Caveat emptor, Legal Regulations Do Not Apply
It must be ok, Al Gore has invested
By the time 2015 arrives, China is predicted to hold the predominant position of power on the world wide web.
In China today, small business loans are almost unheard of. Online businesses in China are borrowing money at a furious rate by linking up private lenders with private businesses in Peer 2 Peer networks.
“How a loan is made is not legally regulated. A bank or an individual can make a credit or a collateral loan. No problem.” CreditEase CEO, Tang Ning
While bank regulators warn that many of the Peer 2 Peer sites have turned out to be finance farms, certain companies such as CreditEase; funded in part by investements from Al Gore, are running legitimate financing operations. Tang Ning, CEO of CreditEase believes his company is filling a crucial gap in the financial marketplace. PaiPaiDai, another one of the better known P2P sites wants more regulations. PaiPaiDai requires borrowers to upload all their personal information but they feel this is just the beginning.
PaiPaiDai lender, Zhoue Yongxin has lent over $60,000.00 in US Dollars through the system. He says he has only lost 1% of that investment and feels greater regulations need to be placed on the industry.