Recently, PPmoney officially released content and announced the content of the CEO’s online communication on April 23. This speech revealed that PPmoney is currently in trouble, with the callback rate continuing to decline, making it more difficult to collect money in the future.

Tuandai.com, which has been on file for three years, also opened a court hearing on April 25. Due to various reasons such as the epidemic, the case was not broadcast live to the public, and the details of the trial were not disclosed. However, the trial has taken a big step, and next comes the trial and conviction.

According to data released by the China Banking Regulatory Commission, by the end of 2021, the number of closed online lending institutions whose existing P2P business has not been cleared has dropped from 1,466 to 1,169, and the outstanding balance has dropped from 820.7 billion yuan to 497.4 billion yuan. In November last year, the number of P2P online lending institutions actually operating across the country was completely reduced to zero.

P2P platforms that have not yet withdrawn from the Internet are facing attacks from three sides. Without revenue pressure, the dilemma of collection difficulties and the pressure of public prosecutors and law have left these platforms with no way out.

Trapped by Feida

The dilemma faced by PPmoney is a microcosm of the entire P2P platform. The current collection situation on P2P platforms is not optimistic. As the pressure on outstanding balances continues to decline, collection becomes more difficult and the non-performing rate is also rising.

According to the online communication between PPmoney CEO, CEO Hu Xin said that the current collection is not ideal, and as time goes by, there are fewer and fewer reminders.

PPmoney’s payment methods are mainly electronic, face-to-face and French. Affected by the epidemic, interviews and reminders by phone have been put on hold. Due to the influence of policies, it is difficult to find a court that can file and enforce P2P cases in batches, so the recall process is relatively slow. At present, there are also attempts to hire third parties for collection, but the collection is not ideal.

It is worth noting that CEO Hu Xin revealed that a big reason why PPmoney is in its current predicament is its cooperation with CMA CGM. He said, "At that time, the CMA conducted many false projects and transferred assets, and we were deceived miserably by the CMA. However, due to the characteristics of the P2P industry, no case has been reported. CMA CGM transferred the lender's money away and has not yet paid."

When talking about whether PPmoney will file a case, Hu Xin's expression was vague and said that he did not want to be filed, but if the matter really came to this point, he would accept it calmly.

According to evidence provided by some lenders, PPmoney is facing great regulatory pressure. Last year, a lender went to court to sue and was told by the court that "the defendant Wanhui Investment Management Co., Ltd. is suspected of a criminal offense and it is recommended to report the case to the public security agency with jurisdiction." This year, there was news that the Guangzhou Municipal Government has set up a special working group to rectify the PPmoney online loan platform and is conducting a comprehensive verification on whether it is suspected of economic crimes. Currently, the Economic Investigation Detachment of the Guangzhou Municipal Public Security Bureau is accepting reporting materials submitted by platform company lenders on site or by mail, and is investigating issues related to alleged economic crimes reported by lenders.

In fact, most PPmoney lenders are currently waiting to apply. As the overdue period of the platform gradually lengthens, the speed of repayment slows down, discounts become stronger, and lenders’ trust in the platform is gradually exhausted. Even if the platform does encounter difficulties, most lenders still hope that third-party public prosecutors and law enforcement will intervene to interfere with the platform's payment work.

However, even after filing, the platform may not be able to quickly advance the payment work, and the complexity of the case itself will also lead to delays in court judgments.

According to recent news, the Dongguan Intermediate People's Court announced at 9:00 on April 25, 2023, that the company was charged with the crime of fund-raising fraud, illegal absorption of public deposits, manipulation of the securities market, and false issuance of special value-added tax invoices. , the crime of false invoicing and other crimes were prosecuted against the defendant Derivative Technology Group Co., Ltd., the defendant Tang Jun and other 46 people. This means that Tuandai.com, which has been on file for more than three years, has entered the court session.

Since the trial of this case has not been made public, there is currently no news about the outcome of the trial or whether the verdict will be announced in court. However, the trial

From voluntary retirement to filing the case to the court's verdict, every link in between It may take several years. Not only are lenders exhausted physically and mentally, but the platform is also facing malicious complaints from some lenders, difficulties in collecting collections from merchants, company revenue shutdowns, and pressure from increasing supervision. At present, almost all platforms that have not withdrawn are in a difficult situation.

The platform’s living environment is harsh.

