On July 7, China Banking and Insurance Regulatory Commission and People's Bank of China issued a notice on further regulating credit card business. The specific notice is as follows:
China Banking and Insurance Regulatory Commission and People's Bank of China issued
In recent years, the credit card business of my country's banking financial institutions has grown rapidly. development, playing an important role in facilitating people's payment and daily consumption. However, in the recent period, some banking financial institutions have extensive credit card business operating concepts, weak service awareness, inadequate risk management and control, and behaviors that harm the interests of customers. In order to promote the implementation of new development concept by banking financial institutions, firmly establish the people-centered development idea, improve the quality and efficiency of credit card business to benefit the people and provide convenient services, effectively protect the legitimate rights and interests of financial consumers, and develop better with high quality. To support scientific and rational consumption, the China Banking and Insurance Regulatory Commission and the People's Bank of China recently issued the "Notice on Further Promoting the Standardized and Healthy Development of Credit Card Business" (hereinafter referred to as the "Notice").
The "Notice" consists of eight chapters and 39 articles, which are divided into strengthening the management of credit card business operations, strictly regulating card issuance and marketing activities, strict credit management and risk management and control, strictly controlling the flow of funds, comprehensively strengthening the standardized management of credit card installment business, and strict management of cooperative institutions. , Strengthen the protection of consumers' legitimate rights and interests, and strengthen the supervision and management of credit card business. The main contents are:
First, standardize the collection of credit card interest fees. Some banking financial institutions have unclear disclosure of interest rates, one-sided promotion of low interest rates and low rates, disguised charging of interest in the name of handling fees, blurring actual usage costs, and unreasonable setting of too low a starting point for bill installments or no starting point. Problems such as the implementation of automatic installments without the customer's independent confirmation make it difficult for customers to judge the cost of using funds, and even increase the customer's interest burden. The "Notice" requires banking financial institutions to effectively improve the standardization and transparency of credit card interest fee management, strictly perform interest explanation obligations in contracts, display the highest annual interest rate level in a clear way, and continue to take effective measures to reduce customer interest fees. burden, and actively promote a reasonable reduction in credit card interest rates. For credit card installment business, banking financial institutions are required to clarify the minimum starting amount and maximum amount limit, uniformly use the form of interest to display the cost of using funds for the installment business, and must not induce excessive use of installments to increase customer interest charges.
The second is to effectively strengthen the protection of consumer rights . Current consumer complaints in the credit card field mainly focus on irregular marketing promotions, poor complaints, improper collection of customer information, improper collection, etc. Focusing on the outstanding issues reported in mass complaints, the "Notice" made targeted regulations, requiring banking financial institutions to: strictly state the legal risks and legal responsibilities involved in credit cards, and shall not engage in fraudulent and false propaganda; implement unified qualifications for the bank's credit card marketing personnel, Issue certificates and present them to customers in advance. Complaint channels must be strictly announced to customers, and sufficient personnel and other resources must be allocated based on the number of complaints. Customer data security management must be strictly implemented and customer information must be collected through the bank’s self-operated channels. Collection behavior must be strictly regulated, and collections from third parties unrelated to the debt must not be made.
The third is to change the extensive development model. Some banking financial institutions have unscientific business philosophy and blindly pursue economies of scale and market share. They are prone to excessive issuance of cards and repeated issuance of cards, and imprudent credit management and control, leading to problems such as disorderly competition, waste of resources, and excessive credit granting. "Notice" requires banking financial institutions not to use card issuance volume, number of customers, etc. as the single or main assessment indicators, and banking financial institutions with a long-term dormant card rate exceeding 20% are not allowed to issue new cards. Set a reasonable upper limit on the total credit limit of a single customer's credit card. When approving credit and adjusting the credit limit, the customer's cumulative credit limit from other institutions should be deducted.
The fourth is to standardize the management of external cooperation behaviors. Some banking financial institutions have problems such as irregular credit card business cooperation practices, inadequate management and control, and unclear boundaries of rights and responsibilities between the two parties.The "Notice" requires the headquarters of banking financial institutions to implement a unified list-based management of cooperative institutions, strictly manage the approval standards and procedures, and shall not carry out core credit card business links through the Internet platform controlled by cooperative institutions. The volume and amount of credit card issuance achieved through a single cooperative institution The credit balance of and should comply with the concentration index restrictions. Regarding the co-branded card business, the "Notice" prohibits banking financial institutions from having the co-branded unit directly or in disguise perform credit card business responsibilities. The business scope of the co-branded card cooperation is limited to the promotion and promotion of the joint unit and the provision of rights and interests services in its main business field.
The fifth is to further promote the facilitation of credit card online services. The "Notice" encourages qualified banking financial institutions to proactively adapt to economic development and upgrading changes in consumer financial needs, and in accordance with the principles of risk control, prudent and orderly, explore model innovations such as online credit card business through pilot methods, and stimulate and shape New development driving force and vitality will enrich credit card service functions and product supply, and continuously enhance the people's sense of gain, convenience and security in applying for and using cards.
In the next step, China Banking and Insurance Regulatory Commission and People's Bank of China will urge banking financial institutions to conscientiously implement the requirements of the "Notice" and promote high-quality development of the credit card industry to better support scientific and rational consumption.
Source: China Banking and Insurance Regulatory Commission website
