Debt collection companies violate the law, and the State Administration for Industry and Commerce explicitly requires industrial and commercial administrations at all levels to immediately stop the registration of "debt collection companies" and similar enterprises that have been applied by public, procuratorial, legal and administrative organs; For those who have registered, the administrative authorities for industry and commerce at all levels shall notify them to immediately stop the "debt collection" business. The three departments of the State Council once again banned all kinds of debt collection companies, and prohibited any unit or individual from setting up any form of debt collection companies.
Debt collection companies collect debts according to the power of attorney, which has no legal basis and lacks the authority and administrative coercive power given by law. Debt collection companies use threats, cajoling, extortion and other improper means. Forcibly collect debts from debtors, even kidnap hostages, engage in violence and other illegal and criminal activities that endanger personal safety, in order to collect high remuneration. The "debt collection agreement" signed by creditors and debt collection companies is illegal and not protected by law.
Legal basis:
Article 293rd of the Criminal Law of People's Republic of China (PRC) is under any of the following circumstances. If the circumstances are serious, they shall be sentenced to fixed-term imprisonment of not more than three years, criminal detention or public surveillance, and shall also or only be fined:
(1) Using violence or coercion;
(2) restricting the personal freedom of others or intruding into others' houses;
(3) intimidating, stalking or harassing others
Derivative problem:
What is the process of debt collection and prosecution?
The process of debt collection and prosecution is as follows: 1. Creditors bring a lawsuit to the people's court with the IOUs, IOUs or relevant written documents of both parties, and submit a complaint; 2. Creditors can apply for property preservation before prosecution, and pay off with the preserved property after winning the case; 3. If the creditor wins the case, the debtor shall perform the judgment; 4. If the debtor fails to perform the judgment, the creditor may apply to the court for enforcement with the effective judgment document.