Court fine defaulters face tougher penalties
Print Edition
China’s Supreme People’s Court is considering more punitive measures against people who default on court fines.
This follows the launch last month of an online database allowing the public to check the names of defaulters.
According to an SPC statement released yesterday, the court is putting more pressure on those included in the defaulters database to make them fulfil court judgments more quickly.
In this, the SPC is cooperating with the Credit Reference Center under the People’s Bank of China, China Securities Regulatory Commission, the Ministry of Public Security and other departments.
Currently, the database is shared with state-owned banks for them to punish parties in lawsuits who fail to pay damages. Banks can freeze and transfer bank account funds or decline loan requests, under a memorandum of understanding signed by the SPC and state-owned banks.
The state-owned banks include the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of China, the China Construction Bank and the Bank of Communications.
“Those on the blacklist will be limited or banned from various activities such as government procurement, tender, administrative approval, credit loans... Their activities will be restricted,” said Liu Guixiang, a senior SPC official.
SPC figures showed that 31,259 defaulters had been submitted by courts across the country to the list by Monday, and the site had been visited 180,000 times since it was launched on October 24.
Of defaulters, 25,625 are individuals, and the remainder companies.
Half of defaulters refused to follow court orders by fabricating evidence and carrying out threats and violence. Other strategies involved hiding and transferring properties.
According to the statement, companies and individuals are now using the database for background checks before reaching deals.
The statement said 1,045 people and companies on the list had fulfilled court orders since the database went online.
“A mature and fair social credit system is the most effective mechanism to solve troubles in judgment implementation,” said Xiao Jianguo, professor with Renmin University of China.
The database followed regulations introduced in October, saying that those capable of fulfilling court judgments but who fail to do so will be punished in accordance with the law.
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