Search Engine Baidu Recent Crackdown on Fraudulent P2P Lending Sites.
China’s search giant Baidu, has recently made a move on removing links that contain over 800 Chinese peer-to-peer lending websites from its search results, according to a report done by China’s new Business Daily.
This newly created blacklist comes after a long list of fraudulent sites went down under and got away with the lender’s money, which includes one just last week. Over 100 similar sites have either vanished or went bust during the past couple years, with an estimated US$11o million lost under half a year.
NBD has estimated that China currently contains over 2,000 P2P lending sites. The trend increase astronomically since’s its original introduction during 2011 as a way for average people with out that much of a credit history to receive a small personal and business loans. The government has even encouraged P2P lending businesses to take up residence in its local tech district, promising perks such as lower rental fees and cash rewards. But regulators have left these services mostly untouched despite many experts advice, resulting on widespread fraud.
While the youthful industry has been a stroke of luck for many Chinese people in need of a quick loan, legitimate sites such as Wangdaizhijia, PPDai, Dainrong, and Renrendai are being drowned out by the huge amounts of scammers and confused newcomers looking for ways to make a quick buck.
In NBD’s report, Baidu stated that it will be working alongside authorities, insurance companies, and the payment clearing association to come up with a list of reputable lending sites. It has reportedly removed both sponsored and non-sponsored P2P lending sites from its search results for the current moment, but a huge amount of them are still currently active.
Baidu’s recent smack down comes during a conveniently on the heels launching of its very own lending services. The company has rebranded its financial arm during the previous week, including persona loans into the combination.