In recent years, the credit card business of my country's banking financial institutions has developed rapidly, and has played an important role in facilitating public payments and daily consumption. However, in recent years, some banks' credit card business has extensive business philosophy, weak service awareness, insufficient risk control, and infringement of customers' legitimate rights and interests. In order to promote banks to implement the new development concept, firmly establish the people-centered development philosophy, improve the quality and efficiency of credit card business benefits and convenience services, effectively protect the legitimate rights and interests of financial consumers, and better support scientific and rational consumption with high-quality development, the China Banking and Insurance Regulatory Commission recently issued the "Notice on Further Promoting the Standardized and Healthy Development of Credit Card Business (Draft for Comments)" (hereinafter referred to as the "Notice").
The Notice has a total of eight chapters and thirty-seven articles, including strengthening the operation and management of credit card business, strictly standardizing card issuance and marketing behavior, strictly enforcing credit management and risk control, strictly controlling the flow of funds, comprehensively strengthening the standardized management of credit card installment business, strictly managing cooperative institutions, strengthening the protection of consumers' legitimate rights and interests, and strengthening the supervision and management of credit card business. Focus on the following areas of problems:
First, strictly regulate the collection of credit card interest fees. Some banks have unclear disclosure of interest and fee levels, one-sidedly promote low interest rates and low fees, collect interest in disguise in the name of handling fees, blur the actual usage costs, unreasonably set too low bill installment starting point or no starting point, and implement automatic installment without independent confirmation by customers, etc., which increases the difficulty for customers to accurately understand and judge the cost of credit card usage, and even increases the burden on customers' interest and fees. The "Notice" requires banks to effectively improve the standardization and transparency of credit card interest fee management, and to show that the cost of installment business funds is uniformly adopted in interest. The total amount of interest and expenses borne by the default or overdue customers shall not exceed its corresponding principal. The minimum starting amount and maximum amount limit for installment business should be clarified, and the customer's interest and fee burden shall not be increased by inducing excessive use of installments. At the same time, it is clearly required that banks must continue to take effective measures to resolutely promote a reasonable decline in credit card interest fees.
The second is to strengthen the governance of over-creditation of credit cards. Some banks’ credit card credit management and control are not prudent, and cannot rigorously evaluate the credit status of customers, causing problems such as excessive credit, increasing operating risks, and unreasonably pushing up customer leverage levels. The "Notice" requires banks to reasonably set the upper limit of the total credit limit for a single customer credit card. When approving and adjusting credit limits, the accumulated credit limits of credit cards from other institutions should be deducted to prevent unreasonable overlapping of credit across banks.
The third is to urge the transformation of the extensive development model of credit cards. Some banks have unscientific business philosophy, blindly pursue economies of scale and market share, and have prominent situations in issuing cards indiscriminately and repetitive issuances, resulting in disorderly competition and waste of resources. The "Notice" requires banks not to use the number of cards issued and the number of customers as single or main assessment indicators, and the long-term sleep credit card ratio shall not exceed 20%. Banks that still exceed this proportion after rectification shall not issue new cards. In the future, the China Banking and Insurance Regulatory Commission will also dynamically lower the limit on the proportion of long-term sleep credit cards, and continuously urge the industry to reduce the proportion of sleep cards to a lower level.
Fourth, effectively strengthen consumer rights protection. Currently, consumer complaints in the credit card field are mainly concentrated in irregular marketing and publicity, poor complaints, and improper collection of customer information. The "Notice" requires banks not to conduct fraudulent and false propaganda or forced bundled sales, and must fully disclose card use risks, complaint channels and unbundled procedures, and strengthen customer data security management.
5 is to strictly regulate the management of external cooperation behaviors of credit cards. Some banks have problems such as irregular cooperation behavior in credit card business, inadequate control, and unclear boundaries of rights and responsibilities between the two parties involved in cooperation. The "Notice" requires banks to handle the core business links of credit cards through self-operated online platforms, implement a unified list management for cooperative institutions, and clearly stipulate the rights and responsibilities of both parties. The number of cards issued by banks through a single cooperative institution and the credit balance must meet the concentration indicator restrictions.It is clearly stipulated that the joint-branded unit of the joint card should be a non-financial institution that provides customers with their main business services, and the cooperation content is limited to the joint-branded unit advertising promotion and rights and interests services related to their main business.
