We should know that banks are also doing business, and whether it is collection or prosecution, they have to pay corresponding costs. In recent years, the number of overdue credit cards in China has been increasing. If everyone is sued by the bank after the deadline, then the legal fee alone is not a small expense. In addition, even if the bank sues the debtor, it may not be able to recover the arrears. This is because some people really don't have money on them. Even if they are sued by the bank, they can't repay their debts. In the end, they can only become old lai.

Online loans only collect reasons for not prosecuting.

The prosecution process is long. Because filing a lawsuit in court requires a lot of materials, such as indictment and loan contract, it may take six months to several years from preparing the materials to winning the case. The prosecution cycle is too long, which not only fails to achieve the expected results, but also may lead to the platform easily missing the "gold collection period" and the loan recovery rate will also decline. The cost of prosecution is high. The prosecution may also need to hire a professional lawyer, and the cost is too high. In order to reduce losses and collect more interest, collection may be more appropriate.

Sue for slow payment. Due to the long prosecution period and the slow recovery of loan funds, the normal operation of the online lending platform will definitely require the return of funds. If the payment is not returned for a long time, it may lead to difficulties in the operation of the online lending platform itself, so collection is more appropriate than prosecution. The overdue amount of online loans is relatively small. General online loans are thousands of small loans, and tens of thousands of loans are relatively small.

Even if you sue the customer, you may not be able to repay the money.

Many people who borrow online loans are not very qualified. These online lending platforms are very relaxed when examining the qualifications of customers, resulting in many people with poor repayment ability can also borrow money. For these unqualified customers, it is expected that they will be overdue. At this time, even if these online lending platforms sue them to the court, according to their own income and assets, it is estimated that they will not be able to repay. At this time, banks or online lending platforms not only failed to recover the money, but also may bear high legal fees and legal fees.

At present, the lawyer's fee is not a small sum. In this case of peer-to-peer lending, a single lawyer's fee may reach thousands or even tens of thousands of dollars, and the legal fee may be higher. It stands to reason that these legal fees and attorney fees should ultimately be borne by users who are in arrears, but these users who are in arrears have no money at all, so even if the court decides, they will not bear these fees, and will eventually be borne by online lending platforms or banks themselves. Sometimes these expenses may be more than the user's debt, so it is not worth the loss.

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Overdue debtors will receive all kinds of information, which has achieved a certain purpose of collection, and the control of credit information is actually a kind of supervision. But, more importantly, it can be solved not only by SMS. Although such a huge business volume cannot be solved through prosecution, you can find a collection company. Collection companies can achieve better collection results through lower costs.