Huabao sent me three lawyer letters.

Legal analysis: 1. Generally, loan contracts with high penalty interest will have default provisions and penalty interest clauses. If the borrower repays the loan on time, it only needs to repay the principal and interest normally. Once the borrower breaches the contract, the borrower needs to pay the corresponding liquidated damages or penalty interest according to the contract.

Second, file a lawsuit. If the borrower fails to pay back the money, the lending institution may bring a lawsuit to the court. If the borrower loses the case, he will not only have to face the assets auctioned at a low price to repay the debt, but also bear the legal fees and attorney fees (the promise of attorney fees needs to be stipulated in the contract and other conditions need to be met). These extra burdens are the cost of the borrower's default. If the borrower refuses to repay the loan, it may be blacklisted, and it is generally blacklisted, so many things will be restricted.

Third, the operation is affected. Once the borrower defaults, the loan company's collection will inevitably have a great impact on the normal production and operation of the borrower, especially after being caught in a lawsuit, which will greatly affect the cooperation of business partners. This is not only a loss of money, but also a loss of personal reputation and corporate reputation.

Fourth, personal family and life are affected. Once the borrower doesn't pay back the money. Telephone notification, collection notification, door-to-door collection and prosecution will follow. At that time, the lending institution will not only collect the borrower himself, but also contact the borrower's relatives and friends, affecting not only the borrower himself, but also the family, relatives and friends.

Verb (abbreviation of verb) Personal credit information is affected. At present, many lending institutions are connected with the credit information system of the People's Bank of China, and borrowers who do not pay back the money will soon upload it to the credit information system of the central bank, so it will be very difficult to borrow money through other lending institutions. It is necessary to know that the time of bad credit record is five years, and only when the loan is paid off within five years can the bad credit record be eliminated. This means that once the borrower fails to pay back the money, it will be difficult to get a loan or apply for a credit card in the next five years.

Legal basis: People's Republic of China (PRC) Lawyers Law.

Article 28 A lawyer may engage in the following businesses:

(a) to accept the entrustment of natural persons, legal persons or other organizations as legal advisers;

(two) to accept the entrustment of the parties in civil cases and administrative cases, to act as agents and to participate in litigation;

(3) Accepting the entrustment of criminal suspects and defendants in criminal cases or legal aid agencies to act as defenders according to law, accepting the entrustment of private prosecutors in private prosecution cases, victims in public prosecution cases or their close relatives to participate in litigation as agents;

(four) to accept the entrustment and represent the complaints of various litigation cases;

(five) to accept the entrustment and participate in mediation and arbitration activities;

(6) Accepting entrustment to provide non-litigation legal services;

(seven) to answer questions about the law and write litigation documents and other documents related to legal affairs.