Why don't online loans directly sue but collect?

Why do online loans only accept complaints? That's why.

With the development of the Internet industry, there are more and more online lending platforms. For friends who are in urgent need of funds, this is the fastest way to obtain funds. However, some users who use online loans have found out why online loans only collect money and do not sue. So today we will discuss this issue together!

Why do online loans only accept complaints?

1. prosecution time is too long: because a large amount of materials need to be provided to the court to prosecute the debtor, it may take about half a year from preparing the materials to winning the case, and the cycle is too long. If the amount owed is not particularly large, it is generally impossible to sue.

2. The cost of prosecution is too high: professional lawyers must be prepared when prosecuting. If the debt is not much, the price of hiring a lawyer may be higher than the debt, which is more suitable for prosecution and collection.

3. Lower collection cost: compared with prosecution, the collection cost will be very low, not only by telephone, SMS, sending overdue notice, the above collection methods, but also much lower than prosecution.

4. The overdue amount of online loans is small: Generally speaking, the overdue amount of online loans is not large, and they are all small loans of several thousand yuan. It is very rare that the overdue amount can reach tens of thousands.

5. Good collection effect: Due to the short collection cycle, it is easy for the debtor to repay within the specified time. Generally speaking, users who use small loans can be caused by unstable capital income, so as long as they have money, they will basically repay.

The above content is a detailed answer to why online loans only accept and not prosecute. I believe everyone has their own understanding after reading it. I hope this answer can help you solve the problems in your life.

Why don't online loans dare to sue?

With the rising of house prices and prices, as well as people's comparison psychology, many people have overdrawn their consumption under the guidance of financial lending. By September of 2002 1 year, there were 900 million credit cards in China, exceeding1100 million people's consumption and borrowing. However, many people have formed a "revolving loan" in the process of overdraft consumption, and they have to find ways to borrow money if they can't turn around.

For friends and relatives, you don't want to talk about it, so you will see the news of online loans. "Unsecured" and "low interest rate" have become the reasons to induce people to borrow. However, in the subsequent repayment, many people maliciously refused to repay and stopped in the repayment process. However, the online lending platform did not dare to sue, but illegally collected it.

According to media reports, more than 4 million borrowers across the country have been collected in different illegal ways, such as address book exposure, abuse of telephone collection, violent collection, routine loan, impersonating relevant personnel, etc. This also makes many people simply don't want to repay the loan. In fact, why don't borrowers sue for repayment? There are two main points.

First, the platform does not dare to prosecute violations, because the usual violations are not prosecuted before the law, because the law does not support this operation, but the amount of the borrower is mostly the lender, so it is necessary to repay the principal. Although the platform does not dare to go to court to sue, the borrower also needs to voluntarily repay the principal, so there is no need to worry about any collection by the platform.

Second, in a sense, the platform is also unwilling to go through legal procedures, because the payment is slow, and the first trial is half a year and the second trial is half a year. Even so, the borrower has no funds to repay, which leads to a long delay. For example, Beijing Clockwise Finance defaulted on employees' wages, and now it has not given a penny for two years, so many platforms are willing to use the collection platform.

In addition, some borrowers really want to repay, but when they encounter this "trap", they don't want to repay at all. Because there are more and more college students before, repayment is uncertain for borrowers, and interest is compound interest. At ordinary times, everyone understands that "it is natural to pay back debts", but in the face of this situation, everyone hopes to pay off debts through justice.

In addition, most borrowers can directly repay the lender's principal, and it doesn't matter if it is slightly extended. After all, debt can be paid off. However, it is difficult for many lenders to get the payment when facing the repayment of online loan platform. At this time, as long as the principal is given to the lender, the lender can accept it and reduce the decline of their credit.

Why is the online loan violently collected but not prosecuted?

For users who apply for online loans, the most annoying thing is to encounter online loan platform collection. Collection means is one of the methods often used by online lending platforms, and they prefer to use violent collection instead of suing most online lending platforms. Then, why is the online loan violent collection not prosecuted?

1, prosecution is too time-consuming and costly. The prosecution time is too long, and most lending institutions are reluctant to take the means of prosecution. Prosecution is time-consuming and laborious. It not only takes a long time to prepare the prosecution materials, but also requires patience in litigation. Moreover, the cost of prosecution is too high. In order to reduce losses and collect more interest, direct violent collection is the best choice.

2. Slow payment after prosecution. The cost of overdue prosecution of online loans is high and the payment speed is too slow. In contrast, the cost of violent collection is low and the effect of recovering arrears is good. At present, most online lending platforms mainly bombard borrowers by SMS or telephone, or explode address books to force repayment.

3. The online lending platform chooses violent collection but is unwilling to sue. Mainly because prosecution is too time-consuming and expensive. Even if the borrower is sued, the court will only decide to repay the principal and legitimate interest. Therefore, violent collection can bring more benefits, and it is not worth suing the borrower.

The above is an introduction to why online loans are violently collected but not prosecuted. Regardless of whether the online lending platform sues or not, users who apply for online lending remember to repay on time and on schedule.