As a formal consumer finance company, Zhaolian Finance's punishment for not repaying loans is very severe. There are five major penalties for defaulting.
Report to the credit bureau.
For those who do not repay, their bad personal records will inevitably be reported to the central bank by Zhaolian Finance. In the future, the stain of credit information will affect everyone's handling of bank loans, provident fund loans, job hunting and so on.
2. Report online credit information.
Zhaolian Finance will also report the borrower's bad record to the online loan credit, making it a cyber hacker and banned by the entire online loan industry.
3. Only China Merchants Bank and China Unicom.
Because Zhaolian Finance is a consumer finance company jointly established by China Merchants Bank and China Unicom, the non-repayment record of non-performing loans will affect the comprehensive score of borrowers in China Merchants Bank and China Unicom.
4. It has been collected for a long time.
As a formal financial institution, Zhaolian Finance has a perfect collection system. For those who do not repay, Zhaolian Finance will conduct long-term collection.
5. Go through legal procedures.
In some cases, Zhaolian Finance will hire a lawyer to go through legal procedures, take the debtor to court and ask the court to make a judgment. After the judgment, Zhaolian Financial Association will apply to the court for enforcement.
Above, we introduced what would happen if Zhaolian Finance didn't pay back the money. Generally speaking, there will be very serious consequences if you don't pay back the money in Zhaolian Finance, which most people can't afford.