|Nude woman (illustration)|
Jiedaibao, which is a platform where individuals can lend or borrow money from one another, is under investigation after lenders have offered higher loan amounts to young women who gave them nude photos of themselves as collateral.
JD Capital, which is the company that owns the platform in China, announced that they are looking into the matter and will suspend any lender that engages in such practices.
Some college students have agreed to send nude pictures of themselves, holding their ID cards to potential lenders. In return, they became eligible for loans up to five times the regular amount.
Lenders tell students that they will post the pictures online if loans are often not paid on time.
Lin Xiao said that when she wanted to start a small business, she agreed to hand over nude photos to private lenders in exchange for $18,200.
After four months, the total amount owed rose to $36,000.
After being threatened by lenders, she had to ask her family for money to keep her nude photos off the Internet.