Dodgy internet lenders in China are reportedly getting female college students to provide nude pictures of themselves as collateral in a loan-for-porn scheme. In this creepy arrangement, reported by Chinese media this week, students have agreed to send nude photos of themselves holding their ids to lenders. After doing so, the girls are then eligible for higher loan amounts—two to five times the normal sum, according to Beijing Youth Daily. The lenders told the students that they'd publish the photos online if the loans aren't repaid in time, with extreme interest rates. The site's online leaders allegedly preyed on young people who may be out of pocket or lacking in financial experience. Within four months, the debt she owed had more than doubled.
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Wuhan University has recently developed a phone application aimed at preventing online loan schemes from preying on college students, according to news portal cjn. Online campus loans are private loans targeting college students, usually coming with high interest rates and often with collateral security requirements, which in some cases have included naked photographs of female students. Many young people are attracted to these loans due to a lack of basic financial literacy to see potential risks behind what appears to be easy money. Central authorities banned online companies from extending loans to students in
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China has banned online loans to college students following a three-year boom in campus lending, which has been accompanied by outrage over exorbitant rates, violent debt collection practices, porn for payment, and various financial scams. Financial institutions not registered or authorized by regulators are now banned from offering loans on campus, said a recent notice by China's Banking Regulatory Commission, the Ministry of Education, and the Ministry of Human Resources and Social Security. The notice said existing online lenders must withdraw from the market.
Under the arrangement reported by state media this week, some college students have agreed to send photos of themselves naked, holding their identification cards, to potential lenders. In exchange, they became eligible for higher loan amounts — two to five times the normal sum, the state-run Beijing Youth Daily reported. Lenders tell the students they will publish the photos online if the loans are not repaid on time, often at usurious interest rates. Jiedaibao is a platform where individuals - often friends and acquaintances — can lend or borrow money, striking their own arrangements.