(Yicai Global) June 3 -- China’s banking and insurance regulator will collect bonuses of senior executives serving almost 1,000 peer-to-peer lending platforms under investigation and the endorsement fees the firms paid to celebrities.

China had almost 1,400 consumer finance firms that were out of business but had outstanding loans of CNY716.1 billion (USD112.2 billion) as of March 31, down by 79 firms and CNY104.6 billion from last December, Liang Tao, vice chairman of the China Banking and Insurance Regulatory Commission, said at a press conference on June 1.

Chinese regulators began a crackdown on P2P lenders in 2018 due to illegal fundraising and frequent closures. Celebrities, including actress Fan Bingbing and TV show host Wang Han, were paid to endorse the services, attracting criticism online.

Stars and public figures failed to examine the services they were advertising and were using their influence to lure investors and hence, must be held responsible for the damages by assisting in clearing the loans, a dispute mediation center in Beijing wrote in a statement early this year.

Editor: Emmi Laine, Xiao Yi