P2P platforms ordered to report defaulted borrowers

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Internet loans. Photo: iStock

The Internet Financial Risk Special Rectification Work Leading Group Office has issued a new guideline on peer to peer lending platforms, requesting them to report borrowers that have defaulted, The Paper reported.

According to the guideline, P2P online lending institutions have been experiencing frequent risks lately, and some borrowers have taken the opportunity to “maliciously evade debts” by not repaying their loans following the deadline.

The borrowers waited for the platforms to suffer from being short of money and being shut down. Such wrongdoing on a large scale intensifies the explosion risk of P2P lending platforms.

All levels of local Internet Financial Risk Rectification Office are ordered to submit the list of borrowers who have been involved in deliberate debt evasion.

The information should include the name of the borrower and the lending platform, the accumulated loan amount, the amount of the remaining arrears, the start date of the default, the collection situation, as well as whether the borrowers have been missing.

In the next stage, the National Rectification Office will work with the credit management department to input that information into the credit information system and the “Credit China” database, so as to constrain relevant defaulters.

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