A professor from the Economics Department of Shandong University encountered a loan scam with an annualized interest rate of 1080% when applying for a JD Gold Loan on the JD APP. He has not been able to complete an early repayment on the JD platform.
Professor Jiang Shuguang from the Economics Department of Shandong University told Caixin Media (WeNews) on April 21 that while writing an article on internet loan practices, he applied for a JD Gold Loan under JD Finance on the JD APP. Professor Jiang originally intended to stop before the final disbursement but before he could click “Agree,” the loan was issued and interest started accruing.
Initially applying for a loan with JD Gold, Professor Jiang received a loan labeled as “Borrowing for Pinduoduo” with an annual interest rate of 24%. The lender disbursed 108,000 yuan to him. When he tried to repay the loan immediately upon disbursement, he was asked to not only repay the principal but also an additional 3240 yuan in interest. Based on calculations, this translates to a daily interest rate of 3% and an annualized interest rate of 1080% (3%*360), and he still cannot perform early repayment on the JD platform.
Reports indicate that Mr. Jiang’s experience is not unique as many users have similarly received loans from platforms like Pinduoduo even though they applied for loans specifically with JD Gold, with stated annual interest rates around 24%, but the actual annualized interest rates upon early repayment far exceed 100%.
JD Gold, a product under JD Finance, is a cash loan platform with a maximum borrowing limit of 200,000 yuan, operated by Chongqing JD Shengji Small Loans Co., Ltd.
Public data shows that JD is a self-operated e-commerce enterprise in China, with subsidiaries including JD Mall, JD Finance, Pinduoduo, JD Intelligence, O2O, and overseas divisions.
Following the release of this information, the topic sparked discussions on Tencent’s platform, with nearly three hundred netizens expressing their views.
User “Ra_Y” stated: “This is normal, other platforms do the same, refusing early repayment. Many members are forced into it, charged fees without consent. This is not an annual fee but a monthly fee deducted within the credit limit. It took me several months to realize, and upon inquiry with customer service, they claimed I activated it myself in the app, which I didn’t. This membership does not offer any help with loans, just speeds up the process, so why bother!”
Many netizens expressed dissatisfaction with the current online loan situation. User “青墨” said: “What was once condemned as ‘usury’ has now been legalized through capital integration.”
User “閒士–文明” added: “The evils of online finance, legal robbery! Do not fall for it, or it will lead to financial ruin and disaster!”
Some netizens believe this is due to lax supervision from the Chinese authorities.
User 1489581 on Tencent commented: “The authorities are complicit in allowing these loans, all in cahoots, aiming to maximize profits.”
The term “loan scam” refers to illegal activities aimed at unlawfully acquiring assets under the guise of private borrowing, where victims (borrowers) are induced or forced to sign loan agreements, creating inflated debts and defaults, and the perpetrators use violence, threats, and other means to seize victims’ assets. The essence of a “loan scam” is a fraudulent scheme disguised as private borrowing.