Angry students in China submit nude photos for money loans

KOMPAS.com – Hundreds of female students in China are forced to take naked selfies, as a guarantee to pay their debts to usurers. Local media, China Youth Daily proclaims that there are 167 bad photos and intimate videos containing students aged 19 to 23 years old.

At least 10 GB of similar data is disseminated online, along with contacts and addresses of victims. The scandal unveiled the operation of "underground bank" which is widely used by the Chinese facilitated by Internet technology.

Many students, workers and residents of remote areas have credit histories in the central bank referral center, a banking system that records citizens' credit information and can be accessed online by the public.

If they are registered in the system, they can not borrow money from banks or traditional financial institutions. It is estimated that more than 500 million Chinese belong to this group.

They are easy targets for loan platforms peer to peer, or a method of borrowing money badociating borrowers and lenders online. The loan sharks' platform generally has a low risk awareness and sets a very high interest rate.

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Students who do not have collateral badets are the main consumers of online credit who can easily disburse funds within hours by simply completing certain forms.

"I got 5,000 yuan (about 10.3 million RPDs) in the form of a loan requested in just under three minutes after sending my bad photos and videos to me." "Borrower", I am one of the victims.

The interest charged for these loans is 27% per month. If they do not repay the loan, it will usually be treated outside the law, which will certainly be more prejudicial.

Unfortunately, the refusal of banks and traditional financial institutions on the grounds of "quality clients" is often the main reason they chose loan sharks, because of urgent cash requirements and lack of collateral.

Similar cases had also become the main subject of the Chinese media, especially with regard to unscrupulous usurers, financial pressures on students, and whether women had the right to submit their photographs.

reported KompasTekno of Morning of South ChinaOn Thursday (29.11.2018), badysts observed that this points to growing consumerism in China, an underdeveloped financial system and a poor student loan system.

Ping An Bank reports that the average annual growth rate of consumer loans in China, with the exception of pawnbrokers, is 28%. The growing demand for loans can not be satisfied by established banks and credit companies.

Some badysts say it encourages people who need money to borrow money from family, friends, loan services peer to peer and borrow money online.

Zhang Jun, Chief Executive Loan Officer peer to peer China, Pai Pai Dai, said there were nearly 500 million people in China who do not have credit cards and affordable credit cards with traditional financial services.