The era of malicious debt evasion will eventually become a thing of the past

As the risks of online lending are gradually cleared, the online lending industry has entered a period of adjustment and transformation. How to protect the interests of lenders is the most important thing for all platforms that want to transform. According to many people in the industry, in the critical stage of industry transformation, it has become a top priority to protect the rights and interests of lenders and resolve overdue corporate loans and premeditated debt evasion.

Malicious debt evasion directly affects the interests of the lender

What is debt evasion? Debt evasion is a civil breach of contract. Not all debts that are not repaid are debt evasion. It emphasizes the subjective intentionality of the debtor. That is to say, failure to perform debts with the ability to perform is an evasion of debt. debt. The so-called "ability to perform" means that there is a source of income, or that although there is no source of income, there are assets available to fulfill the debt, and the debt can be partially or fully fulfilled. From the subjective point of view of the debtor, there are two forms of debt evasion: one is actively evading debt performance, and the other is passive inaction. The former type is usually called "malicious debt evasion".

It is understood that many of the P2P online lending platforms that have experienced explosive booms in the past two years are due to non-compliance of platform business, and many are due to borrowers maliciously evading debts. In addition, after some platforms ran away, many financiers who borrowed money from the platforms refused to repay due loans on time in an attempt to escape their repayment obligations. These malicious debt evasion behaviors triggered a series of chain reactions and intensified the outbreak of platform risks.

There is no doubt that malicious debt evasion not only affects the credibility of the industry and the legitimate rights and interests of lenders, but also causes damage to the social credit system, seriously affects social harmony and stability, and causes great harm to the financial market.

At present, even if powerful online lending platforms are actively transforming their plans, they cannot be passive and slack in the management of their original platform’s existing business. They must still actively do a good job in post-loan management, and still have to deal with overdue borrowers. Necessary collection and other work must also prevent large-scale debt evasion and ensure that the interests of lenders are not damaged.

Multi-party joint punishment, the production space for debt evasion is getting smaller and smaller

On December 18, 2019, the Beijing Internet Finance Industry Association held the December monthly president’s working meeting. He emphasized that one of the priorities of future work is to implement the white paper on debt evasion in the online lending industry. By analyzing the current situation of debt evasion by institutional borrowers, we trace the root cause and explore feasible solutions for online loan borrowers to evade debt.

In fact, with the proliferation of debt evasion, in recent years, the state has attached great importance to the governance of debt evasion, and the means of punishing and cracking down on dishonest people have become more and more diverse. The intensity of punishment has also been gradually increased. These include including the central bank credit investigation and the credit investigation of hundreds of banks; multiple channels, high frequency, real-name exposure; restrictions on loans, frozen accounts, and housing auctions; restrictions on going abroad, buying houses, stock speculation, and high consumption behaviors; restrictions on taking airplanes, high-speed rails, and high-speed trains, etc.

For example, in September last year, the National Mutual Finance Rectification Office and the Online Lending Rectification Office issued the "Notice on Strengthening the Construction of the Credit Reference System in the P2P Online Lending Field." The "Notice" proposes to increase the punishment of dishonest people in the online lending field. This includes encouraging banking financial institutions, insurance institutions, etc. to follow risk pricing principles to increase loan interest rates and property insurance rates for dishonest people in the P2P online lending field, or restrict the provision of loans, insurance and other services to them. Encourage all localities to establish cross-department joint disciplinary mechanisms in accordance with the law, increase the intensity of punishment for dishonesty, and form a unified governance structure featuring coordinated linkage between government departments, self-discipline management of industry organizations, and extensive supervision by public opinion.

As soon as the "Notice" came out, local governments and online loan platforms took action one after another to start a "battle" against malicious debt evasion. In the past three months, we have achieved remarkable results in combating malicious debt evasion. As of now, the Beijing Mutual Finance Association has received lists of debt evaders submitted by 36 platforms, involving more than 200,000 malicious debt evaders.

In an environment where supervision actively guides and practitioners actively participate, as the methods and means of combating debt evasion are constantly updated and improved, the cost of "debt evasion" will become higher and higher. Space is bound to get smaller and smaller.

Undoubtedly, with the pain of rectification in the online lending industry, the crackdown on debt evasion and the punishment of dishonesty are also accelerating. Online lending platforms, regulatory agencies, and industry associations have collaborated to achieve significant phased results. Times are already hard.

"With strict supervision and the joint efforts of various industry institutions, the 'cancer' of malicious debt evasion will eventually become a thing of the past, and the formation of a credit reporting system covering the whole society will also be accelerated." China Li Dongrong, chairman of the Credit Construction Professional Committee of the Internet Finance Association, said.