Shocking! In China, women using nude photos as collateral for loans

Los Angeles : In a shocking leak, a Chinese lending online service is using hundreds of photos and videos of naked women as collateral for easy loans. The issue has highlighted regulatory problems in the marketplace.

According to reports, the details were exposed on internet after a 10-gigabyte file was posted exposing the personal details of more than 160 young women.

These women were asked to provide the explicit material to secure money through online lending platform Jiedaibao.

The online platform has been launched by JD Capital in 2015thus allowing lenders to operate anonymously but requires borrowers to reveal their real names when making transactions.

They also customize Loan amounts and interest according to users who had in past hard time accessing loans through more traditional financial institutions, like banks.

As per media reports, interest on the "nude loans" reached an astonishing 30 percent a week.

Other shocking discovery was made that if the female borrowers were unable to pay loans their nude photos were sent to their families and friends, whose information was also required for some transactions.

However, an official statement was made by Jiedaibao saying that it had tracked down the accounts of several borrowers through photos and ID information circulated online and had frozen the suspected lenders' accounts.

The statement read: "The 'nude loans' deals were mainly initiated and completed offline, and Jiedaibao only played the role of a money transfer platform in the deals."

 

However, this is not the first time anything of such capacity has happened. In a similar instance, Alipay, the payment platform of Chinese e-commerce giant Alibaba, was criticised after a set of photos showing female users in seductive poses was leaked on social media.