Home / Government / Local Governments News Tools: Save | Print | E-mail | Most Read | Comment
Blacklist Targets Shanghai's Bad Debtors
Adjust font size:

Poor credit records and ignoring court orders for more than six months will result in people being barred from purchasing property, securing bank loans and getting employment, the Shanghai Higher People's Court has announced.

The new blacklist of the city's credit and banking system will help businesses and banks reduce their risks.

Thee Shanghai courts deal with about 80,000 litigations and prosecutions every year. Of the total 10 percent don't pay compensation or the penalties imposed though they're in a position to do so. A businessman in Minhang District delayed paying 40,000 yuan (US$5157.6) in 2004 although he lived in a luxury villa with a pool.

To implement the verdicts the courts will work with Shanghai's credit system and ensure violators are blacklisted and get shown the door wherever they go seeking credit.

Shanghai Higher People's Court signed an agreement with the Credit Information Services Co, a firm funded by the Shanghai municipal government, in 2004 to hold the credit records of over 4 million people or a quarter of the city's population, the Shanghai Morning Post reported.

In 2006 Shanghai Higher People's Court signed agreements with banks and several financial institutions to provide the blacklist on request.

Since then credit reports on 1 million people have been forwarded to various enterprises. They can use the system to check the credit record of an individual before offering a loan or employment.

Linking individual records to the credit and banking systems has helped improve implementation of the verdict, the court said.

A man surnamed Chen who delayed paying a bank bill of 600 yuan (US$77.3) and ignored the court order was turned down when he tried to get a loan to buy property. He paid the bill after realizing he'd been blacklisted. He got the loan only after paying the bill and getting his name removed from the list.

The arrangement has also helped courts check litigants' credit rating and freeze their accounts if necessary. "We plan to extend the list to more credit systems," said Gao Wanquan, a judge with Shanghai Higher People's Court.

(China Daily February 6, 2007)

Tools: Save | Print | E-mail | Most Read
Comment
Pet Name
Anonymous
China Archives
Related >>
- Debtors to Appear on Court Blacklist
- Campaign Against Debtors Lands 80 Deadbeats in Jail
- Helping Banks to Assess Risk
- Loan Defaulters Beware As Court Gets Tough
- Small and Unsecured Loans Could Work for China
- Risks of Runaway Credit Remains: Official
Most Viewed >>
Questions and Answers More
Q: What kind of law is there in place to protect pandas?
A: In order to put the protection of giant pandas and other wildlife under the law, the Chinese government put the protection of rare animals and plants into the Constitution.
Useful Info
- Who's Who in China's Leadership
- State Structure
- China's Political System
- China's Legislative System
- China's Judicial System
- Mapping out 11th Five-Year Guidelines
Links
- Chinese Embassies
- International Department, Central Committee of CPC
- State Organs Work Committee of CPC
- United Front Work Department, Central Committee of CPC