Micrograin loans accumulated lending over 3.7 trillion yuan.
Behind the suspicion of “violent collection” of micro and public banks: collection company commission up to 50%, last year, credit impairment losses of 5.5 billion
Harassment, abuse, malicious intimidation ……, online lending violent collection problems still persist.
Recently, a netizen in the black cat complaint posting, said, microzhong bank particle loan overdue, not only collection harassment, but also send threatening text messages. “Although I owe them money, but can not be so insulting ah, when we owe the debt is a beggar’s dinner? Personality is greatly insulted, I hope the person in charge of the particulate loan can pay attention to this problem, hanging Tencent’s banner outside to do bad things.”
There are also netizens because of “economic difficulties” and other reasons, hoping to “stop the negotiation staging”. In this regard, the micro bank told time finance, particle loan is a credit class loan, there is no extension of the operation service. If a customer’s payment is due, it still needs to be returned in time. It’s not a good idea to have a new car, but it’s a good idea to have a new car. If any payment is not returned or has not been returned many times, the installment will be terminated early. “After the debt is overdue, the corresponding debt will be handed over to the post-loan management department to handle.”
Time Finance learned that the third-party collection company profit model is divided into two: the debt is not more than 30 days to call the reminder business, more than 30 days to call the collection, more than half a year overdue collection success or can commission about 50%.
As for the “violent collection” and other issues, as of this writing, Time Finance did not get a reply from the Micro Focus Bank.
“Greatly humiliated”?
In the sina black cat complaint platform, a user complaint, due to the failure of the investment, the parents at home, old and sick toddlers young, epidemic impact, wages are not prosperous, owe particle loan about 120,000. Overdue has been contacting customer service, hoping to stop the interest installment negotiation repayment. The first third party to call, information intimidation, a moment are eighteen phone calls, mobile phone to shutdown.
There are also netizens said, Shenzhen Qianhai Microzhong Bank on October 26, 2020 at around 10:30 am to call a company colleague, posing as a customer to get personal information. “Many times throughout the day to the company colleagues as well as landline phone threatening to let me pay back the money, now has seriously affected my work life.”
The company has been in the process of developing the new product for the past two years, and it is now in the process of developing the new product for the next two years,” he said. 10 for $20, we’ll all get some together and have money to pay it back.”
Niu Niu thought, “I owe them money, but I can’t insult people like that, when we owe debt to beggars? Personality is greatly insulted, I hope the person in charge of the particulate loan can take this issue seriously, hanging Tencent’s banner out there doing bad things, disgrace Ma Huateng!”
Niu Niu told Time Finance: “Customer service called and said they would report the issue, but there doesn’t seem to be much to say.” Currently, the collection agency is no longer harassing her family and friends, but “it’s because I paid off this issue and didn’t harass again,” Nun said.
As of 4 p.m. on Oct. 27, the number of particulate credit complaints reached 5,647, showing that 5,630 have been answered and 4,364 have been completed.
Time Finance also noted that Zhang, a woman in Jiangsu province, was so harassed that she even sued Micro Focus Bank in court, demanding that “Micro Focus Bank make a public apology, eliminate its influence, restore its reputation, and pay 100,000 yuan in compensation for mental damage.”
Reason is that: Weizhong Bank because Zhang has overdue debts are not yet paid, and constantly on Zhang’s address book list to harass, and Zhang himself threatened to intimidate, and arrange for personnel to collect debts. The posting of large-character posters with insulting language on the door of Zhang’s house caused family conflicts and worsened his interpersonal environment.
According to the verdict, Zhang because of two micro credit loans to the micro bank has a total of more than 20,000 yuan has not returned in time, the micro bank has repeatedly through mobile phone text messages to Zhang to collect. In the lawsuit, Zhang Mou provides his address book in the contacts personnel to Zhang Mou reflected by the micro-particle loan collection personnel telephone harassment of WeChat chat records, collection personnel by text message to send a letter of notification and filing a notice (said Zhang Mou “has constituted a loan fraud”), the door posted “sell your body to pay back the debt”. “The photos of the notes and the information of complaints about the bad behavior of the collection agents in the online platform are used to prove the improper behavior of the collection agents.
Wezhong Bank, in addition to the source of which is marked as Wezhong Bank of the collection of text messages said that recognition, the rest of the text messages, WeChat chat records, “sell yourself to pay the debt,” the authenticity of the photo of the note are not recognized, the network platform complaint information that “has nothing to do with the case.
However, Zhang Mou’s appeal was not supported by the court. The trial court found that the source marked as Wezhong Bank’s text message collection records, collection personnel and no obvious improper language, can not be found to constitute infringement; the rest of the senders of text messages can not determine the association with Wezhong Bank, and text message content in the words of some deliberately exaggerated legal consequences of delayed repayment and warning of the consequences of derogatory reputation, but still should be regarded as some of the debt collection process of excesses language expression, is not sufficient to find that constitutes a tort.
