Formal small loan companies are only allowed to do business in the local area, and they must do it in person. They are not allowed to charge pre-loan fees or withhold interest, and they will never use bank accounts in the names of individuals (so-called legal persons, managers and financial officers) to charge fees. For example, microfinance companies in Beijing are only allowed to issue loans within the districts and counties where they are registered. The business beyond the geographical scope and the business based on the network platform are scams, which should be companies that cheat or defraud in the name of regular companies.