Index
1. We can do a better job than your in-house collection team, why?
2. More information on why we can collect effectively for foreign banks
3. Further action of litigation for some cases are necessary, why?
4. Whether file any criminal case in China against opponents or not
5. Background information - debt collection in present mainland China
Dear Madam and Sir,
Good day.
In past 1.5 years (2019-2021), our team had helped AAA Bank to collected about 10 million CNY from your Chinese delinquent customers. And we feel self-confident enough to say that we are your best choice in mainland China on collection/recovery job, because, in short, we can do something that other collection agencies in China or your country, and even most other Chinese lawyers cannot do. In details --
1. We can do a better job than your in-house collection team, why?
1.1. Because we can do a better tracing job. We know in your team’s hand, you only have passport copy and some phone numbers of your country and Chinese domestic, and some emails as well, on your archive record. But if the customers chosen or been forced to be delinquent, they will just hide, and your existing address, phone numbers and emails will not work anymore very likely. Of course, if they works, you can keep these accounts, and we will help over other accounts that you cannot work out. We can trace legally their Chinese citizen ID number, home address in China, their companies in China and more. Only we can do these jobs effectively and legally in China, even Chinese lawyers in other provinces cannot do it in mass.
1.2. Because we are the right and legal collectors in China, who can give them due pressures that work. If strictly over laws, only Chinese lawyers are allowed to do debt collection job.
2. More information on why we can collect effectively for foreign banks
2.1. Over nature, the collection job in China is the job of lawyer. Our main job is to send delinquent customers various types of lawyer’s letters. To enable this job, in most cases we need to investigate and get their Personal Citizen ID Information (or Hukou Information, “PCII” below) firstly from police’s database, and we may also, in further, verify existing Chinese companies, and even do field visit to their registered home address if allowed by client, so as to trace/find the customer or his/her valid contact information. If amicable collection and letters do not work, we will raise a litigation.
2.2. What is “Personal Citizen ID Information” (Hukou information) and why it’s so important in China?
A. First what is Hukou? I think you can simply understand it as “the citizenship of one citizen registered in one city or county only”. A Chinese citizen only enjoys his (or her, same below) full citizenship right (like the right to buy apartments locally without restrictions, or the right of his kids’ entering local schools without restrictions) in his hometown city or county or town where his Hukou (citizenship registration) is registered, but in other cities, he is only a guest, but cannot enjoy his full citizenship rights (for example, his kids cannot enter local schools like local kids).
B. What is “Personal Citizen ID Information” and “Personal Citizen ID Number”? In P. R. China, all citizen individual must register his personal citizen information in a police station, and China police hence has one database of all citizen in P. R. China. The “registered citizen information” shall include information of the individual including name, one registered permanent residence address, gender, birthday, citizen ID No. which we can investigate and get from police station, and more of the individual. While citizen ID number is the most important information, and every Chinese individual has one sole and different citizen ID No. which has 18 digits, it’s the key to define me is me but not another person over laws. Chinese names are mostly quite simple, with two or three Chinese characters, hence some often-seen names could be used by many guys at same time, for example, we have 1.3 million guys who have a same name of “Liu Bo” in all China (this is the most often-used name in China), but every Liu Bo has his own and special citizen ID Number. We cannot find or trace the delinquent customer unless we have his citizen ID No. and address, in normal situations, while passport information including passport number will not work like this.
C. In further, in China, we have quite several national database, while some of them are public and some could be open to lawyers, and some are only open to police and court, including but not limited to, database of registered companies, real estates, vehicles, families (marriage), court judgements, and court blacklist. We will use these database when possible to trace our client, and as mentioned above, Citizen ID number (instead of passport number) and name is the key to access these database. So with citizen ID number and name, we will be able to find out whether our any of our delinquent client -- has any real estate anywhere? has a car? has or had one or more companies existing under his name (and detailed information of the companies)? has ever been involved in any litigation cases? is on black list of Court on enforcement of court judgement? And so on. Meanwhile, some database are opened to enforcement judge only at present, so we will need the assistance of court.
