Hundreds of villagers in northeast China Liaoning Province were dumbfounded to learn they owe debts totaling 30 million yuan (US$4.77 million) though they never applied for loans from the local rural credit cooperatives.

Tai'an Rural Credit Cooperatives [file photo]

The shocking revelation came after Zhang Jingzhi, in charge of processing loans at the Xinkaihe Town Credit Coop, died last August, and the Tai'an County Credit Cooperatives Union came to check the accounts.

Even some teenagers were on the debt list. Villagers believe Zhang stole their personal information and loaned the money to others, the Beijing News reported.

It is common, though illegal, for rural residents to borrow a relative's or a friend's personal ID card to apply for loans.

Zhang refused to provide loans to unfamiliar villagers but kept copies of their ID cards and lent money to others, since the ID card owners need not to be present when a loan is made, villagers said.

Chai Yaqiang, deputy director of the Tai'an County Credit Coop Union, admitted a procedural violation, but refused to give details.

"I didn't know how Zhang made the loans," Chai said, adding that police have opened an investigation into the case and 17 million yuan has been traced to some real borrowers.

Li Ping, director of Xinkaihe Town Credit Coop, has been suspended from his post because he never verified the loan-application documents and never monitored the credit coop workers, the report said yesterday.

Li Dongbo, a local villager, who was "unknowingly indebted" three times said: "Yang Baoqing with the Tai'an County Credit Coop Union admitted he used my information to loan money to others. He tried to persuade me to accept some compensation and let it go," Li said.

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