If there are illegal detention, insult and slander, violent collection, selling off customers' property, collecting customers' cash, forcibly entering the house, and spreading debtor information without authorization, it is illegal. But if the collection company has been legally registered, it is legal.
Legal basis: Article 29 of the Regulations on Non-deposit Loan Organizations (Draft for Comment) stipulates that non-deposit loan organizations shall provide repayment reminder services to overdue borrowers in a legal and appropriate way.
Non-deposit lending organizations and outsourcing institutions shall not have the following acts when collecting debts:
(1) using or threatening to use violence or other illegal acts to damage the body, reputation or property of others;
(2) Insulting, slandering or otherwise interfering with the normal work and life of others;
(3) forcing the borrower to pay off debts by misleading, cheating, false statements and other means;
(4) Publicizing the list of borrowers who refuse to pay off their debts to the public, except as otherwise provided by laws and administrative regulations;
(five) to collect money from people other than the debtor and the guarantor;
(six) other illegal, improper or improper means to collect debts.