2.3. To investigate the delinquent customer’s PCII (due diligence) is the first job we need to do (which may take 1-7 days depends on police officer’s efficiency), otherwise we will not be able to carry on 90% of further jobs. For this job of investigating and getting the PCII information of delinquent customers, only we can do it, while lawyers in other provinces including Shanghai and Beijing can not do the job effectively and in mass, as we have one a local governmental regulation here which empowers the lawyers the biggest right to do this job, and lawyers in other provinces do not have such big right yet.
3. Further action of litigation for some cases are necessary, why?
3.1. For some customers, according to our field visit to their offices and/or shops in China for other similar cases, they do have the wealth to repay the loans, but they just refused to contact us, and also refused us to contact them. For some customers, they just denied everything completely, and said they had never gone to Dubai / your country (hence no loan from Bank at all), and in further refused to communicate with us, but their addresses in bank file are same to their addresses of PCII, this is too much we think, as they had blocked all possibilities of amicable collections. For some customers, they just disappeared entirely, we cannot get in contact with them after trying all the methods above, this means all the contact information bank files are fake and not work-able, and even their home address in PCII are old but not updated, either. Finally, some customers are under suspicion that they had organized up against us. For these four types of customers, we think some litigation cases will be needed, otherwise they can be very bad examples to other customers and makes our further collection jobs extremely difficult.
3.2. In China, judiciary collection (collection via litigation cases) is the most-common doing of all Chinese domestic banks for their commercial loans (with higher sums, of hundreds of thousands, or even millions). But for CC loans, amicable collection is more common, because of the sums are always not that big, hence a litigation might be too costly. We will surely have a result via judiciary collection (collection via litigation cases). And China court system is much much more powerful than Chinese lawyers.
4. Whether file any criminal case in China against opponents or not
In normal situations, criminal procedure is not recommended in China, unless it is a real criminal case, for example, the opponent’s passport to you is fake. Except for this, throwing opponent into jail might not help at all. If opponent is not jail, at least he can make money to refund the loan, if he is in jail, then no money is no money, he cannot make money while in jail. But we may warn opponents with criminal cases. What is more, in China, if we start a criminal case successfully, that is, we report to police, and police make the official decision to start investigations on crimes because they believe in it that there is a crime, then we will not be able to stop it or withdraw it anymore at all.
5. Background information - debt collection in present mainland China
5.1. If strictly according to Chinese laws, only Chinese lawyers can do debt collection in mainland China. We have three public governmental orders issued by China central government (SAIC and MPS together; State Administration of Industry and Commerce and Ministry of Public Security that is Police) in 1993, 1995 and 2000, ordering no commercial debt collection company was allowed to be registered in mainland China. The reason is, some of the earlier guys in this industry in China before 1993 had collected the debts with illegal methods, like kidnap, illegal restriction on personal freedom, illegal threatening and so on, which led to serious social problems, and quite some criminal cases, and finally led to three orders of central government of PRC. But this job falls into practice scope of Chinese lawyers.
5.2. To our knowing, till now, only Lawyers in Zhejiang province can investigate and get “Personal Citizen ID Information” (Hukou information) of all Chinese citizens from one police station nearest to their law office directly and in mass, but in other provinces (including Beijing and Shanghai who are province level cities), local lawyers are only allowed to get this information one by one and from the very police station where the delinquent customer’s citizen ID information was registered, actually this job hence become impossible, because from passport copies, we cannot know in which city the delinquent customer’s Citizen ID was registered at all, as it only mentioned “Province”, no exact city or lower, so local lawyers in other provinces will not know which police station they should go to at all. We all know our clients of foreign banks mostly only have the passport information of the delinquent customers in hands, hence we can say that only Zhejiang lawyers can carry on effective and legal collection jobs for foreign banks. Meanwhile, we are among the best team who do dect collection cases in China.