According to information recently disclosed by the China Banking Regulatory Commission, public security agencies and regulatory agencies are increasing their efforts to assist platforms in cracking down on debt evasion and accelerating the resolution of online loan repayment issues.

After regulatory intervention, in addition to accelerating operations such as accessing PBOC credit for debt evaders and freezing Alipay for debtors, the responsibilities of platforms, shareholders, executives, etc. will be further clarified. This means that once a case is filed, it will be difficult for the senior managers of P2P platforms to escape jail. This is also an important reason why most platforms actively introduce various retirement methods to reduce their stock holdings in order to clear their positions.

There are currently many platforms such as Yili.com, Pioneer Finance/Online Information Platform, Dianrong.com, Jiufu, PPmoney, etc. They have launched many drop-off channels, including cash discount channels, commodity exchange, debt claims, etc. But judging from the responses from lenders, none of these channels satisfied them.

As the overdue rate increases, cash discounts become larger and larger. Some platform applications require as low as 20% off to be approved, which is unacceptable to lenders. Coupled with the fact that prices on commodity exchanges are inflated, claims for claims are considered to be platform evasion scams, causing the platform’s stock to retreat slowly.

Basics

Financial discounts are inevitable. The platform has no operating income, and collections are all outsourced. The cost of collections is also included in the amount of collections, so it can only be paid at a low discount. It is also a fact.

Platforms can only proactively collect debts by building their own collection teams or introducing asset managers. After regulatory intervention, the methods of collection have become more diverse and the methods have become tougher.

According to this year’s relevant work arrangements for P2P platforms, once supervision intervenes in online lending platforms, they must not only tighten the responsibilities of the platform, shareholders, and senior executives, but also recover unjustly gained executive bonuses and shareholder dividends, and some unreasonable Celebrity endorsement fees will also be fully pursued.

In order to expand their popularity, some early P2P platforms spent crazy money to hire celebrity endorsements. Mosquito legs are also meat. If the amount is recovered, the lender's loss situation will be improved to a certain extent.

In addition, the "Decision on Amending the Interpretation of Several Issues Concerning the Specific Use of Laws in the Trial of Criminal Cases of Illegal Fund-raising" issued this year also provides a legal basis for the trial of P2P platforms. The "Interpretation" adds new illegal ways of absorbing funds such as online lending, virtual currency transactions, and financial leasing, and also adds a new category of "illegal absorption of funds by providing 'elderly care services,' investing in 'elderly care projects,' and selling 'elderly products'" "" as the tenth item, provides the basis for punishing illegal fund-raising crimes in P2P, virtual currency, elderly care fields and other fields according to law.

From the judiciary to the public security and then to the administrative regulatory authorities, the rights and responsibilities for the removal of P2P platforms are clearly clarified at all levels. This is undoubtedly good news for lenders, but it is a mixed blessing for the platform parties.

According to statistical data, the actual number of P2P online lending institutions operating nationwide in November last year dropped to zero. This means that the P2P platform is already in a "non-operational" state. It is difficult to say whether it can survive until full payment is completed. After all, the platform itself does not have much money anymore.

In addition, the rising overdue rate on the platform continues to slow down the withdrawal process. Judging from the data released by some platforms, the overdue rate of the platform exceeds 90%, and some of them even reach over 95%.

An insider revealed to the "Consumer Finance Channel" that most of the overdue borrowers on the platform currently do not intend to repay, and will make malicious complaints in the face of normal collections, which results in poor recovery effects.

In fact, in the fight against debt evasion gangs, P2P platforms can do very little. Now the collection methods are restricted, and the debt evaders group together to fight. They hope that the platform will be filed and prosecuted. Cancellation, so that the living debt can be cancelled, and there is no need to pay back, this is actually a life and death race.

Currently, judicial intervention in collections has achieved good results, but the coverage and initiative of judicial collections are currently not enough. Platforms now hope that judicial assistance in collections will be more effective in settling loan balances and redeeming loans. people.

Faced with urging from lenders and pressure from regulators, the collection process itself has been slow and the platform has not yet completed the liquidation of its inventory. It is still unclear how to break the deadlock. Related Q&A: Related Q&A: All 5,000 P2P online lending institutions have ceased operations! Will you pay back the money you borrowed? What platforms are there?

On March 15, 2023, the China Banking and Insurance Regulatory Commission announced that all p2p illegal online lending platforms must be liquidated this year in accordance with the requirements.

The list of more than 5,000 illegal online lending platforms is as follows: