Core Viewpoint - The announcement from Ma Shang Consumer Finance reveals ongoing issues with collection practices, particularly involving a major shareholder's subsidiary, raising concerns about the independence and fairness of their collection operations [2][9]. Group 1: Collection Practices and Issues - Ma Shang Consumer Finance has been under scrutiny for its collection practices, with reports of associations with problematic collection agencies, including Chongqing Xinmeng Technology Development Co., which has been involved in illegal collection activities [3][4]. - The company reported a revenue of 15.149 billion yuan for the year 2024, positioning itself as a leading licensed consumer finance entity in China [2]. - The collection process is critical for managing credit risk, yet it remains a high-risk area with frequent issues, prompting regulatory bodies to implement stricter guidelines [3][5]. Group 2: Complaints and Regulatory Attention - There are over 77,000 complaints against Ma Shang Consumer Finance on the Black Cat Complaint platform, highlighting issues such as threats and harassment, personal data leaks, unauthorized charges, and high-interest loans [5][6][8]. - Specific complaints include aggressive collection tactics, unauthorized membership fees, and loans with annual interest rates exceeding the legal limit of 24% [6][8]. - Regulatory bodies have taken notice, with the company facing penalties for inadequate pre-loan assessments and poor management of outsourced collection agencies [8][9]. Group 3: Related Party Transactions and Risks - Chongqing Xinmeng is a wholly-owned subsidiary of Beijing Zhongguancun KJ Technology Co., which is the second-largest shareholder of Ma Shang Consumer Finance, creating a complex relationship that raises questions about compliance and governance [9][10]. - The intertwined ownership and management structures between Ma Shang and its collection agencies may lead to non-transparent practices, including potential profit transfers and tax evasion [10][11]. - Despite significant investments in compliance and technology for collection processes, the effectiveness remains questionable due to the reliance on related parties for collection services [10].