Weidai.com.cn under investigation for illegal absorption of public deposits

The Shangcheng District Branch of the Hangzhou Municipal Public Security Bureau announced on July 4th that it has filed a case to investigate a Hangzhou-based P2P lending platform, Weidai (Hangzhou) Financial Information Service Co., Ltd., or Weidai.com.cn, for its suspected illegal absorption of public deposits.

The Shangcheng District Branch of the Hangzhou Municipal Public Security Bureau announced on July 4th that it has filed a case to investigate a Hangzhou-based P2P lending platform, Weidai (Hangzhou) Financial Information Service Co., Ltd., or Weidai.com.cn, for its suspected illegal absorption of public deposits.

The case is being investigated at present according to law.

The announcement also indicated that the public security bureau would do whatever they can to recover the lent money to protect the lawful rights and interests of the lenders. If a borrower maliciously evades debt repayment deliberately and is suspected of a crime, the public security authorities will pursue his or her legal responsibilities.

According to the public information, Weidai.com.cn was established in 2011 with car mortgage loans as its main business.

The operating entity of Weidai (Hangzhou) Financial Information Service Co., Ltd. has a registered capital of 128 million yuan.

In November 2018, the company was listed on the NYSE, and the ticker symbol is WEI.

On May 31, Weidai has announced that it would exit the online lending industry by June 30, 2020. As of February, 2020, the cumulative loan amount of Weidai.com.cn reached 298.6 billion yuan, with a loan balance of 8.6 billion yuan for 115,000 lenders, and a cumulative amount of loans per capita of 264,000 yuan.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/07/07/weidai-com-cn-under-investigation-for-illegal-absorption-of-public-deposits/.

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