Payday Lender Demands Nude Selfies as Collateral for Naked Loan Services

Let’s just hope more payday lenders don’t adopt the practices of the Far East Credit Company.

Allegedly lenders in China was requesting nude pictures of female borrowers as collateral.

A leak of images “exposed” 167 borrowers so far.

The loans apparently began through Jiedaibao, a peer-to-peer lending platform in China. The request for nudes as collateral on Jiedaibao had been reported earlier in the year. The pictures had just not emerged until now.

One of the notes shown in a photo says “I (name redacted) owe the Far East Credit Company 2,000 yuan. The interest for two months will be double the initial amount of the loan. My photos and videos will be collateral. If the loan is not repaid, this IOU photo will be legally binding,” one of the notes reads.

In exchange, the students who agree to send nude photos can have a higher loan amount, ranging from 2 to five times as much. However, the loan interest rate can be as high as 30 percent a week. In a number of other cases, when a student cannot pay off their loan, the loan agents even asked for sex services. – Source

Jiedaibo was in the news as well in 2016 for “Uber-style debt collecting services in China by giving the public access to debtors’ personal data,” says the South China Morning Post. To become an independent debt collector and earn a commission up to 40 percent of the money recovered the wannabe debt collector needed to upload their photo ID and picture. “After a “verification” process of about a week, successful applicants gain access to overdue borrowers’ phone numbers, addresses and even ID numbers.”

Can you imagine if we let a system like that loose in the United States?

One source says, “Those young and beautiful, loan sharks are willing to lend 20,000. If they are ugly, they can only borrow 800.”

As a form of collateral, it is certainly an item to attempt to leverage the borrower with.

Vice says, “If the repayments aren’t made on time, the money lenders threaten to leak those selfies to the individual’s family and friends. Many also charge interest on the original loan, thus burying their victims further in debt and forcing them to send more pictures and videos. These kinds of transactions are known in China as “naked loan services.”

Steve Rhode
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This article by Steve Rhode first appeared on Get Out of Debt Guy and was distributed by the Personal Finance Syndication Network.

The post Payday Lender Demands Nude Selfies as Collateral for Naked Loan Services appeared first on Personal Finance Syndication Network.

About Damon Day

As a Debt Coach and a Financial Advocate, I have saved my clients Millions of Dollars by exposing the debt relief scams that other consumers fall victim to. I work directly for my clients to create custom debt relief strategies based on their own unique circumstances. Consumers who speak with me first, come out far ahead of those who don't, every single time. Guaranteed. +Damon Day