Micro credits strongly influenced consumers’ psychology. You really need a new iPhone, but your savings are not enough? Just break the price tag into several small payments. Always wanted to bubbly bathe in your own jacuzzi, but the salary never allowed? A series of small monthly payments will let you pay this luxury in 60 years.
Such advertisements are pretty common nowadays driving gullible buyers closer to their dream. But the Chinese lenders have gone further.
According to Vice, the latest research by the financial company Ant Financial, states that 45 million out of 170 million young Chinese (1990+) have accounts in the Ant Check Later—an application for microloans. It is interesting that they use the service not only for large purchases (household appliances or automobiles) but also borrow money for inexpensive everyday things.
In a country where the cost of living is high and the chances of getting a credit card are relatively low, this new form of e-commerce has become very popular. However, credit systems always have their dark side attached.
Some lenders will easily give money, but first, you may have to send them some photos where you are pictured nude. If the loan is not promptly repaid, lenders will begin to threaten to acquaint the relatives and employees of the debtor with the “compromising evidence”.
Such transactions in China have long been known under the name “naked loan services".
According to the China Youth Daily, in 2016, attention to this credit system was attracted by a large-scale intimate photos leak of 161 girls (mostly from 19 up to 23 years old), who held ID cards in front of them. Most victims, as a rule, borrowed sums in the amount of $1,000 to $2,000. According to the publication, some of them were offered to pay off their debts in the sex services market.
According to Reuters, in 2017, financial regulators drew the attention of the growing problem of this type of lendings and introduced new rules to tighten the licensing of such financial institutions. However, Chinese media reported that the problem of "naked loans" is still relevant on social media.
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