Emerging Crisis: Professional Debtors Exploit Bank Loopholes in China

[NewTangDynastyNewsàmBeijing19Giblean2024]In recent years, a secret group of “professional debtors” has emerged in China. They use the Bank of China’s credit loopholes to cheat large bank loans, leading to huge losses for the bank and ultimately leaving the Chinese taxpayers to foot the bill.

“Professional debtors” are also known as “laolai”. for others, becoming a professional lender.

Professional lenders are largely based in the real estate industry. This kind of profession can let you eat and drink for free, and you can also get a free house, and you can earn a million yuan in cash income within half a year of yuan in debt mortgage for life, and being blacklisted by the bank for dishonesty.

Author Ye Xiao wrote an article in the Epoch Times on April 19, indicating that this type of profession has now created a black business chain in mainland China. “For example, if you are very short of money and contact a black group of professional creditors, they will take you to a second- and third-tier city, stay in a hotel, and take care your food and drink. You just have to do that. Bring your bank card and ID card, your bank card will continue to receive money.”

Their special way of operation is if they say a real estate is 5 million yuan (RMB, the same thing below), the intermediary will buy it in your name, pay you a down payment of 1.5 million yuan, and handles many loan agreements through the bank The required social security certificate, investment information, income stream information and other certification materials were reviewed by the bank’s credit department and a mortgage of 3.5 million yuan to release, which relieved the real estate developer.

After that, you can apply for various loans on the property, such as second mortgage, renovation loans, etc., a total of 6 million Yuan After staying in a hotel for about half a year, and all done, you can finally get 1.5 million to 2 million yuan. For the second mortgage of 6 million yuan, the intermediaries, professional creditors, and entrants in the CCP system share the damages according to the pre-agreed proportions.

Loan fraud is largely committed by professional debt collectors. debt piles.

The last way to deal with bad bank debt is to use the government’s various ways to remove bad bank debt, but of course, taxpayers in China foot the bill, which it is also a threat to bank depositors and financial users.

Just as depositors’ deposits disappear in rural banks in Henan, if something goes wrong, the CCP government and the banks completely abdicate responsibility, and instead shift the responsibility to inadequate financial management the investors themselves.

Because the number of people in China whose monthly income is less than 2,000 yuan is as high as 964 million. As soon as something changes in their family, these people have no savings and no ability to cope with So, black middlemen and bank robbers smell the business opportunities and take advantage on the loopholes in the CCP system to recruit a large number of people at the bottom. who are in dire need of money or don’t care about credit reporting to engage in fraud, creating a black business.

It is said that in some remote areas of China, every village has become a professional debtor, and some rural areas have become a village of professional debtors .

Although the price of being in debt is not being able to take high-speed trains, planes, and shopping restrictions, and carrying millions or even tens of millions of mortgage debt for a lifetime, and eventually the blacklisted by the bank to be. unreliable, because you can make money quickly, it can solve your family’s urgent needs. In order not to affect the future of their children, some simply divorce their spouses.

Once you are a professional debtor, it is almost impossible to clear your name. Only a very small number of people with “supernatural powers” can use their connections with the public security system and the civil affairs department to cancel their house registration in the name of death, and the then get a legal home registration, change their name, and “restart their lives” in order to be cleansed.

As a professional debtor who is forced to go to prison at the bottom, there is another danger If you encounter shady intermediaries and bank robbers, the professional debtor will not only be plagued with lifelong debt, he may not get the money or just get it. A little money is not available.

(Editor: Wen Bin)