Recently, illegal loan intermediary information under the banner of "debt restructuring" and "debt optimization" has appeared on social media platforms, inducing consumers to "borrow new to repay old" or apply for high interest bridge financing. In response, the Financial Consumer Rights Protection Bureau of the State Administration of Financial Supervision and Administration issued a risk warning on December 24th, stating that the so-called "restructuring" and "optimization" not only conceal risks such as high fee traps and personal information leakage, but may also be lured into committing criminal acts such as fraud and violating the law. The State Administration for Financial Regulation reminds the general public to be vigilant against illegal intermediaries, recognize the essence of "debt restructuring" and the hidden risks behind it, and prevent the infringement of legitimate rights and interests. The risk warning states that there are mainly two types of intermediary activities for such "debt restructuring" loans: first, borrowing new to repay old. Illegal loan intermediaries, under the guise of "debt optimization" and "helping to solve debt problems", recommend "unsecured credit loans" to consumers with high loan repayment pressure or overdue loans, assist in handling relevant procedures, and facilitate loan institutions to issue relevant loans for "replacing" consumers' original loans. Loan intermediaries charge high transaction fees based on consumer credit information. 2、 Provide high interest advances and charge 'beheading interest'. Illegal loan intermediaries, under the guise of helping consumers maintain good credit ratings, induce consumers to apply for advance payments from them, and then help consumers apply for loans to repay the advance payments. In this process, the intermediary agency first charges a considerable advance fee, and then charges a high service fee based on a certain proportion of the loan amount after facilitating the loan. The risk warning states that participating in the above-mentioned "debt restructuring" may bring the following risks to consumers: 1. Repayment pressure caused by high interest rates. Illegal intermediaries, in order to seek profits, often charge high fees such as service fees, handling fees, and bridge interest when inducing consumers to "repay loans" or use the bridge funds provided by them. The comprehensive cost of funds for consumers after "debt restructuring" is much higher than the interest rate level of normal bank loans, especially through the method of using intermediaries to advance and repay loans. They not only have to bear the advance fees, but also have to bear high service fees. If consumers do not have a stable source of funds, they may not only fail to truly alleviate debt pressure by borrowing new and repaying old loans, but also face greater repayment pressure by crossing bridges with high interest rates. 2、 The right to information security has been violated. When consumers choose illegal intermediaries to help with loans or provide advance payments, they need to provide important information such as identity information, account information, family member information, and property information to the other party. Some intermediaries, due to poor management or seeking illegal benefits, may cause consumers' personal information to be leaked or even sold, infringing on consumers' right to information security. 3、 Risk of breach of contract and illegal activities. The loan contract signed between consumers and banks will clearly stipulate the purpose of the loan. Both methods of "debt restructuring" involve "reverse lending". Consumers who fail to use the loan according to the contract will bear the liability for breach of contract, and may not only be required by the bank to repay the loan in advance, but also their personal credit will be affected. Especially if one cooperates with illegal intermediaries to apply for loans from banks by fabricating false reasons, using false proof materials, and other means to obtain loan qualifications, this behavior is suspected of defrauding bank loans, and consumers may even be held legally responsible. The State Administration for Financial Regulation reminds the general public to be vigilant about the risks that may arise from illegal loan intermediaries inducing "debt restructuring" and to effectively enhance their awareness of prevention. If there is a need for financing, please consult with formal financial institutions such as banks, handle relevant procedures according to loan regulations, and protect your own rights and interests. 1、 Be alert to false advertising and inducement by illegal loan intermediaries. Fully understand the risks and hazards of illegal "reverse lending", be wary of illegal intermediaries concealing unfavorable information, false advertising and misleading that only talks about tempting conditions, and do not blindly believe in loan intermediary information such as "debt restructuring", "debt optimization", "mortgage free guarantee" pushed by unfamiliar channels such as phone calls, text messages, advertising flyers, social media, etc., to avoid falling into related traps. 2、 Choose a legitimate financial institution to handle business. Illegal loan intermediaries are not licensed financial institutions that have obtained financial licenses in accordance with the law. Their intermediary activities mainly involve understanding loan needs, preparing materials, and applying for loans, rather than being parties to loan contracts. It is recommended that consumers evaluate their income level and consumption ability reasonably, plan their income and expenses, obtain financial services through formal financial institutions and channels, and actively apply for non repayable loan renewals if they meet the conditions. They should use the loan for the agreed purpose, avoid using it for other purposes, avoid breach of contract liability, affect personal credit, and even bear criminal responsibility. If you have any questions about the relevant business, you can consult and verify through hotlines published on the official websites of financial institutions. 3、 Pay attention to protecting personal information security. Properly keep personal identification documents, bank cards, financial accounts, etc., and do not easily entrust others to handle relevant procedures on your behalf, to avoid personal information leakage or illegal use, buying and selling, and to prevent personal property losses. If you find that your legitimate rights and interests have been infringed upon, please pay attention to preserving relevant evidence and report to the public security organs in a timely manner. (New Society)