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China's 51 Credit Card confirms police investigation related to debt collection

Hong Kong-listed 51 Credit Card Inc. said the Chinese police on Oct. 21 inspected the company's office in Hangzhou for "alleged criminal behavior" by debt collection agencies assigned by the company.

51 Credit Card, which matches borrowers and lenders for small loans on a mobile platform, said in an Oct. 22 release it fully cooperated with the investigation, and also clarified that its personal data collection has been conducted with legal user authorization.

The company's Hong Kong-listed shares resumed trading on Oct. 22 after being suspended on the previous day.

The South China Morning Post reported Oct. 22 that the credit card management company is understood to have hired external debt collectors to pose as government officials to threaten borrowers.