Courts Crack Down on Noncompliant Debtors

A man in Sichuan province was fined 500 yuan ($70) by a court on Monday for violating a legal verdict and disregarding a ban that prevented him from purchasing airline and high-speed train tickets. The defaulter, identified as Wei, had been issued the ban by the Qingyang District People’s Court in Chengdu on February 20 due to his failure to repay bank loans. The court had explicitly stated that the ban would only be lifted once Wei complied with the verdict and repaid the loans.

However, it was discovered that Wei had flown from Tibet to Sichuan on April 28, having purchased a ticket from a scalper, thus violating the ban. The court declared that Wei’s actions constituted a breach and warranted punishment. Considering his admission of guilt, the court decided to impose a fine on him.

Chinese courts have increasingly taken stringent measures against loan defaulters over the past decade, implementing restrictions in their daily lives to compel them to repay their debts promptly. The Supreme People’s Court, the highest judicial authority in the country, has prohibited defaulters from purchasing flight and train tickets, as well as high-value items like golf club memberships and real estate. These measures aim to inconvenience defaulters and encourage them to rectify their behavior.

The Supreme People’s Court has made it clear that defaulters who defy such bans will face detention or fines, with severe violations potentially leading to criminal charges. Last month, the top court instructed courts nationwide to conduct thorough reviews of defaulters and impose harsher penalties on those who breach bans. This directive followed the discovery that some defaulters were still able to purchase flight and train tickets through scalpers.

the top court of the PRC would issue judicial guidelines in the future to expedite the enforcement of rulings

In a separate incident at Beijing Capital International Airport, a passenger named Li was detained by the police after it was discovered that his passport information differed from the details he had provided when booking a ticket from Beijing to Wuhan. The passenger was identified as a defaulter who had violated the ban by acquiring the ticket from a scalper.

Mao Lihua, deputy head of the top court’s enforcement bureau, expressed the need for joint efforts with public security departments and prosecuting authorities to launch a special campaign against individuals failing to comply with court verdicts. Mao also revealed that the top court would issue judicial guidelines in the future to expedite the enforcement of rulings.

According to data released by the top court on May 19, a total of 3,198 defaulters were criminally punished for noncompliance with verdicts last year.  More fierce actions are needed to make sure the laws are enforced.

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