When considering international debt collections, understanding the issues regarding the language, customs, cultures and laws that govern a country is extremely important. Having a debtor located in China is no exception. Employing a collection agency that understands these specifics is important for successful debt recovery.

Debt collection agencies in China adhere to general recovery actions.  Phone calls and visits are made to the debtor to discuss payment options.  In the past years China has started to build a more sturdy foundation in their debt collection.  Debtor recovery results on are on the rise alongside the efforts put forth.  They maintain more aggressive techniques and are firm with their delivery.  Debt collection has come a long way in China and their efforts are becoming more and more consistent. 

Here are some interesting facts about China’s debt collection practices:

• Almost fifteen years ago The Ministry of Public Security and the State Administration for Industry and Commerce issued a regulation only allowing Chinese law firms to engage in debt recovery.
• China agencies tend to be more inventive in their approach which leads to more debtor awareness.  In order to produce more results some agencies will send out a postcard style demand letter to colleagues or family members of the debtor.  Some agencies have also been known to paste "Poster Size" demand notes at the gate of the debtor's location. 
• Reporting debtors to Credit Bureaus has been increasing in the past years.  This is essential for China because it raises the debtor's awareness of any debts and the impact they have on future credit. 

Cedar Financial offers on-the-ground representatives in China that understand the debt collection practices that work to ensure successful recovery of your money. Contact us today to get started on the road to recovering the money you are owed.

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Common Questions and Answers regarding Debt Collection in China.

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