The court also held that the WeChat chat records can not reflect the specific information of the collection personnel, nor can it reflect the language, behavior and other specific information, is not sufficient to identify the existence of infringement; “sell your body to pay debts” note photos can not reflect the posting of the note who is the specific actor, and what is the relationship with Weizhong Bank; online platform complaint information content can not be verified, and can not determine the relevance of the case, can not be used as the basis for the case.
Collection agent commission up to 50%?
The relevant departments strictly prohibit violent collection, but the third-party agencies are very “cunning” in the specific collection process.
(hereinafter referred to as “Hongzhi Company”), Chen Li, chairman of the board of directors of Chengdu Hongzhi Financial Technology Company Limited (hereinafter referred to as “Hongzhi Company”), and others, for the crime of infringement of citizens’ personal information, was prosecuted by the Chengdu Procuratorate on April 29, 2020.
It is understood that Hongzhi’s business scope is to accept commissions from financial institutions to engage in financial information technology outsourcing, financial business process outsourcing, etc. Since its inception, the company has accepted commissions from institutions such as Micro Focus Bank and 51 Credit Card to conduct collection business.
According to the confession of Chen Li, the chairman of Hongzhi Company, in March 2017, the company’s main source of business is some of the online technology finance company’s collection business, the collection business of Microzhong Bank, as well as some licensed consumer finance company’s collection business.In March 2018, Hongzhi Company carried out a legal person replacement, increased the collection and reminder business, the purpose of increasing these two businesses is to want to receive the “Weizhong Bank” collection business, the latter clearly informed that there must be two business scope in the business license before cooperation with its company.
It is reported that Hongzhi company’s profit model is divided into two: the debt does not exceed 30 days called the reminder business, more than 30 days called the collection. The charge for the reminder business is based on per person per month per table, the A company pays 10,000 yuan per month per table to Hongzhi Company, and the company pays 4,000 to 4,500 yuan per month to its employees. The charge of reminding business is increased according to the increase of overdue days, overdue 30 days to 60 days, the success of reminding can be about 10%, overdue 60 days to 90 days, the success of reminding can be about 20%, overdue more than half a year the success of reminding can be about 50%.
According to Cheng Penghui, the legal representative of Hongzhi, there are two ways for Hongzhi to obtain citizens’ personal information: one is that the client authorizes Hongzhi to log on the platform of the client to view the information of the person being collected, and the other is that the client will encrypt the information of the person being collected and transmit it to Hongzhi through the network. Mao is responsible for decrypting the encrypted information received, and then distributes the information sent by the principal to the corresponding project manager, who then sends the information to the collector for telephone collection. Hongzhi Company can only choose the partner company, what information the partner company provides, and Hongzhi Company conducts collection based on this information. The commissioning company usually provides Hongzhi with the name, home address, work unit, loan amount, the overdue time, my contact telephone number, and the contact telephone numbers of relatives and friends of overdue customers.
As far as it knows, Wizhong Bank sends Hongzhi about 1,000 pieces of information about the defaulters every month, and the company has received about 12,000 pieces of information about the defaulters since March 2018 when it cooperated with Wizhong Bank.
Cheng Penghui confessed that there are three methods of collection, one is calling from a fixed landline, one is calling over the internet, and one is calling through a mobile phone card with an unregistered name, and departmental employees use their own mobile phones to install unregistered mobile phone cards.
Zhang Peng, who worked as an operations manager at Hongzhi, said that he was mainly responsible for docking business with Party A’s company for collection projects. In addition to docking the business, it was also responsible for overseeing the supervision of the collection agents under its management to call the debtors for collection, checking the attendance, salary and performance of the collection agents and the response to the complaints of the debtors.
It is understood that the collector is through the way to call for collection, the first is to play once the debtor’s own phone, get through on the phone to remind, can’t get through will continue to play second time, for the debtor’s own words, up to five a day, can’t get through the case will contact the debtor’s unit or relatives and friends, up to three relatives and friends plus unit phone, asking them to tell the debtor, call the debtor to pay back the money.
Zhang Peng felt that the sources of information used about the friends and relatives of the debtor were not legitimate because the friends and relatives of the debtor did not owe money. One type of phone they use is the EYE calling system, which is a VoIP phone; another is the use of a black card phone. The black card is the mobile phone card of the virtual network operator, all virtual number, the number begins with 164, 166, etc. The black card does not need to be registered with a real name, because all the relevant information is virtual. The use of words is mainly to pressure the debtor to pay back the money, for example, will tell the debtor they want to arrange for staff to come to the door to investigate, that is, let the debtor feel that someone will come to the door to look for trouble, to the purpose of pressure on the debtor.
