Rumors have circulated for some time of tightening regulations in the cash loan industry in China, and some large platforms have already embraced regulation by lowering interest rates. However, few expected the regulator, the Leading Group Office for Thematic Regulation of Internet Finance Risk Work and the Leading Group Office for Thematic Regulation of P2P Lending Risk Work ("P2P Leading Group"), to formally promulgate on December 1, 2017 the Circular on Regulating and Rectifying Cash Loan Services ("Circular"). The Circular strikes a heavy blow against predatory practices and has caused a relative chill in the cash loan industry.