It has always been controversial, but due to inadequate regulatory measures, a large number of illegal online lending platforms have sprung up in a short period of time.
Many usury companies saw the business opportunities, coupled with the reputation of well-behaved online finance, secretly moved usury products that could not be on the table online, tempting a large number of young people to spend in advance, poisoning many young people with weak financial crisis.
These online lending platforms advertise in the name of inclusive finance and consumer finance, and increase the comprehensive interest cost of borrowers in the name of handling fees and membership fees. As we all know, the state only protects the interest with an annual interest rate of 24%, and the interest with an annual interest rate exceeding 36% is not recognized by the state, which means it is illegal. However, due to the short cycle, the annual interest rates of these online lending platforms basically exceed 100%, and even some online lending platforms exceed 1000%.
High interest and handling fees are unbearable for young people with limited income. Under the pressure of collectors and online lending platforms, one after another, loans are raised by loans, and new loans are used to repay old ones, resulting in more and more borrowers' debts and falling into the quagmire of online lending. In the face of violent collection, many borrowers are forced to accept it, but this practice undoubtedly encourages the bad collection atmosphere and makes the collectors worse. Some obtain the personal privacy information of the parties through illegal means, intimidate and panic, and even make some young people who mistakenly enter online loans pay the price of their lives.
Therefore, it is necessary to rectify and standardize the online lending platform, and it is also one of the means to maintain the normal online financial order.