It's super creepy and the interest rates are outrageous; but you have to give it to them, public shaming as a collateral is good "outside the box" thinking.
I really hope this is not the case, but I fear we might see a follow-up on this article discussing suicides connected to these kinds of loans.
I mean, you get this loan for education. Then you get sick or something and can't pay it back. Suddenly they are threatening to send that same picture to your parents and your workplace with the note that it is your penalty for not paying your student loans on time.
And the truth is that I could explain it to my mother. My brother? Yeah, that's going to be an awkward conversation but I'd get over it. A discussion on this with a male boss (I'm female)? Yeah, that's going to be uncomfortable for some time.
vs
Someone installed a hidden camera in your house, and tried to exhort you for money with videos of you showering
In both cases I can somewhat make the embarrassment minimal by just being upfront with folks.
In the case of debt, however, the reason for the pictures is because I didn't pay the debt. It doesn't matter if it was preventable or accidental, i'm still the guilty party. Not only do you have the photos, but you have outsiders knowing your financial affairs. Nothing can be done if you don't have money.
In your example, someone had to install that camera without permission then come forward to try to get money. I could call the police. I could forewarn folks about getting such an email. I have options. Not only that, but people are more likely to see that I've been victimized in some respect.
Granted, I'm not for the naked photo bribery method of collecting debt, but it still is different situations.
To be fair, though, in some cultures the shame really is with the nakedness. To a lesser extent, that extends to different regions of the US or different sorts of families.
Edit: Some of the reaction with the nudity - for a supervisor at work - is that if I was the supervisor getting that picture, I'd never forget the look of them naked. Whatever I did see. And so I imagine it is about the same for other people.
First thing I thought of (ala another comment) is that those openly engaged in the nudist lifestyle for instance might not give two flips about nude photo "collateral". To be honest, I can imagine other individuals (lifestyle or not) in at least the US would have a similar attitude. I cannot say as much about other cultures but I have a hunch the same applies to many Western nations.
So, if you're in a position where you give no flips about a nude photo, you have every incentive to take the money and run. Doubly so in fact for taking advantage of what IMHO is kind of a creepy sounding scheme.
The article makes a statement of both men and women of college age can do this, but only provides examples of women BTW.
The interesting thing is that the U.S. dollar actually went down this year, so they had an even bigger interest rate in US dollars.
Of course, there are periodic crises where lenders are wiped out (latest in 2002), and that "justifies" the predatory interest rates :( . But lending is huge here and it has made a lot of people rich.
I really hope P2P lending takes off, a few startups are working on it here.
The article mentions 30% weekly interest rates. That would compound quickly and overtake 40-50% annual rates pretty easily.
10,000 yuan borrowed on an annual interest rate of 24 percent within a week.
Even the greediest moneylenders here rarely go beyond 10% weekly.
Really?
I wonder how you'd see it if it was one of your offspring somehow getting caught up with such a bunch of loan sharks. Or it's their dodgy partner using their photos etc to get an easy few $$$.
It's easy to say they wouldn't be so naive? Of my own offspring, they've all had their moments of teen stupidity. Fortunately nothing that's played out online or risked long term consequence. Yet. :)
If they have confidence they might brush off everyone on campus knowing and seeing simply as a badge of honour. A more introvert, shy, personality or having the "blessing" of good religious and so often judgemental relatives might have their entire uni experience ruined, or worse. In a culture where sense honour and shame are far stronger.
For the "wrong" personality or circumstance it's easily far more damaging than a traditional good kicking from the loan shark's heavies. Perhaps takes far longer to heal too.