As far as the current situation is concerned, although the state has not explicitly liberalized the registration of debt collection agencies. However, in combination with practice, domestic financial institutions have commissioned external professional institutions relatively early, and anyone and any institution can engage in third-party debt collection business, which leads to a mixed bag of fish and dragons in the whole industry, and it is also easy to cause vicious incidents in the process of debt collection, which ultimately has a negative impact on the overall work efficiency, and the industry is therefore chaotic and the market order is greatly affected. The state has issued many normative documents prohibiting the establishment of debt collection companies. Although it is not allowed to set up a debt collection company, some enterprises have tried to collect customer service and business account management as their business scope, successfully completed the registration and entered the debt collection industry. Most of them are anonymous companies such as financial services and asset management. This perfectly circumvents the law prohibiting the establishment of debt collection companies, and it is difficult for the state to clarify the actual business contents of enterprises one by one.
The third-party collection industry of private lending develops the collection business anonymously, and the public power often knows nothing about it. In addition to setting up companies, loose non-corporate groups have been set up to collect debts. Public power is even more ignorant and difficult to manage. Due to the lack of standardized qualification certification in the industry access system, there are many illegal private lending third-party debt collection agencies in China's market. The phenomenon of usury is widespread in most private loans, and some dunning activities are related to black activities.
Some institutions with this nature use illegal means to collect debts in the name of debt collection, and debtors and their relatives face serious personal safety hazards. Under the influence of one-sided reports of news media and traditional ideas, people often think that debt collection industry is equivalent to violence and underworld organizations, which leads to many standardized and legal debt collection agencies being discriminated against by the public. Debt collection agencies have not yet defined their legal and market status, which makes it difficult for creditors to effectively implement their legal rights and debtors to fully perform their obligations, resulting in debt collection agencies being unable to carry out relevant work normally.
Limitations of existing laws and regulations The existing legislation and regulations are too concentrated in financial institutions such as banks. The laws used to regulate debt collection in China are mostly scattered in criminal law, contract law and civil law. When the collection behavior is improper, the contract law of creditor's rights and debts is often taken as the starting point, and the liability for breach of contract is claimed by applying for arbitration or bringing a lawsuit to the court. According to the Tort Liability Law, General Principles of Civil Law and other relevant provisions, the court gives rights relief to the infringed whose property and personal safety have been damaged. If the tort of the collector is minor, it will form a civil tort, and if the circumstances are serious, it will bear certain criminal responsibility according to the provisions of the criminal law. In terms of applicable laws, judicial organs including Beijing have issued relevant judicial interpretations to severely punish illegal and criminal acts in the process of debt collection.
According to the relevant laws and regulations on "outsourcing of collection" of commercial banks, the Notice of CBRC on Further Regulating Credit Card Business in 2009 only proposed that banks should conduct due diligence when entrusting a third-party collection agency to collect money, and banks should bear the legal consequences of infringement damage caused by collection, which is not comprehensive and specific enough. Even in the relatively standardized field of commercial banks' collection outsourcing, the existing laws still fail to regulate the collection behavior in detail, and many laws and regulations need to work together.