The government of China outlawed debt collectors in 2000 due to cases of violence. However they now see the profession as key to the recovery of many debt-ridden Chinese banks and financial institutions.

Ministry of Labour and Social Security has supervised the training of the first batch of 100 debt collectors as the profession tries to establish legal status again.

Whilst it remains illegal to operate a a debt collection business, it is hoped that an increase in trained and qualified collectors who operate within the law can be a solution to China's huge debt problem. For example, the China Banking Regulatory Commission this year said that China's bank's had bad loans totalling a whopping $150 billion.

Using an assumed name, Zhao Qian, head of a debt collection company in Beijing said "People always regard us as an underworld group, and link us to illegal activities such as violence, intimidation, and even kidnapping."  
 

Zhao admitted that sometimes they have to use violence. "Many debtors are so shameless. You cannot get the payment through normal measures. It is inevitable that there will be some stories of violence during debt collection," he said.

 
Although his company is registered as a commerce and trade enterprise, his main business is to ask for debt payment on behalf of banks, companies, and even individuals. Beijing News estimates that in the capital there are around 300 such companies all waiting for a legal license for their business. Approved government training seems to be the key to this.

In China, the credit system remains basic, and there is are specific regulations. Debt has historically been about keeping face and as attitudes have changed, banks have suffered. Even so, many financial institutions still have no special departments or arrangements to recover debts.