Next step, the China Banking and Insurance Regulatory Commission will further modify and improve and release and implement it in a timely manner based on feedback from all walks of life.
Relevant department heads of China Banking and Insurance Regulatory Commission answered reporters' questions on the "Notice on Further Promoting the Standardized and Healthy Development of Credit Card Business (Draft for Comments)"
In order to standardize the operation of credit card business, implement the management responsibilities of banking financial institutions and their cooperative institutions, improve the quality and efficiency of credit card services, protect the legitimate rights and interests of financial consumers, adhere to the people-centered development philosophy, and promote the credit card industry to better support scientific and rational consumption with high-quality development, the China Banking and Insurance Regulatory Commission has formulated the "Notice on Further Promoting the Standardized and Healthy Development of Credit Card Business (Draft for Comments)" (hereinafter referred to as the "Notice"). The head of relevant departments of the China Banking and Insurance Regulatory Commission answered reporters' questions on related questions.
1. What is the background of the formulation of the "Notice"?
Answer: In recent years, the credit card business of my country's banking financial institutions has developed rapidly, and has played an important role in facilitating public payments and daily consumption. However, in recent years, some banks have extensive business philosophy, weak service awareness, insufficient risk control, and infringement of the legitimate rights and interests of customers. It is urgent to promote banks to base themselves on the new development stage, implement new development concepts, and build a new development pattern, firmly establish the people-centered development philosophy, accelerate the transformation of the development mode of credit card business, strengthen prudent and compliant operations, improve the quality and efficiency of financial services, do a good job in protecting consumer rights, and improve the quality of services that benefit and facilitate the people. This "Notice" is formulated for this purpose.
2. What regulatory requirements does the "Notice" mainly put forward for credit card business?
Answer: (I) About business management. The "Notice" puts forward requirements from five aspects: strategic management, performance appraisal, asset quality management, behavior management and employee training. It is stipulated that banks should formulate a prudent and stable credit card development strategy; establish a scientific and reasonable performance evaluation indicator system and salary payment mechanism; comprehensively, accurately and timely reflect asset risk status; implement full-process supervision of business behaviors of important positions and key personnel, establish and improve the accountability and record mechanism for illegal and irregular behaviors; strengthen employee compliance training and consumer rights protection training.
(II) About card issuance management. The "Notice" requires banks not to directly or indirectly use the number of card issuances, number of customers, market share or market rankings as single or main assessment indicators. Strengthen dynamic monitoring and management of sleep credit cards. The number of long-term sleep credit cards that have no active transactions for more than 18 consecutive months and have zero overdraft balance and overpayment payments account for the total number of card issuances of this institution shall not exceed 20% at any point, except for credit cards with additional policy functions. Banks exceeding this proportion are not allowed to issue new cards. In the future, the China Banking and Insurance Regulatory Commission will also dynamically lower the limit on the proportion of long-term sleep credit cards, and continuously urge the industry to reduce the proportion of sleep cards to a lower level. In addition, the "Notice" also lists marketing prohibited behaviors such as default checking and compulsory bundling, and clearly stipulates that no person shall engage in the institution's credit card issuance marketing activities without the unified qualification certification within the bank.
(III) About credit management. The "Notice" requires banks to reasonably set the upper limit of the total credit limit of a single customer and include it in the unified management of the customer within all credit limits of the institution. When approving credit limits and adjusting credit limits, the accumulated credit limits of credit cards from other institutions should be deducted. Implement strict and prudent dynamic management of credit card credit limits. Strengthen the management of credit card risk model and shall not outsource the management responsibilities of risk model.
