China's TikTok Floods America with Ads for Predatory Payday Loan Companies

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Advertisers on Chinese-owned TikTok are reportedly using underhanded tactics to promote payday loans that experts say could violate deceptive advertising laws.

Mikhail Svetlov/Getty Images One expert commented on the ads flooding the platform massively popular with teenagers, saying, “At best, these videos are designed to make you give up information that you shouldn’t that will result in more solicitations. At worst, this is a complete scam designed either to take your money or information for fraudulent purposes.

One TikTok ad from an account called Lavish Finances opens with a shot of the U.S. Capitol and the words “US Government Inflation Program 2022.” A voiceover states: “US government inflation program helps Americans get a loan, even with bad credit. You can get up to $50,000 just filling in a simple form.”

The ad cuts to a shot from the perspective of someone holding a stack of hundred-dollar bills and the voiceover states: “I’m using my money to cover my bills, get some gas for the rest of the year and cover my medical needs. Click the link below, fill in the form in as little as 60 seconds and see how much you can get. Thank me later.”

Lavish Finances claims that it forwards applicants’ information to lenders who respond with loan offers with annual interest rates of up to 35.99 percent over terms up to four years. If someone were to take out a loan under the site’s maximum terms of $50,000 paid back at 35.99 APR over four years they would ultimately be in debt for $137,000.

 

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