FSC fines Taishin Bank for debt collection practices

• By Kao Shih-ching / Staff Reporter

The Financial Supervisory Commission (FSC) has fined Taishin International Bank (台新銀行) 10 million Taiwan dollars (台新銀行) for the lender’s “poor internal controls”, the commission said yesterday.

Regular inspection found that Taishin Bank had collected undue debts from at least 10 people over the past two years, Banking Bureau deputy general manager Lin Chih-chi (林志吉) told a conference. Press.

Those targeted were spouses or colleagues of debtors, Lin said, adding that financial regulations only allow banks to collect debts from debtors or their guarantors.

The fact that Taishin Bank targeted the wrong people and even sent them legal documents indicates that the lender lacks sufficient internal control mechanism and failed to comply with regulations, he said.

The commission also found that Taishin Bank contacted at least 100,000 relatives of debtors over the past 10 years to collect the debt, Lin said.

The commission also yesterday asked Taishin Bank to use a stricter risk factor to calculate its capital adequacy.

The bank may need NT$2 billion in fresh capital to maintain its adequacy level under the tighter rules, the commission said.

The criminal action against Taishin Bank came after the commission on Wednesday fined 11 financial institutions, including Shin Kong Life Insurance Co (新光人壽) and China Life Insurance Co (中國人壽), for poor internal controls.