Debt Collection in China

We are proud and pleased to introduce our Chinese debt collection agency, Qingdao Inter-Credit Services Pte., Ltd. who 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 headquartered in Qingdao city. It’s one of the first batch of companies that obtained the ISO9001 Quality Management System Certification and ISO27001 Information Security System Certification in China.

With the value of Manage clients’ assets like managing our own, Inter-Credit has always been customer-oriented. We constantly offer well-rounded, high-quality and professional services for our clients based on our powerful backup supports which contain 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 with two operating centers, 43 branches, more than 60 representative offices, a presence in over 650 Chinese cities, and more than 6,000 employees. And as a member of FCIB, BIIA, FENCA, ACA, and TCM Group, Inter-Credit also has more than 170 partners in the world 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 which 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 & pre-legal collection service at No Collection-No Fee basis. We pay attention to your different demands, value your feedback and help you reduce the ratio of bad debts. Our goal is to protect your company from financial risks, and achieve 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 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 investigation and collection.

Communication and Feedback

Regularly send 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. Client only need 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 for 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 it 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 need to review all reference materials, provide feasible opinions and evaluate the results based on the debtor’s actual repayment ability, provide 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 debtor in China, most of the related litigation fees and case filing fees need to be paid by client in advance, and the litigation fees and attorney fees would not be added to the debt.

Amicable recovery of debts in China.

The debt collection process in China starts with a debt collector trying to get paid for 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 as court proceedings can be expensive, take a long time, 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, 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 necessary in some cases 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 creditor is not familiar with foreign laws.

In China there is a tradition of trying to resolve commercial disputes out of court. This is also reflected in the court process where parties are encouraged early in the civil process to resolve the dispute through mediation by a mediator appointed by the court.

The court system in China is structured as follows:

• Local people’s courts
• 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 courts
– 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 of these levels. This is determined by the type of case and the size of the claim.