BEIJING (PingWest) – China’s state-run CCTV skewered a number of microfinance companies, accusing them of providing payday loans, on China’s annual event that unveil companies’ bad treatment to customers. These companies include, but not limited to, Rong 360, FE Loan Company, Qiantaitai, Shandao, etc.
These microfinance companies normally provide loans smaller than RMB 3,000 ($450), but requires customers to pay back in a short period of time along with a high interest and service fees. CCTV said these microfinance companies infringed customers’ legal rights by doing so.
Last year several tragedies happened due to some customers’ inability to pay back of loans.