Debt Collection in China
Do you have Chinese customers who do not pay your overdue invoices? We can help you with debt collection in China and make sure your claims are paid. Use our international debt collection service and let our Chinese debt collection agency start collecting your debt today! Read on to see how it works.
Debt collection in Hong Kong
We recognize the critical importance of local expertise in debt recovery. Leveraging our extensive network and understanding of Hong Kong as well as other major cities in China, we ensure your claims are handled efficiently and effectively. Combined with our user-friendly platform, we provide a seamless experience to assist you in recovering your debts promptly, while keeping you informed and in control throughout the entire process.
Collecting debts from customers abroad can sometimes feel hopeless
When a debtor abroad does not pay, creditors have very few tools at their disposal to get the customer to pay. In China, you speak a different language, the legal system is structured differently from what you are used to, and the business culture differs from that in your home country. In short, as a creditor, it is impossible to know how to get a debtor in China to pay an overdue invoice.
Oddcoll has solved this problem for international companies by creating a debt collection platform with collection agencies and law firms around the world. When you have a problem with non-paying customers in other countries, you can quickly start a debt collection case on our platform, and our local debt collection partner will immediately initiate appropriate collection action right where the debtor is located.
They are specialists in the local laws and in the debt collection procedure of the country where your debtor is based. This means you can get started with debt collection in China through a Chinese debt collection agency in minutes. This approach ensures that you are given the greatest opportunity to get paid by your Chinese customer.
Our Chinese Debt Collector
We are proud and pleased to introduce our Chinese debt collection agency, Qingdao Inter-Credit Services Pte., Ltd., which will be working on your case.
Can you briefly describe your company and your debt collection services?
Inter-Credit Risk Management Ltd. was established on November 17, 1997, and is headquartered in Qingdao City. It is one of the first batches of companies that obtained the ISO9001 Quality Management System Certification and ISO27001 Information Security System Certification in China. With the principle of managing clients’ assets like managing our own, Inter-Credit has always been customer-oriented. We consistently offer well-rounded, high-quality, and professional services for our clients based on our powerful backup support, which includes a nationwide network, well-trained specialists, and the support of advanced technology.
Inter-Credit’s debt collection abilities are unparalleled. It has established a national network comprising two operating centers, 43 branches, more than 60 representative offices, a presence in over 650 Chinese cities, and more than 6,000 employees. As a member of FCIB, BIIA, FENCA, ACA, and TCM Group, Inter-Credit also has over 170 global partners, covering more than 140 countries and regions.
Inter-Credit is committed to providing clients in finance, insurance, investment, and international trade industries with professional risk management services that cover comprehensive aspects of financial and business risk management, including outsourcing services such as credit card and consumer credit arrears collection, overseas and domestic overdue account management, business credit investigation, certification services, post-loan management, and financial technology support. We are the strategic/core partner of many banks and large internet financial companies. We offer amicable and pre-legal collection services on a No Collection-No Fee basis.
We pay attention to your specific requirements, value your feedback, and help you reduce the rate of bad debts. Our goal is to protect your company from financial risks and ensure long-term and stable profitability. With a global coverage of 98%, we can provide you with professional, efficient, and localized management services for the overdue accounts wherever your debtor is located.
Can you give us an overview of the collection process in China?
Case Consultation
Provide clients with free consultation. Our professional Client Service communicates one-on-one with clients regarding the case information on the Application Form.
Review and Assessment
Review the case-related materials and debtor’s information provided by clients, and then evaluate the possibility of recovery.
Entrustment and Registration
After the assessment, both parties sign the Debt Collection Assignment and Power of Attorney.
Investigation and Collection
Distribute the cases to the local team in the location where the debtor is located to conduct an investigation and collection.
Communication and Feedback
Regularly send the Case Update Report to clients, which enables clients to have a clear picture of the whole progress of the case. Any special collection action is done only with the consent of clients in advance.
Recovery of Debt
Debtors are instructed to repay directly to the clients’ designated bank account. The client only needs to pay us the commission after confirming the receipt of payment.
Case Closure
If the debtor pays off the debt or the case is considered unrecoverable, both parties agree to closure, then the closing notice will be sent.
What actions do you take during the amicable stage of debt collection?
We use phone calls, letters, emails, Site Visits, etc, for collection. For non-contactable cases, we will submit them to our Information Restoration Center for further search, and the support centers will follow up and monitor the whole process.
What is your degree of success in the amicable stage (of all successful cases)?
Depending on the type of debt and industry, the successful recovery rate varies. The collection success rate for publishing, international trade, SAAS, international student debt, etc, can be as high as 80% or more. Collection cases involving individual information, such as overseas first-aid, have a successful collection rate of about 30%.
How does it work in China when you need to take legal action and proceed with legal proceedings?
If the amicable & pre-legal collection process is not successful, we will transfer the cases’ materials to our legal team with the consent of the client. Our legal team needs to review all reference materials, provide feasible opinions, evaluate the results based on the debtor’s actual repayment ability, and provide the client with a list of litigation costs and estimated duration of action for their reference.
If you are taking legal actions in a case and you win in court, can the costs for legal actions that the client has paid for be added to the debt?
If clients sue a debtor in China, most of the related litigation fees and case filing fees need to be paid by the client in advance, and the litigation fees and attorney fees would not be added to the debt.
Information about debt collection in China
Amicable recovery of debts in China
The debt collection process in China starts with a debt collector attempting to recover a debt out of court. That is, without having to take any legal action or start any legal proceedings. This is always the most advantageous approach, as court proceedings can be costly, time-cinsuming, and the outcome is not always certain. What a debt collection agency does is to assess the financial situation of the debtor.
Based on this assessment, recovery measures such as the sending of collection orders and demand letters are carried out. Contact is also made by calling debtors, contacting them electronically, and sometimes even physically visiting debtors. Our Chinese debt collection agency is highly effective at this stage of the debt collection process because of its experience in negotiating and putting pressure on the debtor.
To proceed legally in China with a debt collection case
In the event of non-payment, it may be in some cases necessary to take your case for debt collection in China to court to start legal procedures. Of course, at this stage, you need the help of Chinese debt collectors, as a foreign creditors are often not familiar with foreign laws. In China, there is a strong tradition of resolving commercial disputes out of court. This is also reflected in the court proceedings, where parties are encouraged early in the civil proceedings to resolve the disputes through mediation conducted by a court-appointed mediator. The court system in China is structured as follows:
- Local people’s court
- Courts of Special Jurisdiction
- Supreme People’s Court (SPC)
The Supreme Court is primarily responsible for interpreting laws and setting legal precedents. Special courts are courts set up to hear cases in a particular field (e.g., special courts for intellectual property, internet courts, financial courts, and maritime courts). But it is mainly in local courts that civil cases are heard. The local courts are, in turn divided according to:
- High people’s courts
- Intermediate people’s court
- Primary people’s courts
Local courts hear cases in a given geographical area that are not of such a legal nature that they should be heard by a specialised court. Judicial collection cases are heard, in the first instance, by courts at different levels. This is determined by the type of case and the size of the claim.
Contact us if you need help collecting a debt in China!