According to the testimony of Hongzhi Company telephone collector Zhou, it went to Hongzhi Company telephone as a collector through 58 Tongcheng at the end of July 2018, the collection phone has a network phone, and the company with a black card mobile phone. Because the VoIP phone did not have a fixed number segment, the debtor could not trace the collection phone number, and the black card phone was a non-smartphone issued by the head of the company’s operations department. The project director said that when using the network telephone collection can not be abusive and threaten the person to be collected, if there are people who want to abuse and threaten to play black card mobile phone.
Zhou Mou often heard people around him use black card mobile phones to call and send text messages to threaten and abuse the collectors. There are two kinds of objects that are abused or threatened by the collector, one is the collector himself and the other is the collector’s relatives and friends. The first one is to keep calling until the collector pays off the debt, and the second one is to p picture the collector’s relatives, with nude photos of the collector, as well as funeral pictures and p pictures of the terminally ill.
The court held that Chengdu Hongzhi Financial Technology Co., Ltd. was entrusted by financial institutions and online lending companies to engage in collection business, in violation of state regulations, unscrupulously and illegally received personal information of citizens provided by the entrusted parties and used it for collection work, causing relatively bad social influence in the process of using the information, and its behavior has constituted a crime of infringement of citizens’ personal information. The Public Prosecution Office charged the defendants Chen Li, Cheng Penghui, Li Yuzhen, Yuan Jianzong, Liu Shengwon, Wang Miao, Zhang Peng, and Bo Yunshang with the crime of infringing on citizens’ personal information. The facts of the charge are clear, the evidence is true and sufficient, and the charge is substantiated, and this court supports it. The court decided to apply a suspended sentence to the defendant based on the specific circumstances of the crime and repentance performance in this case.
Non-performing rate climbs: $5.52 billion in credit impairment losses last year
Headquartered in Shenzhen, Guangdong Province, Micro Focus Bank, the first private bank and Internet bank in China, was established by Tencent and other well-known private enterprises such as Baiyeyuan and Liye Group.
In May 2015, Weizhong Bank launched an online, pure credit, pay-as-you-go microfinance product called “Microfinance” for low- and middle-income people in cities and people in remote and underdeveloped areas to meet their needs for “on-demand loans and ready access”.
According to the Annual Report, as of the end of 2019, “Microlending” has granted more than 460 million loans to more than 28 million customers in nearly 600 cities in 31 provinces, municipalities and autonomous regions, with a cumulative lending volume of more than 3.7 trillion yuan; about 77% of the credit customers are engaged in non-white collar service industry, and about 80% are college students or below. education; the average pen loan was approximately $8,000.
From 2017 to 2019, Micro Focus Bank’s revenue was 6.748 billion yuan, 10.029 billion yuan and 14.87 billion yuan, respectively, and its net profit was 1.448 billion yuan, 2.474 billion yuan and 3.95 billion yuan, respectively.
It is worth noting that Micro Focus Bank’s credit impairment losses included in the calculation plummeted to $5.52 billion from $2.59 billion in 2018, an increase of 112.74%, far exceeding the sum of credit impairment losses in 2017 and 2018. Its non-performing loan ratio also rose 0.73 percentage points, from 0.51% at the end of 2018 to 1.24% at the end of 2019. It stood at 0.64% at the end of 2017.
In terms of asset quality indicators, Micro Focus Bank’s provision coverage ratio stood at 444.31% at the end of 2019, compared to 848.01% at the end of the same period last year. In terms of profitability indicators, Micro Focus Bank’s return on total assets in 2019 further dipped to 1.55% , down 0.09 percentage points year-on-year, compared with 2.17% in 2017.
Li Nanqing, President of Micro Focus Bank, said that over the past year, against the backdrop of increasing economic downward pressure, the Bank adhered to a prudent risk appetite policy and took the lead in the industry in changing the asset quality criteria for non-performing loans from 90 days overdue to 60 days overdue at 1.24%, loan provisioning ratio of 5.52%, provisioning coverage ratio of 444.31%, liquidity coverage ratio of 585.20% and capital adequacy ratio of 12.90 per cent, with major risk indicators better than the industry average and in line with regulatory requirements.
It is also reported that in August last year, Micro Focus Bank was fined 2 million yuan for four “mistakes”: the head of the financial department did not perform his duties without approval for a long period of time without rectification; issuing credit loans to relations; organizing employees to run businesses and employees using the bank’s loans to purchase stocks and futures.
Regarding corporate governance, Micro Focus Bank’s annual report said, “In response to the problems found in internal and external inspections, we attach importance to the implementation of responsibilities, strengthen effective rectification, and ensure the effective implementation of internal controls.”
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