Data Protection Issues on Global Loan Portfolio Sales

Sancho Guibert, Senior Legal Counsel and Senior Vice President, Citibank España, S.A., Spain

The current economic and financial situation is providing for interesting investment opportunities in consumer loan portfolios owned by banking entities in many countries. While these portfolios may comprise either performing or non performing loans, portfolios of write-off loans are especially challenging for both in-house counsels and external advisors, as certain legal issues may arise as soon as the investor and final purchaser starts all available judicial and non-judicial actions against the debtors once the loan portfolio has been assigned by the initial creditor. The average profile of the debtors of write-off loans will not probably be the best-in-class, as the initial creditor shall have tried all available recovery methods excepting the judicial actions (i.e. frequent recovery phone calls and communications by the collection units of the bank, offerings of payment plans) and, still, the debt has not been paid after an average period of 180 days. Additionally, it should be noted that the behavior of these stressed debtors in default aims to take any available measure towards payment delays (i.e. formal claims before the regulators, alleged fraud reports, commencement of bankruptcy procedures).

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Spain Data Protection Banking & Finance December 2011 Vol. 5, No. 17, Autumn 2011

Sancho Guibert

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SANCHO GUIBERT has been with Citibank for 13 years as Legal Counsel: corporate and investment bank, private bank and currently at the consumer bank unit. Wide additional compliance experience. 2 years at Baker & McKenzie as associate for the commercial law department 1 year at Mayer, Brown & Platt, New York office, Latin American Practice Group 9 months at Uría Menéndez in the New York Office Summer intern in the Legal Department at Banco Santander, NY Branch

Citibank España, S.A.

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Citigroup, Inc., a global financial services company, provides consumers, corporations, governments, and institutions with a range of financial products and services, including consumer banking, credit cards, corporate and investment banking, securities brokerage, and wealth management. Citigroup Inc. has approximately 200 million customer accounts and operates in approximately 140 countries. The company was founded in 1812 and is based in New York, New York.

Spain Data Protection Banking & Finance December 2011 Vol. 5, No. 17, Autumn 2011