Money Lenders Asking For Nudes As Collateral
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While it is common for lenders to ask for title deeds as collateral for loans, some lenders in China asked for nudes as collateral, a service referred to as ‘naked loans’ in China.
This however does not mean full exchange for the loan. The borrower still has to pay for their loans.
In an event that a customer fails to make repayments on time, the lenders threaten to leak their nudes to individual’s friends and family . Additionally, in instances where interest is charged, victims definitely owe much more to the lender forcing them to send more pictures and videos.
A total of 10 gigabits of nudes from 161 young women aged between 19 and 23 holding their photo IDs, were leaked online by micro-lenders in 2016.
According to China Youth Daily, most of them had borrowed money between $1,000 and $2,000.
Others reportedly had the option of doing sex work in order to pay off their loan.
According to Reuters report, this habit forced China’s financial regulators to crack down on unlicensed micro-lenders.
Since then, new rules were introduced forbidding unlicensed organizations and individuals from conducting a lending business although local media reports still indicate that the problem is common on social media.
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