Chinese Authorities Investigate 1890 Organised “Taolu” Loan Cases, Seize 16.176B Yuan in Assets

20

China’s public security authorities have launched investigations into nearly 1900 organised “taolu” loan cases, following a nationwide crackdown on predatory lending.

The Ministry of Public Security announced that following a nationwide crackdown a total of 1890 organised taolu loan cases have been investigated, leading to the apprehension of 18,651 suspects and the seizure of 16.176 billion yuan in assets.

The Chinese authorities de­fine “taolu loans” (套路贷) as crim­i­nal ac­tiv­ity which has the goal of the il­le­gal ac­qui­si­tion of the as­sets of vic­tims, by in­duc­ing them to sign lend­ing, pledg­ing or guar­an­tee agree­ments be­fore in­flat­ing loan amounts or ma­li­ciously fab­ri­cat­ing con­trac­tual breach events in or­der to cre­ate “false debts.”

The “Opin­ions Con­cern­ing Sev­eral Prob­lems in Re­la­tion to the Han­dling of Taolu Loan Crim­i­nal Cases” (关于办理“套路贷”刑事案件若干问题的意见) launched on 9 April 2019 dis­tin­guish taolu loans from pri­vate lend­ing, whose prin­ci­pal and law­ful in­ter­est pay­ments are sub­ject to the pro­tec­tion of Chi­nese law. 

The Ministry of Public Security said that it would continue to step up its crackdown on taolu lending, focusing in particular on the use of illegal credit apps and illegal online lending platforms

Related stories

Bei­jing Promises Harsh Pun­ish­ment for “Taolu” Loans Tar­get­ing the El­derly via On­line Plat­forms

LEAVE A REPLY

Please enter your comment!
Please enter your name here