Summary: When the pressure of personal debt grows rapidly, it is important to avoid "rushing to the doctor" and beware of illegal fundraising in the "debt relief category".
In recent years, the debt pressure of many households and small and micro enterprises has grown rapidly, and in this case, debt resolution institutions have emerged, promising to help debtors solve their debt problems by charging only part of the handling fee, and some of them have taken advantage of this opportunity to set up illegal fundraising**, which has brought heavy losses to debtors who are already mired in debt problems.
What is "debt resolution" illegal fundraising?
Illegal fundraising refers to the illegal business in the name of "debt resolution" such as so-called "debt services", "debt resolution" and "debt resolution consulting" without the approval of the financial management department, and promises to convert the claims and debts in the hands of the "customer" into cash flow and return the income in the name of providing the "customer" with services such as debt offsetting, custody, integration, resolution, and physical exchange, and induces the "customer" to pay consulting fees, deposits, and even "investment shares". In fact, such institutions do not examine the authenticity of the creditor-debtor relationship, nor do they take any measures to resolve debts, and they do not have any profit-making business and cannot generate profits.
Characteristics of illegal fundraising in the "debt settlement category".
Boasting of their own strength. Criminals usually promise to solve debt problems quickly, decorate the company's façade, publish promotional advertorials on the Internet, create a powerful image, and even fabricate successful cases to win the trust of debtors.
Promise high returns. Criminals claim that in addition to solving the debt problem for the debtor, it can also allow the debtor to obtain huge profits in the short term.
Fictitious compensatory capacity. These illegal debt resolution agencies often claim to have a strong solvency and can quickly pay off their debts through a variety of means. In reality, however, they have no real compensatory capacity and are only constantly absorbing new funds to maintain their operations.
Concealment of risk. In the publicity, illegal debt resolution institutions often emphasize the effectiveness of their operation mode one-sidedly, do not hesitate to distort the facts, deliberately conceal the existing risks, and may even fabricate false facts, forge documents and other means to deceive the debtor, so that it will fall into the first place.
The harm of illegal fundraising in the "debt solution" category**
First, it infringes on the debtor's lawful property. Once the ** is revealed, the funds such as "consulting fees" and "service fees" that the debtor has invested will be difficult to recover. Second, it undermines market order and financial stability. Illegal debt resolution institutions are not legitimate and reasonable economic participants, and their fraudulent acts disrupt the order of the financial market and bring instability to the financial system. Finally, when it is exposed, it will also undermine the public's confidence in resolving the debt problem through legal and compliant means, affect the trust of the non-performing asset disposal industry, and even affect the public's confidence in the economy.
Recommendations on preventing illegal fundraising in the "debt settlement category"**
Be vigilant:It is necessary to remain vigilant against advertisements for debt resolution business, and do not easily believe the so-called false propaganda such as "quick debt resolution" and "risk-free and high return". Resolving the debt problem takes time and effort, and there are no shortcuts.
Prudent selection of institutions:The process of debt resolution is also the process of disposal of non-performing assets, and the formal disposal methods of non-performing assets include litigation recovery, asset restructuring, debt-to-equity swap, diversified sales, asset replacement, leasing, bankruptcy liquidation, etc. The disposal of non-performing assets is a financial activity, so it needs to be licensed, and the institutions currently licensed to operate in the country include Huarong, Great Wall, Oriental, Cinda and Yinhe, five major asset management companies, and another 59 local asset management companies.
Read the contract carefully:Before signing a business contract, it is necessary to carefully read the terms of the contract to understand the rights and obligations, risk warnings, and liabilities for breach of contract. If you have any doubts or unclear points, do not sign recklessly, you should first ask the salesman to explain in detail, and if necessary, you can also consult a lawyer and other professionals.
Timely rights protection:If you find that you have been harmed by illegal fundraising for debt settlement, you should report the case to the local public security organ and the illegal fundraising department in a timely manner to protect your legitimate rights and interests.
The content of this article is original, **please indicate** in "Guangzhou Financial Technology***