Usury loans and other non-performing online loans will not cause interest increases, collections, etc.

1. Which online loans are considered non-performing online loans?

1. Concealing borrowing rates and fees: Some online loan platforms will deliberately generalize borrowing fees or conceal fees so that borrowers cannot truly understand the total borrowing fees and details;

2. Deposit-taking fraud: Some platforms that are not approved by the China Banking Regulatory Commission will "absorb deposits", "fund pools", etc. to conduct fraud and illegally misappropriate investors or borrowers' funds;

3. Pretend to use the name of a legitimate financial institution to act Fraud: Pretending to be banks, securities companies and other financial institutions to commit fraud;

4. Promotion of agent commission fraud: Some platforms will adopt a multi-level agency model and carry out commission-sharing plans for lower-level agents to encourage them to absorb more Users, thereby realizing the illegal behavior of recruiting loans in lieu of loans;

5. Opaque transaction rules: the transaction process is not disclosed, the transaction rules are not disclosed, etc., making borrowers and investors vulnerable to losses in transactions;

6. High-interest loan assistance: Some platforms deliberately increase the burden on borrowers and charge high loan service fees, overdue fees, etc.

2. What will happen if it doesn’t happen?

1. Interest rates are rising: Some online loan platforms have borrowers who fail to repay overdue payments. The loan principal and interest continue to accumulate, and the longer the arrears are, the less likely they are to repay;

2. Collection harassment: Some platforms use fraud and other means to collect collection, which seriously interferes with the life and work of borrowers and causes adverse social effects;

3. Judicial proceedings: If a borrower fails to repay overdue payments, judicial proceedings may arise. Facing legal investigation and processing.

3. How to avoid being affected by bad online loans?

1. Focus on online reviews: Understand the reviews and background information of online lending platforms through online searches.

2. Multi-channel understanding: Publicity and promotion through television, newspapers, magazines, radio and financial information service platforms certified by national websites.

3. Ensure legality: Choose a legal online loan platform to avoid being harmed by bad online loans.

4. Understand the terms of the contract: Before selecting an online loan platform and signing a contract, you should carefully read the terms of the contract to ensure your legitimate rights and interests.

4. How does government management prevent non-performing online loans?

1. Establish a regulatory system: The government should establish a regulatory system for the online lending industry, including regulations on the investigation and punishment of illegal fund absorption, private credit, illegal guarantees, usury and other illegal activities.

2. Crack down on criminals: The government should take comprehensive measures to suppress illegal activities and increase penalties in accordance with the law, such as cases of deposit absorption.

3. Improve financial laws and regulations: always pay attention to the Internet Financial development, improve the handling standards of default and breach of contract, improve legal liability, and prevent losses for all parties.