Chinese Fintech Investigated for Fake Government Threats

Chinese fintech firm 51 Credit Card is being investigated for threatening delinquent borrowers by pretending to be fake government officials.

The Hong Kong-listed credit card management app allegedly hired external debt collectors acting as government officials, according to an Hangzhou police statement, and is suspected of «picking quarrels and provoking troubles».

Complaints against the firm have been received by police since September and the firm confirmed earlier this week that an on-site investigation had been conducted by authorities.

Our lack of training and oversight on partner companies has led to some radical behaviors in the communication with our borrowers, and it hurt certain borrowers, chairman and chief executive Sun Haitao said. «We are very sorry about that.»

51 Credit Card noted in a statement that it was fully cooperating with the investigations and denied rumors that personal user data from the firm had leaked or been stolen. It also added that assets had not been frozen and that the firm had sufficient cash and assets to protect lenders and investors.

51 Credit Card was founded in 2012 and the platform today boasts 83 million registered users and the management of over 138 million credit cards, according to its September interim report.