New breed of debt
collectors shun
violence
By Cao Li (China
Daily)
Updated: 2006-09-10
14:39
Debt collection was
once filled with
threats of violence
- but no longer.
It is now seen as
requiring wisdom and
manners.
"We teach our
students the process
of debt collection
and the laws
concerning legal
procedure," said an
official with China
Employment Training
Technique
Instruction Centre
under the Ministry
of Labour and Social
Security. Nearly 200
students around the
country have
completed training
courses for
professional debt
collection conducted
jointly by the
centre and the
Beijing Huicheng
Technique Training
Centre. One hundred
of those have
already been awarded
a license to work in
the industry, six of
them from Shanghai.
The official, who
preferred to be
anonymous,said the
right process of
debt inquiry was by
phone call, by mail,
by visiting and then
by legal procedures.
"Our class tells
people what
techniques, manners
and laws to apply to
persuade a debtor to
pay. It is not about
threatening the
debtors with the
law, but educate
them to what they
might face if they
refuse."
He said a debt
collector from
Jinhua, Zhejiang
Province, has
increased his
success rate
significantly since
taking the training.
"The student
works for a company
that collects debt
for a local
hospital, which
often sees patients
leave without
paying.
"He told us he
succeeded in half of
the collections
before the training
and the percentage
has risen to 80 per
cent now," said the
official.
"China is
experiencing fast
economic development
and debts between
companies and
individuals are seen
everywhere."
The country
banned the
registration of debt
collection companies
in 2000 because of
increasing cases of
violence. But
companies operating
such business still
exist.
Statistics show
Shanghai has more
than 100 debt
collection agencies,
which collect debts
amounting to
hundreds of million
of yuan every year.
A company formed by
legal experts in
China and the United
States to collect
debts on behalf of
Chinese companies in
the United States
was launched at the
start of this month.
According to
National Business
Daily, many of the
collection
companies, which
charge at least 10
per cent of the debt
figure for services,
are kept very busy.
Liu Guibin, one
of the six
professional debt
collectors in
Shanghai, told
National Business
Daily that the
income of a debt
collector is at
least 80,000
yuan(US$9,860) per
year.
"We launched the
training programme
in April in the
Great Hall of the
People in Beijing,"
Zhao, a woman with
Huicheng Technique
Training Centre told
China Daily Shanghai
& Delta.
"We have received
lots of applications
from as far as
Xinjiang, Hong Kong
and Taiwan.
"Most of them
work for law firms,
finance or sales
management
departments of big
companies and credit
management
companies.
"We even see
university students,
though few in
number, who were
hoping the
certificate could
improve their
chances in job
hunting."
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