The China Banking and Insurance Regulatory Commission further regulated the credit card business.
On December 16, the China Banking and Insurance Regulatory Commission issued a report on the “Notice on Further Promoting the Standardized and Healthy Development of Credit Card Business (Draft for Soliciting Comments)” (hereinafter referred to as “Draft for Soliciting Comments”), Solicit opinions from the public.
The “Draft for Comments” requires that banks shall not directly or indirectly use card issuance, number of customers, market share or market ranking as a single or main evaluation indicator. Strengthen the dynamic monitoring and management of sleep credit cards, and the number of long-term sleep credit cards that have no active customer transactions for more than 18 months and the current overdraft balance and overpayment are zero The ratio of the number of long-term sleep credit cards to the total card issuance of the institution shall not exceed 20 at any point in time %, except for credit cards with additional policy functions. Banks exceeding this ratio are not allowed to issue new cards.
In the future, the China Banking and Insurance Regulatory Commission will also dynamically lower the limit standard for the proportion of long-term sleep credit cards, and continue to urge the industry to reduce the proportion of sleep cards to a lower level. In addition, the “Notice” also listed marketing prohibitions such as ticking consent by default and compulsory bundling sales, and clearly stipulated that no personnel shall engage in the credit card issuance marketing activities of the institution without the unified internal qualification verification of the bank.
In recent years, as consumers’ consumption concepts have changed and their consumption levels have improved, credit card installment business has gradually become a consumption method for many people. However, there are still some irregularities in the development of this business.
The “Draft for Solicitation of Opinions” proposes that instalment business should be set up in advance independent application, approval and other links, and must not be mixed or signed in conjunction with other credit card business contracts (agreements). It is not allowed to apply for instalment again for the balance of funds that have already been installed, except for the personalized installment agreement as required by the supervision. The bank shall clarify the minimum starting amount and the maximum amount of instalment business. The term of installment business shall not exceed 5 years. If the customer really needs to apply for instalment repayment for the cash advance business, the amount shall not exceed RMB 50,000 or the equivalent freely convertible currency, and the period shall not exceed 2 years.
According to the “Draft for Solicitation of Comments”, when banks enter into credit card contracts with customers, they should strictly implement the terms and risks of interest, compound interest, fees, liquidated damages, etc., and the disclosure of risks Prompt or explain the obligation, and show the customer the annualized interest rate level in a clear way. Except for the cash withdrawal business, the total amount of interest and fees charged to customers who have defaulted or overdue payments shall not exceed their corresponding principal.
In terms of instalment business, the “Draft for Comments” specifically requires banks to display all the interest items, annualized interest rates, and annualized interest rates that may arise from instalment business in an obvious way on the first page of the installment business contract (agreement). Interest calculation method. When showing customers the cost of using the funds collected by the instalment business, they should uniformly adopt the form of interest instead of handling fees, etc., unless otherwise provided by laws and regulations. If the customer settles the credit card installment business in advance, the bank shall calculate and collect interest based on the actual amount of funds occupied and the time limit.
In terms of the flow of funds, the “Draft for Comments” has always made it clear that banking financial institutions should take effective measures to timely and accurately monitor and control the actual use of credit card funds. Letter Card funds must not be used to repay loans, investment, etc., and it is strictly prohibited to flow into policy restrictions or prohibited areas.
In addition, in terms of collection, the “Draft for Solicitation of Comments” clarifies that banking financial institutions should implement the main responsibilities of collection management, and strictly formulate and implement collection business audit inspections , Complaint handling and other management systems, standardize collection behavior, and must not provide or disclose customer debt information in violation of laws and regulations, and must not collect collection from third parties that have nothing to do with debts. Continue to strengthen the organization’s collection capacity building and reduce the reliance on outsourcing collection.
The “Draft for Solicitation of Comments” also gives the relevant transition period, giving financial institutions time for rectification. The “Draft for Solicitation of Comments” proposes that banking financial institutions shall, within one month from the implementation of this notice, formulate and submit a rectification plan to the supervisory authority, and clarify the rectification goals and time schedule. If the established credit card business does not meet the requirements of this notice, the rectification shall be completed within 24 months.