Six banks take credit card holders to court

JAKARTA (JP): Six local banks have filed bankruptcy claims against two credit card holders for not paying their bills, according to a document released by the Jakarta Commercial Court.

Bank Lippo, Bank Papan Sejahtera (BPS), Bank Niaga, Bank Mashill Utama and PT Sejahtera MBF Multifinance jointly filed a bankruptcy claim against Moch. Taufic Solihin T., who holds credit cards issued by the banks.

The court said Taufic owed the banks Rp 297.17 million (approximately US$395,000).

Bank Lippo is owed Rp 136.68 million, BPS is awaiting payment of Rp 14.07 million, Bank Niaga is owed Rp 27.96 million, Bank Mashill Rp 12.89 million and PT Sejahtera MBF Multifinance Rp 69.98 million.

The court said that BPS, Bank Niaga and Bank Tamara had also filed a similar joint petition against Siti Alfiah, a credit card holder who has failed to pay her bills worth Rp 132,91 million.

The court document said Siti owed Rp 14.31 million to BPS, Rp 108.63 million to Bank Niaga and Rp 9.96 million to Bank Tamara.

"Siti Alfiah has not even serviced her debts to the banks since the end of 1997," the document said.

The two cases mark a milestone for the new bankruptcy law, being the first time financial institutions have taken individual credit card holders to court.

Most bankruptcy cases so far heard by the court have involved local business which are heavily indebted to foreign creditors.

A court official said that Taufic's case would be heard on Dec. 7, while Siti will face judgment on Dec. 9.

The court has also received a bankruptcy petition pitting businessman Hasim Sutiono against PT Kutai Kertanegara Prima Coal for the latter's failure to repay a Rp 1 billion loan.

The court document revealed that Hasim gave PT Kutai Rp 1 billion on July 16, 1996, in exchange for a 61 percent stake in the company and a seat on its supervisory board.

The mining firm did not meet these conditions and so Hasim asked them to repay the money. Only Rp 500 million was repaid, forcing the businessman to seek redress with the court.

"Hasim will take PT Kutai to court for its failure to repay the Rp 1 billion loan in full," the document said.

The first hearing pitting Hasim against PT Kutai will take place on Dec. 4. (aly)