Lenovo P2P Unit Loansharks Criticized for Violence Against Debtors

Xu Wei

(Yicai Global) Jan. 17 -- EloanCN, the peer-to-peer lending arm of Chinese computer giant Lenovo Group Co., has expressed its condemnation of violent behavior among its debt collectors against borrowers, online media outlet The Paper reported today.

Loansharks associated with the Beijing-based lender have been accused of heavy-handedness against clients, especially farmers and small businesses in rural areas.

The company has set up a dedicated debt collection department in response to the reports, and local partners also take part in the management of loan payment collection, The Paper cited a representative of the EloanCN as saying.

"EloanCN cooperates with relevant departments of public security to ensure the company's debt collection is in line with legal requirements and legal measures are taken against untrustworthy debtors, the representative said.

"We are firmly opposed violent debt collection. We have been stepping up the supervision of our partners, and have taken active measures to protect the lawful and legitimate rights and interests of investors and borrowers, he added.

However, the companys debt collection is not as civilized as described. On the website of China Judgements Online, there are 15 viewable cases involving violent debt collection related to Eloancn.

The cases state that collectors used abusive language, beat, threatened, and blackmailed the debtors, many of them had criminal records.

Established in 2007, EloanCN has offices in hundreds of cities in the country, covering over 1,000 districts and counties. The company received funding from Lenovo in November 2014, and has been an affiliate of Legend Holdings Corp. since May 2015.