A man from Wuhan, Hubei, found himself trapped in a devastating cycle of predatory lending after a business loss left him 300,000 yuan in debt. Lured by promises of low-interest loans from intermediaries, his financial burden spiraled uncontrollably to a staggering 2.3 million yuan, ultimately driving him to attempt suicide by ingesting 50 sleeping pills. He was fortunately rescued by his family and rushed to the hospital in time.
Several years ago, Chen Gang, whose name has been changed for privacy, accrued a 300,000 yuan debt after his part-time business suffered losses. The enormous financial hole weighed heavily on his mind, leaving him constantly searching for ways to repay it. In February 2024, a man surnamed Liu contacted him, offering a low-interest loan to help settle his outstanding debts. After discovering that his own credit report contained overdue records, preventing him from borrowing directly from banks, Chen Gang followed Liu's instructions to secure a loan against his property, all in an effort to keep his financial troubles hidden from his family.
He first mortgaged his home to a pawnshop and obtained a 600,000 yuan loan. However, upon disbursement, the intermediaries and the pawnshop deducted nearly 200,000 yuan in handling fees, leaving Chen Gang with a significantly reduced amount. Chen Gang explained that he had been told the fees would only amount to a few tens of thousands of yuan, but after the pawnshop released the funds, they collected 170,000 to 180,000 yuan in fees. Despite realizing something was amiss, the deal was already done, and with his urgent need for cash, there was no turning back. As his debt grew, he became increasingly afraid to inform his family.
As the repayment deadline for the 600,000 yuan loan approached, Liu contacted him again, suggesting he find another intermediary to take out further loans to repay the existing debt. Chen Gang, feeling completely controlled and led by the nose, followed the advice once more. He then took out a 1.3 million yuan mortgage loan, this time paying 230,000 yuan in handling fees. His total debt had now escalated from the original 300,000 yuan to 1.3 million yuan, with the snowball continuing to grow larger.
As debts mounted and repayment became increasingly difficult, matters spiraled further out of control. In early 2025, intermediaries orchestrated yet another application for a 2.3 million yuan bank loan. Following their instructions, Chen Gang signed a transfer authorization agreement, allowing the loan proceeds to be deposited into the intermediary's account first. After repaying old debts and deducting various service fees, some of which were described as payments to "grease the wheels," Chen Gang received only 115,000 yuan. The intermediaries also forcibly deleted his chat records, destroying key evidence. Through these multiple rounds of borrowing, compounded by various fees and interest, his original 300,000 yuan shortfall had ballooned to 2.3 million yuan.
The immense debt pressure crushed Chen Gang, leading him to take the sleeping pills in an attempt to end his life. After being saved by his family, he finally revealed the whole story. His relatives brought his case to the media for help. Legal analysts suggest that the total service fees charged by the intermediaries in this case were excessively high. Even if agreements were made in advance, courts are unlikely to support amounts exceeding a reasonable range, and fees could potentially be re-evaluated based on the actual services provided. Given the methods used throughout the case, it may constitute a criminal offense, and it is recommended that the victim report the matter to the police. Chen Gang has now filed a police report and is cooperating with the investigation while gathering materials for a potential lawsuit.
This harrowing experience, where a business loss led to a debt trap that turned 300,000 yuan into 2.3 million yuan, serves as a stark warning. When facing financial difficulties, do not rely on "shortcuts," and always seek out legitimate financial institutions. If you are uncertain about a situation, communicate with your family and seek legal assistance promptly rather than bearing the burden alone.