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Shengdian Dynamic | "More than fast" online, to help financial institutions quickly resolve bad risks.

2024.04.09

In recent years, under the combined influence of macroeconomic and policy adjustments, the number of overdue loans has increased sharply, and banks are facing greater control pressure. To this end, Yu Yi, a senior partner of Shengdian Law Firm, has launched a comprehensive legal service product called "Over Fast Enforcement", which aims to manage the whole process of overdue bank claims in order to quickly resolve adverse risks.

1. Product Overview

"Over-fast execution" refers to the full-process comprehensive legal service program in which a lawyer intervenes when the loan is overdue, quickly obtains enforceable legal documents and continuously tracks them until the loan is recovered.

2. Applicable Scenarios

This product is mainly aimed at personal mortgage loans, personal business loans and corporate mortgage projects with overdue or other risk signals in the early stage, and can be applied to all loan projects that the bank deems necessary in the later stage.

3. Product Advantage

1.Significantly shorten the repayment time and improve the efficiency of loan quality control.

Lawyers intervene from the front end, I .e. when the loan is just overdue or when there is a risk signal, the lawyer intervenes and obtains a legal instrument with enforcement force in a short time. Subsequently, according to the performance of the debt in a timely manner to file an application for enforcement, greatly shorten the litigation process, effectively alleviate the traditional collection mode due to the long litigation recovery cycle brought about by the assessment, profit and other aspects of the operating pressure, effectively improve the quality of loan risk control.

2.It does not affect the five-level classification and assessment of loans.

Through non-litigation in the loan just overdue or risk signals quickly intervene, timely prevent overdue loans into non-performing loans, to meet the assessment needs of financial institutions. In the traditional collection process, loans may be classified as non-performing after entering litigation collection, which has a huge impact on financial institutions in terms of credit quality assessment, approval authority, institutional profits, employee performance and other operational aspects. The use of this product for non-performing resolution is not a lawsuit, so it will not affect the five-level classification of loans, which can greatly alleviate the above-mentioned operational pressure.

3."Zero cost and zero cost", attorney's fees are generally borne by the defaulting party in accordance with the credit contract.

Except for special circumstances where the bank is required to advance, the bank is not required to advance any fees. The attorney helps the bank to pass on the attorney's fees to the defaulting party (the debtor and the guarantor) and is confirmed by a legal instrument issued by the court. If the borrower defaults, the attorney's fee may be included in the scope of enforcement.

4.Dedicated docking services to reduce the workload of financial institutions

The lawyer is responsible for all follow-up collection, follow-up and execution, including negotiation of mediation plan, signing of mediation agreement, communication with court, subsequent repayment collection of borrower, application for enforcement, etc., which can effectively save cost and time for banking institutions.

5.It is conducive to reducing the repayment pressure of borrowers and guarantors, reducing the adverse impact of litigation on their credit, and helping borrowers and guarantors get out of the debt vortex.

When the loan is overdue or there is a risk signal, professional lawyers will intervene to provide legal assistance to the borrower or guarantor, and timely convey the bank's goodwill (including but not limited to reduction, installment, extension and loan restructuring plan, etc.) to the borrower or guarantor and form legal documents, which is conducive to reducing the repayment pressure of the borrower or guarantor, reducing losses, so as to resolve non-performing loans at the source.

Through this product to carry out non-litigation mediation, for the borrower, the information disclosure platform will not show that it has the case, property seizure and other bad information, its subsequent flexibility to take their own disposal of property, re-lending to other financial institutions and other ways to dispose of the bank's loans.

6.Governance of litigation sources, saving judicial resources and reducing the risk of public opinion in financial institutions.

In February 2021, General Secretary Xi Jinping presided over the eighteenth meeting of the Central Committee for Comprehensively Deepening Reform and delivered an important speech. The Opinions on Strengthening the Governance of Sources of Litigation and Promoting the Diversified Resolution of Contradictions and Disputes, which was reviewed and approved at the meeting, emphasized that it is necessary to grasp the end, To cure the disease, we must also focus on the prevention of non-litigation dispute resolution mechanisms, strengthen the prevention of conflicts at the front, and reduce the number of litigation from the source. "More than fast" comprehensive legal service products through mediation from the front end of the contradiction to actively resolve financial disputes, is to grasp the front end of the disease. On the one hand, it saves judicial resources, on the other hand, it reduces the litigation burden of the parties, and reduces the public opinion risk of financial institutions from the source.

