In recent years, there has been a frequent occurrence of mainland entrepreneurs or individuals seeking to recover debts through various means. With changes in the economic environment, the difficulty of debt collection has increased, leading many business owners and individuals to seek effective debt collection solutions, and consequently participating in “debt collection training courses.” According to insiders, the students attending these debt collection training courses are all seasoned bosses who have been involved in the market for many years.
In a report by “Times Weekly” on November 30th, it was mentioned that in the past, phone calls, text messages, letters, and lawsuits were the main methods of debt collection, but against the backdrop of increasing economic pressure, the effectiveness of these methods has gradually weakened.
Shanghai construction company owner Chen Lixiong not only failed to make any profit on a particular project but also ended up owing nearly 3 million yuan in debt. Faced with the situation of delayed payment by the first party after the completion of the construction project, he attempted to resolve it by inviting them for a meal but was unsuccessful, and the debt issue remained unresolved. This ineffective “dinner debt collection” reflects the limitations of traditional methods.
In order to seek more effective solutions, some creditors have turned to participate in “debt collection training courses.” These courses claim to help creditors improve their success rate in debt collection by using theories and practical methods such as psychology and game theory. However, many students have doubts about the effectiveness of these courses.
Chongqing entrepreneur Lu Shengcai stated that these theories are out of touch with reality and are not easy to implement in practice. For example, the course suggests “stopping work” when the other party’s funding chain breaks, but in actual projects, this may lead to a breakdown in cooperation, affecting future business.
Although the courses promise a debt collection success rate as high as 80%, the students generally believe that the methods provided are mostly conventional routines and lack innovation.
Chen Lixiong mentioned that the training fees for debt collection courses range from five to ten thousand Chinese yuan, the course is divided into three days, with the first day teaching the basics, the second day teaching methods, and the third day focusing on real-life cases. However, the service fees for debt collection are calculated based on the total amount owed and the difficulty of collection, approximately ranging from 7% to 30% of the total collection amount. This poses a risk for creditors when making choices.
“Among the students in the class, there are no ordinary corporate employees, they are all seasoned bosses who have been in the market for many years, with their ages ranging from 40 to 50 years old.”
These bosses attended the classes for two days, confused and lost. They did not know that slowly they would transition from debt collectors to becoming “manufacturers” in another credit system, providing information and data to that blurry external force.
Chen Lixiong chose to seek a lawyer as he found debt collection unreliable. On the other hand, he continued to work, striving to save himself. Therefore, he had to pick up his old intermediary business from years ago, selling accessories, rare earths, plastic raw materials, and new energy vehicles.
In recent years, the debt collection industry has gradually become legalized, but there are still gray operations. Some debt collection companies use online public opinion pressure, personal relationships, and legal suits to coerce debtors into payment.
Wenzhou-based debt collector Xu Hua emphasizes that their debt collection methods are legal and compliant, and they use the name of the “World Credit Organization” to intimidate indebted companies. However, the actual credibility of such organizations is questionable.
The debt collection industry also faces the phenomenon of “eating from both ends,” for example, charging high commissions to creditors while negotiating with debtors and charging fees under the condition of delaying repayment. These practices lead to a lack of trust from creditors towards debt collection companies.
For many creditors, delayed repayments have put them in financial distress. During the process of debt collection, they have to weigh between legality and practical effectiveness to find the most suitable solution for themselves. Some have to rely on additional business or personal relationships to save themselves.
To recover the owed debts, Lu Shengcai had to sign an agency contract with a debt collection company, even though he knew the success rate was not high, he still hoped to “take a chance.”
Some creditors face psychological pressure and family conflicts when pursuing owed debts. They not only endure economic losses but also deal with fractured social relationships.
The complexity of debt collection reflects the challenges of the current economic environment. While the debt collection industry offers various means and new methods, their effectiveness varies, accompanied by many controversies.
Lawyer Tian Feng, familiar with the field of economic disputes, mentioned that there are regional differences in debt collection methods. In some places, the methods are relatively blunt and straightforward, but they make good use of the Internet and social media—creating a barrage of negative news to induce pressure.