Guan Cha Zhe Wang·2025-11-24 10:25Core Insights - The article highlights the compliance challenges faced by Weibo's lending service, Weibo Borrow, following the implementation of new regulations that cap annualized financing costs at 24% [1][14] - Complaints against Weibo Borrow have surged, with over 21,000 complaints reported on the Black Cat Complaints platform, indicating significant user dissatisfaction with high interest rates and aggressive collection practices [1][2] Group 1: Compliance and Regulatory Challenges - Weibo Borrow's interest rates have been reported to exceed the legal limit, with some borrowers experiencing effective rates as high as 36% [1][3] - The new regulations, effective from October 1, 2023, require that all financing costs be transparent and not exceed the 24% cap, which has intensified scrutiny on Weibo Borrow's practices [2][9] - The lending service is under pressure to comply with these regulations, as the industry faces a significant transformation due to stricter oversight and increased operational costs [2][14] Group 2: User Complaints and Hidden Fees - Users have reported hidden fees, such as membership and guarantee consultation fees, which contribute to the high overall financing costs [6][8] - Complaints also include aggressive collection tactics, with reports of harassment and unauthorized access to personal contacts, raising concerns about user privacy and data security [1][10] Group 3: Business Model and Operational Risks - Weibo Borrow's business model is at risk due to the intertwining of payment and credit services, which may lead to regulatory violations and operational inefficiencies [13] - The reliance on a large user base of 590 million monthly active users for driving lending services may not be sustainable if compliance issues are not addressed [1][14] - The overall financial health of Weibo is under scrutiny, as advertising revenue has declined by 2% year-over-year, while value-added services, including Weibo Borrow, are expected to play a crucial role in future growth [1][14]