.
Not necessarily, in the decade after I left, my US Empire credit score increased and now sits at 840 with both TransUnion and Experian. For the record, I am a pay in full and on time guy.

Regarding credit offers, it is still impossible for this permanent resident to get a Cuenta Corriente or a Chile credit card, but who needs them when I've done fine without. Screw the banks it they think a newly arrived Peruvian bringing no resources making the minimum wage on a possible false work contract deserves millions in credit just because of "official" Chile income.
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Re: Expat leaving debts in Chile

Post by Donnybrook » Wed Feb 06, 2019 2:32 pm

Regarding credit offers, it is still impossible for this permanent resident to get a Cuenta Corriente or a Chile credit card
This is what is strange, that you can't get one but someone on a temporary visa did. I know some foreigners working here are able to get an account because the company they work for does a lot of business with a bank so it is a sort of "pituto" favour by the bank. That may be the case here. Or some bank ejecutivo made a bad judgement call They do get a lot of pressure to add new customers. Hope it doesn't negatively affect the ejecutivo.

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Re: Expat leaving debts in Chile

Post by admin » Wed Feb 06, 2019 3:24 pm

eeuunikkeiexpat wrote:
Wed Feb 06, 2019 1:25 pm
admin wrote:
Wed Feb 06, 2019 12:58 pm
The banks all over the world penalize people's credit reports for being a good credit risk and paying off their debts early.
Not necessarily, in the decade after I left, my US Empire credit score increased and now sits at 840 with both TransUnion and Experian. For the record, I am a pay in full and on time guy.

Regarding credit offers, it is still impossible for this permanent resident to get a Cuenta Corriente or a Chile credit card, but who needs them when I've done fine without. Screw the banks it they think a newly arrived Peruvian bringing no resources making the minimum wage on a possible false work contract deserves millions in credit just because of "official" Chile income.
Yea, that is typical. Best thing I ever did for my U.S. credit rating, was leave. If you don't live there, your credit report is not getting hit constantly all day every day, every time you sneeze wrong, apply for public library card, or whatever other ho hum daily activity the credit companies now require a credit report to do. You probably can not order beer in the U.S. anymore, without a credit check of some sort.
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mem
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Re: Expat leaving debts in Chile

Post by mem » Wed Feb 06, 2019 4:02 pm

eeuunikkeiexpat wrote:
Wed Feb 06, 2019 1:25 pm
admin wrote:
Wed Feb 06, 2019 12:58 pm
The banks all over the world penalize people's credit reports for being a good credit risk and paying off their debts early.
Not necessarily, in the decade after I left, my US Empire credit score increased and now sits at 840 with both TransUnion and Experian. For the record, I am a pay in full and on time guy.

Regarding credit offers, it is still impossible for this permanent resident to get a Cuenta Corriente or a Chile credit card, but who needs them when I've done fine without. Screw the banks it they think a newly arrived Peruvian bringing no resources making the minimum wage on a possible false work contract deserves millions in credit just because of "official" Chile income.
Wow! 840 is pretty impressive in this day and age.

Around 2007 I went to a dealership and bought a car outright with cash. Except I made the mistake of thinking I could just write them a personal check for the amount. So I wrote the check and they were gobsmacked. Then they ran my credit report and found I had 830 and they were gobsmacked again saying they couldn't remember having a customer with as high a FICO...but still they couldnt just let me pay with a personal check. I was just confused why they were gobsmacked and why they were running my credit to begin with since I was paying for it outright. I guess I figured they could just call the bank or whatever and make sure the money was there once it got to this point, but even that wasn't going to cut the mustard
Then they had to write a full on loan for the car ANYWAY...just in case my check bounced. Now I was gobsmacked. They assured me that the loan would only kick in if the check bounced. I thought for sure they were scamming me into a loan. It took hours and hours just to pay for this car with cash, albeit with a check. I figured how else would anyone pay for a car in cash? It never occurred to me that someone would bring in physical cash or a cashiers check.
After the fact I realized what they were thinking and understood they didn't want me driving off the lot with a vehicle and just a personal check. I supposed I should have gone in with a duffel bag full of cash...of course then I would have triggered some bank withdrawal rules trying to take out so much cash, and if I tried to do it on the sneak, I would have been hit with structuring. Of course this all before the days of me even knowing about such things. I suppose I could have used a cashiers check, but at the time I had never used a cashiers check but once or twice in my life in the US and usually it was just a money order for an insignificant amount of money to satisfy some bureaucracy of something

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Re: Expat leaving debts in Chile

Post by HybridAmbassador » Wed Feb 06, 2019 5:28 pm

eeuunikkeiexpat wrote:
Wed Feb 06, 2019 1:25 pm
admin wrote:
Wed Feb 06, 2019 12:58 pm
The banks all over the world penalize people's credit reports for being a good credit risk and paying off their debts early.
Not necessarily, in the decade after I left, my US Empire credit score increased and now sits at 840 with both TransUnion and Experian. For the record, I am a pay in full and on time guy.
Wholly Mackerel! 840 FICO score...Very impressive EEUU-san. If you enter Lexus~Toyota for auto loan, you're "TIER 1 Plus" type of most desireable individual. Chile's DICOM rating should recognize US FICO for granting Chilean CC and cuenta corriente for those expats in Chile with such high FICO score.
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Re: Expat leaving debts in Chile

Post by HybridAmbassador » Wed Feb 06, 2019 5:38 pm

mem wrote:
Wed Feb 06, 2019 4:02 pm
eeuunikkeiexpat wrote:
Wed Feb 06, 2019 1:25 pm
admin wrote:
Wed Feb 06, 2019 12:58 pm
The banks all over the world penalize people's credit reports for being a good credit risk and paying off their debts early.
Not necessarily, in the decade after I left, my US Empire credit score increased and now sits at 840 with both TransUnion and Experian. For the record, I am a pay in full and on time guy.