4. Business Process

5.The comparative advantages of "over-fast" products and single-endowed strong notarization and traditional litigation.

Take, for example, the treatment of financial claims with a subject matter of $10 million:

	Traditional Litigation	Fu Qiang notarization	"More than fast" products
Time	6-10 months The ordinary procedure of the first instance is 6 months + the appeal period of the second instance (such as appeal) is 15 days, the defense period is 15 days, and the second instance period is 3 months (even if the parties do not raise objection to jurisdiction, it takes 10 months for the whole process to be seamlessly connected)	1 month The notary office shall issue an enforcement certificate after reviewing the borrower's default.	7-30 days The mediation is usually completed 7-30 days after the acceptance of the mediation case, and the judicial confirmation ruling and mediation letter are obtained.
Cost	1.The first instance acceptance fee is 81800 yuan; (Common Procedure Standard, Mediation Halved) 2.The acceptance fee for the second instance is 81800 yuan (charged for the amount of the subject matter of the appeal dispute); 3.If the attorney's fees are actually paid, they can be claimed together in the prosecution.	1.A notary fee of $25000 is charged at 0.25 per cent of the total debt; 2.Follow-up need to hire a lawyer to apply for compulsory, the lawyer's fee is charged separately; 3.Lawyer fees cannot be passed on.	1.Judicial confirmation does not charge a case acceptance fee; 2.The attorney's fees are generally borne by the breaching party in accordance with the credit contract.
Lawyer Service Phase	From the beginning of the prosecution to the end of the execution, completion.	Application for enforcement to the end of the execution, completion.	From the date the loan is overdue to the entire loan recovery.
风险	1. Involving first instance, second instance and retrial procedures, the litigation cycle may be long; 2. The period may involve a variety of uncertainties such as the debtor's insolvency; 3. Judgment results can be difficult to predict.	1. The party concerned may revoke the compulsory execution certificate issued by the notary office by applying for an execution objection; 2. Uncertainties such as the insolvency of the debtor may be involved during the execution objection period; 3. If the execution objection is successful, the case needs to be filed, litigated and executed, and the recovery cycle is lengthened.	1. Legal documents with enforcement force can be obtained in the shortest possible time; 2. The result of mediation is reached voluntarily by the parties. After the court reviews the legality, voluntariness and enforceability of the mediation agreement, it can directly enter the execution procedure according to Article 202 of the Civil Procedure Law.

6.Charging standard and payment process

（一）Charging standard

1.Prophase attorney fees

Cost standard: half of the case acceptance fee charged by the court, as shown in the table below.

Subject amount	Rate
No more than 10000 yuan	Each charge 50 yuan
The part exceeding 10000 yuan to 100000 yuan	1.25%
The part exceeding 100000 yuan to 200000 yuan	1%
The part exceeding 200000 yuan to 500000 yuan	0.75%
The part exceeding 500000 yuan to 1 million yuan	0.5%
The part exceeding 1 million yuan to 2 million yuan	0.45%
The part exceeding 2 million yuan to 5 million yuan	0.4%
The part exceeding 5 million yuan to 10 million yuan	0.35%
The part exceeding 10 million yuan to 20 million yuan	0.3%
The part exceeding 20 million yuan	0.25%

2.Late attorney fees

If the borrower defaults and needs to apply for enforcement, the rate standard of the lawyer entrusted by each financial institution shall be supplemented on the basis of the fee standard of the previous attorney's fee.

（二） Payment process

1. The upfront attorney's fees may be borne by the bank in consultation with the borrower and the guarantor (if any), generally by the borrower and the guarantor (if any). Under special circumstances, advance payment may be made by the bank and subsequently borne by the borrower and guarantor (if any).

2. The later costs have been expressly agreed in the effective instrument to be borne by the borrower and the guarantor (if any), and in the application for enforcement, the bank shall pay the later costs at the rate of the recovery amount after the realization of the claim.

Contact Information

Contact Phone:

Lawyer Yu-yi:15813869159

Email address:

yuyi@shengdian.com.cn

Contact Address:

Floor 17 and 25, Block A, International Innovation Center, 1006 Shennan Avenue, Futian District, Shenzhen

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Introduction of Yu yi's lawyer team:

For more than ten years, Yu yi lawyers have carefully built a financial services team.