Loan sharks designing debt traps disguised as legitimate lending

Many victims of a new form of debt trap designed by loan sharks who lend money at exorbitant interest rates with the aim of taking possession of their targets' residences, can look to Zhang Chen, a 45-year-old policeman in Shanghai, for help.

Zhang, who has been doing criminal investigations for more than 25 years, first identified such a trap in 2016 when a woman reported that she had borrowed 200,000 yuan ($29,500) from a financing company but was forced to pay 600,000 yuan on the second day after the due date, and later another 70,000 yuan to redeem her note.

But the preliminary investigation revealed signed contracts and bank statements - later determined to be forgeries - indicating that the victim had received 600,000 yuan, which made the case a civil one.