It's 2018, and there are new trends in online lending. China's first peer-to-peer (P2P) platform has reportedly been set up in Xiamen. The official website of the platform, called NongJinbao Hujin, shows that "after publicity, it has obtained the official filing documents (for online lending institutions)." On the other hand, there are new measures to deal with delinquent borrowers.
At the end of last year, relevant departments vigorously rectified the cash loan business, which affected many platforms. The old timers took advantage of this opportunity to make waves, resulting in a concentrated outbreak of overdue, and the overdue rate of many platforms reached more than 50%. In the past, platforms have skirted the legal fringes when faced with overdue payments, mainly through phone calls or even threats. The average overdue case, if brought to court, takes about six months, and some even longer. During this period of time cost, money cost, let most companies daunting.
Internet finance case perfect match
Now, a new way of case judgment based on network is born, that is, Internet arbitration. Internet arbitration means that an arbitration institution establishes network arbitration rules, builds network platforms, receives and transmits electronic arbitration documents, and holds arbitration activities such as court hearings, cross-examination and defense completely online. The prerequisite is that disputes mainly occur in the network environment, and the relevant evidence in the process of occurrence, such as electronic contracts, funds flow, etc., can exist in the form of electronic evidence. And shall be adopted in the arbitration process. Compared with court rulings, Internet arbitration has obvious advantages, not only the time is fast, but also the cost is low. Since it mainly accepts Internet overdue cases, it is also more professional.
"Based on past experience, it takes about 6-7 days for an Internet arbitration to be accepted and adjudicated, and the fee is generally no more than 10 percent of the overdue fee," an Internet arbitration official said. "Both parties do not need to be physically present, and the trial is all done online."
The vast majority of Internet finance cases are completed online, and the relevant electronic contracts and key materials are all digital documents, which are credible evidence for Internet arbitration agencies. Moreover, Internet financial cases generally occur all over the country, and Internet arbitration institutions have no regional jurisdiction restrictions, arbitration does not implement level jurisdiction and regional jurisdiction, so it is very suitable for handling such cases. More importantly, the Internet arbitration system is one final arbitration, which has legal effect immediately after the judgment, and has a great deterrent effect on Lao Lai.
Old Lai shaking platform to welcome hope
In the face of Internet arbitration, many laolai said they would actively repay. The head of one platform said that due to the access to Internet arbitration, we can deal with overdue cases in bulk, and our collection has become more efficient. Some of them had made it clear that they would not repay the money, but after we submitted the case application through the Internet arbitration agency, the borrower took the initiative to repay the money after 2 days. Such a scenario would have been unthinkable before.
Without Internet arbitration, the platform mainly collects overdue cases by telephone. When the collection becomes difficult or even becomes dead debt, it can only transfer the cases to a third party at a low price, which has a significant impact on the normal operation of the platform. With the Internet arbitration, platforms only need to connect data, become members and upload overdue cases in bulk, without increasing the burden on the platform.
A person in charge of one platform, who asked not to be named, revealed that during the outbreak of late cases, the late rate of its platform accumulated high, more than 70 percent. Through the Internet arbitration, can greatly reduce the delinquency rate, whether inform the borrower in advance, or deliver the arbitration result, is an effective way to reduce the delinquency rate.
Although it is not a core user of Internet arbitration, Cloud Moneybag, which has a good asset side, also holds an open attitude towards Internet arbitration. The person in charge of Cloud Money Bag said that the establishment of a credit society not only requires the all-out efforts of intermediaries, but also needs a good channel for complaints and arbitration. Reasonable and legal construction of a credit society, so as to let the elderly less, less, is the performance of the progress of the whole society.