(IV) About credit card installment business.The "Notice" requires that installment business should set up prior independent application, approval and other links, and should not be confused or bundled with other credit card business contracts (agres) and signed. The balance of funds that have been processed in installments shall not be processed again, except for the personalized installment repayment agreement stipulated by the supervision. Banks should clarify the minimum starting amount and maximum amount limit for installment business. The installment business term shall not exceed 5 years. If a customer really needs to apply for installment repayment for the advance cash loan business, the amount shall not exceed RMB 50,000 or the equivalent value may be freely exchanged for currency, and the term shall not exceed 2 years.
(V) Regarding the collection of interest fees and information disclosure. The "Notice" requires banks to strictly fulfill their warning or explanation obligations when entering into a credit card contract with customers, and to show the annualized interest rate level to customers in an obvious way. Except for cash withdrawal business, the total amount of interest and fees charged to customers who default or have not repaid overdue shall not exceed their corresponding principal.
For installment business, the "Notice" specifically requires banks to display all interest and fee items, annualized interest rate levels and interest and fee calculation methods that may arise in the installment business in a clear manner on the homepage of the installment business contract (agreement). When showing the cost of funds collected for installment business to customers, interest shall be adopted in a unified form and handling fees shall not be adopted, unless otherwise provided by laws and regulations. If a customer settles credit card installment business in advance, the bank shall collect interest based on the actual amount of funds occupied and the term.
At the same time, the "Notice" clearly states that banks should scientifically determine the level of credit card interest fees, continue to take effective measures, and resolutely promote the reasonable downward trend of credit card interest fees.
(VI) Regarding consumer rights protection. The "Notice" requires banks to establish a review system and a working mechanism for consumer rights protection. Fully disclose the risks of card use, complaint channels and unbundled procedures, and ensure that sales behavior is traceable. Customer data security management should be strengthened and cooperation should not be carried out with institutions that violate the law and regulations on data processing. Banks are required to implement the main responsibility for collection management and shall not collect collections from third parties that are not related to debts.
(VII) Regarding external cooperation behavior management. The "Notice" requires banks to formulate clear access and exit standards and management approval procedures for cooperative institutions, and implement list management. The core business links of credit cards should be handled through self-operated online platforms to ensure that the creditor-debtor relationship is clear and accurate. Concentration indicators are set for banks to issue cards and credit balances through a single cooperative institution. The joint unit that cooperates in issuing joint cards should be a non-financial institution that provides customers with their main business services. The cooperation content is limited to the joint unit's advertising promotion and rights and interests services related to their main business.
3. What measures does the "Notice" take to support and encourage credit card innovation?
Answer: The China Banking and Insurance Regulatory Commission encourages the banking industry to actively adapt to economic development and the upgraded changes in consumer financial needs, reasonably apply new technologies, new channels and new models to continuously optimize credit card service functions, enrich product supply, and continuously and effectively reduce the various usage costs of credit cards, provide strong support for expanding scientific and rational consumption, and effectively enhance the people's sense of gain, convenience and security in applying for cards. The "Notice" clearly states that in accordance with the principles of controllable risks, safe and orderly, innovative models such as online credit card business will be explored through pilot projects and other methods.
4. How does the "Notice" stipulate the transition period for rectification?
Answer: The "Notice" stipulates that banking financial institutions shall complete the rectification within 24 months from the date of implementation of the document. The China Banking and Insurance Regulatory Commission will also continue to urge banks to take the implementation of the "Notice" as an opportunity to effectively enhance their awareness of prudent compliance, strengthen risk management responsibilities, standardize business operations, improve refined management levels, and strive to achieve high-quality development.
Notice on Further Promoting the Standardized and Healthy Development of Credit Card Business (Draft for Comments)
In order to standardize the operation of credit card business, implement the management responsibilities of banking financial institutions and their cooperative institutions, improve the quality and efficiency of credit card services, protect the legitimate rights and interests of financial consumers, adhere to the people-centered development philosophy, and promote the credit card industry to better support scientific and rational consumption with high-quality development, this notice is formulated.
1. Strengthen credit card business management
(I) [Strategic Management] Banking and financial institutions shall formulate prudent and stable credit card development strategies, and shall be reviewed and approved by the board of directors or senior management of the institution, and shall be continuously implemented effectively and regularly evaluated and improved. Banking financial institutions should reasonably formulate annual business management goals and plans for credit cards strictly based on development strategies.
