Consumer association urges criminal investigation over Coolqi deposit scandal

The China Consumers Association (CCA) has alleged that the now bankrupt bike sharing company Coolqi and its chief executive are involved in criminal activity, and has lodged a complaint with the police, reports People's Daily.

Criminal charges faced by the company may include embezzlement, said the CCA. 

A row of Coolqi Bikes sit deserted on a street in Zhengzhou, capital of Henan Province, November 30, 2017. [File Photo: VCG]

The move to lodge a criminal complaint against the company follows attempt by CCA to urge Coolqi to return hundreds of millions of yuan in users' deposits.

In August 2017, complaints about Coolqi Bike's failure to refund users' deposits attracted public attention. The company was later accused of shutting down its channels for the refunding of deposits, and setting up a fake refunding site to mislead users.

Since March, CCA has tried three times to hold talks with Coolqi regarding the return of user deposits, however their requests have gone unanswered. 

On December 12, CCA issued an open letter, urging Coolqi to refund its users' deposits, apologize to the public, and take legal responsibility for its behavior. 

So far, Coolqi has offered no response to the letter.

In an announcement published on their official website on December 21, 2017, the CCA vowed to cooperate with the police on future investigations and prosecutions.