Punishments include prohibiting the ability to rent a house, buy certain goods or – perhaps worst of all – not allowing "laolai" from taking certain forms of transport.
The network of high-speed railways and domestic flights have gone a long way to ease travelling across the country. They have transformed China from an unconquerable continent the size of Europe into a modern super state.
In a country that covers 10 million square kilometres, not having access to high-speed transport is a social death sentence.
Instead of taking a couple of hours by plane, or 12 by high-speed rail, the distance from Beijing to Chongquing becomes a 30 hour slog on the sleeper train known as the "green skin."
According to The South China Morning Post this is the only option for those classed by society as a "deadbeat."
This pariah class has mostly earned the title through debt or social misdemeanours. People having gained the title "deadbeat" are shunned by society to such an extent that phone companies will alert people that a call is coming from a social debtor before connecting them.
One such laolai told The Post the treatment was worse than being in jail, " because at least there's a limit to a prison sentence".
Given the name 'Mr Kong' in his interview by The Post, he lives in the outskirts of Beijing on little more than 500 yuan or $100 a month.
Even if he could afford a plane ticket, he would be prevented from flying.
According to the National Public Credit Information Centre, 17.5 million flights and 5.5 million high-speed train tickets that were denied sale to "discredited individuals" as of last year.
While the debtor's travel ban is still in place there is also a public 'no fly list' of over 160 people in a public 'name and shame' campaign.
As well as 'extreme debtors' the lists includes people have been accused of various travel related misdeeds such as smoking on a train, taking contraband through airports or causing a provocation while flying.
Considering the country's official population according to the World Bank is 1.386 billion, this is an incredibly small number.
In a country as large as China using travel restrictions as a form of social control would appear to be incredibly effective.
In their quest to clear their name the so called 'deadbeats' will do anything to pay back their debts. Ironically some are welcoming the move towards a system that allows individuals to offset their debts by social credit earning activities, such as volunteering or blood donation.
For many the punishments incurred for poor credit have weighted the system as to make it almost impossible to get out of the red.
Once on the list a social debtor will realistically never get off of it. Even if the debts are paid off, the record remains.