Debt Collection Service Referral in China

When your business has customers in the China, making sure you get paid and paid on time can be a difficult and complex task. 

 

Who can help you to collect your debts legally in China? In China, only licensed law firms and licensed lawyers can help you collect your debts from China.

 

In 1995, National Public Security Bureau and State Administration for Industry and Commerce issued together one regulation prohibiting organizations and individuals to setup Debt Collection Companies. The theory base of this regulation is, debt collection and recovery is a sort of law service, and only licensed Chinese lawyers are allowed to offer clients with Chinese law services. And in 2000, State Economic and Trade Commission (under National Peoples Congress), National Public Security Bureau and State Administration for Industry and Commerce issued together another notice named “fighting against illegal debt collection companies severely”. In fact, if according to the 1995 regulation, all debt collection companies in China are illegal.

 

The standard operation procedure of debt collection via legal actions shall be:

  1. Study the materials from debtee, and when in need the lawyer will do pre-investigations on the situation of the debtor, like whether and where it’s registered, whether one off-shore company, and registered capital, address and so on of the debtor.
  2. Decide the nature of the case, if the case is a civil case (dispute) over nature, then come to step c. If the case is a criminal case over nature, then organize up the documents and help debtee to file one criminal case in a related police bureau in China.
  3. Lawyer’s letters (claim before legal actions and/or final claim before legal action) to the debtor, and if the debtor opens to it, carry on further negotiations with him so as to reach the out-of-court agreement, requesting him to pay the debt.
  4. In case the letter does not work, or negotiations do not lead to the out-of-court agreement, the lawyer will file one litigation or arbitration case on behalf of debtee.

A smooth payment process drives sales. Making sure you get paid in a timely manner can prove difficult once you doing business in China. By using a well debt collection service in China you can save time, money and effort, entering new markets with less risk to your business.

 

PBM provides free referral to our valuable clients to licensed attorney office for Debt Collection Service in China. Please email us at info@pbmcanada.com to consult.

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