The “luodai”, private loans to young girls in China with intimate photos and videos as endorsement

A new scandal has stormed the networks in China: the “luodai”, name that receives the extortion of some private lenders on young women who contribute intimate photos and videos to be able to access credits that they can not get in conventional financial institutions.

In case they can not cope with the debt, those affected can see how these images are published on the Internet or sent directly to their nearby circles , and even the local media publish cases in which prostitution has ended up becoming their means of payment.

An investigation of the Chinese Youth Journal ensures that 10 gigabytes of intimate photos and videos of 167 women have been leaked, mostly between 19 and 23 years, along with the contact details of the girls and the addresses of their relatives.

“Luodai” in Chinese means “naked loan” and initially the expression was used for a credit without a physical endorsement (like housing or car), although with this practice it has gained a much more literal meaning.

The average amount they usually request varies between 2,000 and 6,000 yuan (270-800 euros) Students who do not have assets with which to guarantee the loans they need for college or stable sources of income are the main victims of these cases.

Although most of the girls need help to pay for their studies, there have also been cases in which they wanted the money to travel, buy cosmetics or electronic devices .

“I have been with my friend to take a trip, my friend is rich and I do not want her to think I am poor, ” explains one of the victims in a social network about the reasons for requesting the loan.

The average amount they usually request varies between 2,000 and 6,000 yuan (270-800 euros), and they accept abusive interests that can reach 30 or 35% per week.

Some of the usurers subordinate the amounts loaned and the interest rates to factors such as the physical appearance of the applicant or even if she is a virgin.

Payments in meat

These exorbitant rates cause some of the girls who can not cope with the debt incurred are forced to resort to what the usurers refer directly as “payment in the flesh” and forced to have sexual relations with their creditors or with third parties .

In one of the cases that have been made public, a woman who could not liquidate the 2,000 yuan claimed by her lender had to spend four nights with strangers as a form of payment.

Usurers not only claim photos and videos as collateral, but they fill out exhaustive forms that include an abusive amount of personal data, including your address, place of work or studies, social media accounts or phone number, as well as references of parents or their teachers.

All these data then make young women prisoners of future blackmail or that their information is sold to third parties, for which there is even a secondary market for the purchase of photos and videos.

About 500 million Chinese, mainly students, rural and working class residents, can not access loans in traditional financial institutions , which do not consider them good clients.

All these data then make young women prisoners of future blackmail In fact, less than 5% of those affected by the “luodai” live in the largest Chinese cities, and most of them come from small and medium-sized cities , and even from areas rural

Online credit platforms have proliferated rapidly in recent years, and with them the number of unscrupulous lenders.

The growing consumerism of Chinese society, coupled with the poor development of financial services for much of society and the absence of an appropriate system of student loans are the main causes of the rise of virtual usureros .

One of the main platforms dedicated to digital credits, Jiedaibao , was forced to issue a statement last week on its official Weibo account – the Chinese equivalent of Twitter – distancing itself from the scandal.

This portal, used by some of the lenders for loans of this nature, attributed to “a small number of desperate users who resorted to private transactions with shady moneylenders ,” the official newspaper Global Times reports .

It is not the first time that one of these platforms is involved in legal problems , and the most famous case erupted last February when China dismantled a fraudulent network linked to the Ezubao portal, which handled 50,000 million yuan (about 7,000 million euros) ) obtained by pyramid schemes.