Several hundreds of videos and photos of naked women used as collateral for loans on a online lending service in China have leaked onto the web, showing problems related to regulations in the fast-growing marketplace. A file which was posted on the online exposed the personal details of several young women who were asked to provide explicit material to secure money through Jiedaibao, an online lending platform.
Jiedaibao, which was launched by JD Capital last year, allows lenders to operate secretly but requires borrowers to give their real names while making transactions, an AFP report has said. Interest rates and loan amounts can be modified to meet the needs of users, most often then not people who have a tough time accessing loans through more traditional financial institutions, like banks.
As per the Global Times newspaper, interest on “nude loans” reached an astonishing 30 percent a week. Lenders have told female borrowers that if they failed to repay loans, their naked photos would be sent to their kins and friends, whose information was also required for some transactions, the article added.
In a statement on Weibo account, Jiedaibao said it had tracked down accounts of several borrowers through ID information and photos circulated online and had closed the suspected lenders’ accounts. “The ‘nude loans’ deals were mainly initiated and completed offline, and Jiedaibao only played the role of a money transfer platform in the deals,” the statement said.