Regarding credit offers, it is still impossible for this permanent resident to get a Cuenta Corriente or a Chile credit card, but who needs them when I've done fine without. Screw the banks it they think a newly arrived Peruvian bringing no resources making the minimum wage on a possible false work contract deserves millions in credit just because of "official" Chile income.
Wow! 840 is pretty impressive in this day and age.

Around 2007 I went to a dealership and bought a car outright with cash. Except I made the mistake of thinking I could just write them a personal check for the amount. So I wrote the check and they were gobsmacked. Then they ran my credit report and found I had 830 and they were gobsmacked again saying they couldn't remember having a customer with as high a FICO...but still they couldnt just let me pay with a personal check. I was just confused why they were gobsmacked and why they were running my credit to begin with since I was paying for it outright. I guess I figured they could just call the bank or whatever and make sure the money was there once it got to this point, but even that wasn't going to cut the mustard
Then they had to write a full on loan for the car ANYWAY...just in case my check bounced. Now I was gobsmacked. They assured me that the loan would only kick in if the check bounced. I thought for sure they were scamming me into a loan. It took hours and hours just to pay for this car with cash, albeit with a check. I figured how else would anyone pay for a car in cash? It never occurred to me that someone would bring in physical cash or a cashiers check.
After the fact I realized what they were thinking and understood they didn't want me driving off the lot with a vehicle and just a personal check. I supposed I should have gone in with a duffel bag full of cash...of course then I would have triggered some bank withdrawal rules trying to take out so much cash, and if I tried to do it on the sneak, I would have been hit with structuring. Of course this all before the days of me even knowing about such things. I suppose I could have used a cashiers check, but at the time I had never used a cashiers check but once or twice in my life in the US and usually it was just a money order for an insignificant amount of money to satisfy some bureaucracy of something
Ha,ha,haa they ran your credit 'cause your written check could have bounced pronto and the dealer wanting to know who were you, before letting leave with that expensive Automobile. If for any reason, that Auto to be coming back to their lot, then they have to sell that vehicle as an "used" vehicle and lose money. So they have to make sure you are a bonafide individual, thus let fill credit app then run your credit score. But needless to say, 2007 days, an individual with a FICO of 830 was in the Rockefeller class !
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Re: Expat leaving debts in Chile

Post by admin » Wed Feb 06, 2019 6:54 pm

I just told this story the other day on another thread about the kid that made millions trading penny stocks. He went in to buy a new Corvette, and in the article the dealer said she had not had anyone pay cash for a car in some 30+ years.

That is the american bureaucracy, trying really hard to paper over their mother of all debt bubbles. America is LITERALLY morally and financially bankrupt.

Talk about stiffing a lender. Just wait until that 300+ trillion dollars of paper bullshit blows up in the United States. The new high FICO score in the country, will be held by anyone that only defaulted on $10,000 U.S. in debt.

I bet by 2028 or 2029, we get to mark the 100 year anniversary of the Great Depression, with another Greater Depression.
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Re: Expat leaving debts in Chile

Post by fraggle092 » Wed Feb 06, 2019 7:25 pm

Perhaps you have stood in the queue in Sodimac patiently waiting while the person in front of you has a long involved negotiation with the cashier over the amount they can pay using their CMR Falabella store card.

I used to wonder why this couldn't be done at a separate checkout to speed up the process for other customers until I realized that the store-card payers are the preferential customers. Given the usurious interest rates that the stores charge, it makes sense. They all do the same, selling already heavily marked-up, low-quality Chinese tat on credit at 30%+ interest rates. Negocio redondo.
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Re: Expat leaving debts in Chile

Post by admin » Wed Feb 06, 2019 9:24 pm

fraggle092 wrote:
Wed Feb 06, 2019 7:25 pm
Perhaps you have stood in the queue in Sodimac patiently waiting while the person in front of you has a long involved negotiation with the cashier over the amount they can pay using their CMR Falabella store card.

I used to wonder why this couldn't be done at a separate checkout to speed up the process for other customers until I realized that the store-card payers are the preferential customers. Given the usurious interest rates that the stores charge, it makes sense. They all do the same, selling already heavily marked-up, low-quality Chinese tat on credit at 30%+ interest rates. Negocio redondo.
and that is why I buy fallabela stock any time it dips.

FYI, fallabela owns sodimac and banco fallabella that specializes in sub-prime credit market.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
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From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

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