Cross-border legal debt collection can end up being a messy, time-consuming and costly undertaking, especially if you are dealing with a foreign legal system whose language and complexity you are finding difficult to understand.
Collecting a debt in China can seem impossible. Language and cultural barriers, foreign laws and customs, and sheer distance all impose serious challenges.
You have debtors in China, maybe thousands miles away from you and you have no good solutions how to handle such challenges? Debtors in China might think that you can’t do anything to collect the debt, because they are in another country.
You might think that it is too expensive and complicated to pursue recovery of debt (amicable debt collection) in China? You also don’t know any debt collection agency or lawyer in China or you don’t know the legal system in China?
If nothing else worked, you might decide to pursue a debt collection in front of a court in China. But you don’t know any lawyer that has experience in debt recovery in China?
This is where Tommy China Business Consulting comes in.
In cases where you — or your collection representative — have exhausted every possible means of amicable debt resolution, we can take legal action to make your debtor meet its obligations.
After first consulting with you, we initiate a prudent and cost-effective course of legal action by drawing upon the local points of contact and the specialized local and transnational knowledge that our network allows.
As with standard debt collection suits, half the battle is won by having intimate knowledge of the local court system and ready proficiency in the local debt collection laws. Our local teams of seasoned court litigators not only have this knowledge and proficiency; they have at their disposal the requisite forensic and advocacy skills to bring your case to successful conclusion.
Debt recovery is simpler when you use a collection agency fluent in the laws and customs of the country where the debtor resides. Tommy China Business Consulting offers on-the-ground representatives in China who understand the debt collection practices that work to support full recovery of your funds.
Since 1991, Tommy China Business Consulting has served as a trustworthy, nationally licensed debt collection agency, helping businesses collect unpaid accounts in China. With knowledge of collecting debts in a wide range of different industries, our experienced team of lawyer collects your debts quickly and effectively so you can receive the payments you’re owed.
working with Tommy China Business Consulting provides you access to a network of nationally licensed attorney debt collectors. Our in-depth understanding of local laws, customs and cultures guarantees the best possible debt mediation results.
Comprehensive, People-First Help
At Tommy China Business Consulting, we put people first, doing everything we can to get your money back while still preserving a good relationship with your customer. Our strategic public relations efforts are fair, but firm-ensuring your reputation is our top priority!
We combine a people-oriented approach with the latest tech-driven solutions to drive results and provide better contact management. This comprehensive method gets the results you need while preserving customer relationships.
In addition, our network of debt collectors, attorneys, suppliers and vendors are cherished relationships that allows us to get the job done. We value each of these relationships, no matter how small or large.
Contact us today and learn what we can do for your business.
1. Who can help you to collect your debts legally in China
In China, only licensed law firms and licensed lawyers can help you collect your debts from China.
In 1995, National Public Security Bureau and State Administration for Industry and Commerce issued together one regulation prohibiting organizations and individuals to setup Debt Collection Companies. The theory base of this regulation is, debt collection and recovery is a sort of law service, and only licensed Chinese lawyers are allowed to offer clients with Chinese law services. And in 2000, State Economic and Trade Commission (under National Peoples Congress), National Public Security Bureau and State Administration for Industry and Commerce issued together another notice named “fighting against illegal debt collection companies severely”. In fact, if according to the 1995 regulation, all debt collection companies in China are illegal.
Before this regulation of 1995 was issued, individuals and organizations may setup debt collection companies in China, and help clients with their debt recovery. However, some of their debt collection methods were not professional, and even illegal. One typical method is, send several persons or hire and send around 10 unemployed persons to the house or office-site of debtor, and sitting there to have a party, and they will not leave unless the debtor agree to manage to pay the debt. And some of their debt recovery methods are more violent, like threat, deceiving, extortion and even kidnapping.
2. How to recover your debt legally?
The standard operation procedure of debt collection via legal actions shall be:
a. Study the materials from debtee, and when in need the lawyer will do pre-investigations on the situation of the debtor, like whether and where it’s registered, whether one off-shore company, and registered capital, address and so on of the debtor.
b. Decide the nature of the case, if the case is a civil case (dispute) over nature, then come to step c. If the case is a criminal case over nature, then organize up the documents and help debtee to file one criminal case in a related police bureau in China.
c. Lawyer’s letters(claim before legal actions and/or final claim before legal action) to the debtor, and if the debtor opens to it, carry on further negotiations with him so as to reach one out-of-court agreement, requesting him to pay the debt.
d. In case the letter does not work, or negotiations do not lead to one out-of-court agreement, the lawyer will file one litigation or arbitration case on behalf of debtee.
3.Types of debts
a. Debt caused by Contracts. This is the most-often-seen type of debt. For example, when importer and exporter signed one sales/purchase agreement, the importer makes the payment fully, but the exporter does not deliver the cargos, or delivered defective cargos, when the importer will be become debtee and exporter will become debtor. Or on the contrary, the exporter delivered the cargos, but the importer does not make the payment, when the exporter will become debtor and importer will become the debtee.
b. Debt caused by Unjust Enrichment. For example, A and B is negotiating a deal of sales/purchase via email and is coming to a deal, A is the buyer and B is the seller, a hacker hacked into the business email of B, or use a very-similar email to B’s email, and sent the bank account of C to A, requesting A to pay the money of deal between A and B to C. A accepts the instruction, and pays the money to C, (and later may find that the email was not from B at all, but a very-similar email) . In this situation, A may claim the money against C over civil law principle of Unjust Enrichment.
c. Debt caused by Management of Affairs without Mandate.
d. Debt caused by Infringement of legal rights
how to answer a lawsuit for debt collection in texas, I think this is an informative post and it is very useful and knowledgeable. therefore, I would like to thank you for the efforts you have made in writing this article.
ReplyDelete