How a Chinese P2P lending platform use nudes as collateral..

Crazy bit of news.

 

Shylock demanded a pound of flesh if loan was not repaid and today’s banks/lenders use force to get back their loans. Shame has also been used as a collateral in the past where those who do not pay back the loan are not seen kindly in the society. But now a Chinese lender is using different kind of shame to get back its loans:

Many Chinese university students were found to have used their nude pictures as IOUs onsome online lending platforms, putting themselves at the risks of having everybody –including their parents – see them naked.

Such risky methods of IOU is found usable on several online lending platforms, but it is usually more often accepted within the QQ group chats connected to such platforms.Borrowers are also required to upload pictures of their ID cards and report their family information, including their address and cell phone numbers.

Once a clear photo of a naked borrower holding his or her ID card is uploaded to lenders,he or she can get up to 15,000 yuan ($2,277) credit with a maximum of 36 month installments, the Nandu Daily reported. The credit varies based on the borrower’s education background. Usually an undergraduate student can receive 15,000 yuan in credit, while those studying at famous universities as well as doctorate students can receive even larger loans.

What comes with the seemingly easy business transaction is costly overdue repayment.

According to a self-claimed former borrower Li Li (pseudonym), the weekly interest ratewas 30 percent for her 500 yuan borrowed from an online platform in February. As she kept failing to pay back on set payment due dates, she borrowed more money from the platform with the same weekly interest rate until the overdue payment grew to 55,000 yuan, which then led to a threat with her naked pictures, the Nandu Daily reported.

Not sure how to react to such developments..

 

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