Legal basis, lack of legal authority and administrative coercion, some debt collection companies use threats, inducements, extortion and other improper means. Forcibly collect debts from debtors, even kidnap hostages, engage in violence and other illegal and criminal activities that endanger personal safety, in order to collect high remuneration. Such behavior is illegal.
Legal basis: Article 680 of the Civil Code of People's Republic of China (PRC) stipulates that it is forbidden to borrow at high interest, and the lending rate shall not violate the relevant provisions of the state. If there is no agreement on the payment of interest in the loan contract, it shall be deemed that there is no interest. If the loan contract does not specify the payment method of interest, and the parties cannot reach a supplementary agreement, the interest shall be determined according to the local or the parties' trading methods, trading habits, market interest rates and other factors; Loans between natural persons are regarded as interest-free.