(II) [Performance Assessment] Banking financial institutions should establish a scientific and reasonable credit card business performance assessment index system and salary payment mechanism. The weights of compliant operating indicators and risk management indicators should be significantly higher than other indicators. Banking financial institutions should regularly evaluate and determine the scope of positions and personnel that have an important impact on the risks of credit card business, and implement strict management of delayed payment of performance compensation and delayed recovery and deduction.
(III) [Asset Quality Management] Banking financial institutions should strictly implement credit card asset quality classification standards and certification procedures, and comprehensively, accurately and promptly reflect asset risk status. Strengthen the analysis of asset quality migration trends, set risk warning indicators, continuously and effectively identify, measure, monitor, warning, prevent and dispose of risks, accurately grasp the scale and structure of non-performing assets, and promptly write off according to procedures.
(IV) [Behavior Management] Banking financial institutions should strictly implement employee behavior management of credit card business, carry out continuous supervision and regular inspections, implement full-process supervision of business behaviors of important positions and key personnel, and establish and improve the accountability and record mechanism for illegal and irregular behaviors.
(V) [Employee Training] Banking and financial institutions should strengthen compliance training and consumer rights protection training for employees engaged in credit card business of their institutions, and each person's annual training time shall not be less than 30 hours.
2. Strictly regulate the issuance marketing behavior
(VI) [Card Issuance Management] Banking and financial institutions shall not directly or indirectly use the number of card issuances, number of customers, market share or market rankings as single or main assessment indicators.
Banking financial institutions should continue to take effective measures to prevent risks such as counterfeiting and fraudulent card application and excessive card application. Set an upper limit on the number of cards issued for a single customer. Strengthen dynamic monitoring and management of sleep credit cards and strictly control the proportion. The number of long-term sleep credit cards that have no active transactions for more than 18 consecutive months and the current overdraft balance and overpayment is zero shall not exceed 20% of the total number of cards issued by this institution at any time, except for credit cards with additional policy functions issued by banking financial institutions. Banking and financial institutions exceeding this proportion are not allowed to issue new cards. The China Banking and Insurance Regulatory Commission (hereinafter referred to as the China Banking and Insurance Regulatory Commission) can dynamically lower the proportion limit standards for long-term sleep credit cards according to regulatory needs.
When banking financial institutions bind payment accounts and other accounts to credit cards, they should respect the customer's true wishes and provide unbinding services of the same level of convenience. If a customer applies for card cancellation, the processing should be completed in a timely manner after confirming that there are no outstanding funds.
(VII) [Information Disclosure] Banking financial institutions should effectively strengthen marketing and publicity management when carrying out credit card business.When entering into a credit card contract with the customer, the terms and risk disclosure such as interest, compound interest, fees, liquidated damages, etc., should strictly fulfill the obligation to remind or explain, and show the annualized interest rate level to the customer in a clear way to ensure that the customer pays attention to and understands the terms and contents, and actively inform the customer of the consultation and complaint acceptance channels. When opening a network payment function for a communication card for customers, they should fully fulfill their obligation to inform themselves, reach an agreement with the customer on the terms of online payment, and obtain confirmation and consent of the customer on the matter of opening.
(8) [Sales Traceability] Banking financial institutions should actively take measures such as recording and video recording to fully and objectively record and save important sales link information such as credit card issuance business processing, risk disclosure, and information disclosure to ensure that the recorded information is comprehensive, accurate, tamperable and traceable, and continue to meet the requirements of supervision and inspection of financial regulatory departments in my country and investigation and evidence collection by judicial authorities. The recorded information should at least include: valid identity documents of the credit card applicant, financial status related to the credit card application, credit records, promotional and sales text, signed credit card charter and collection contract (agre), important tips and confirmation information, etc. The recorded information shall be kept for at least 2 years after the end of the business period with the customer.
(9) [Marketing Personnel Management] No person shall engage in the institution's credit card issuance marketing activities without internal unified qualification certification by the banking financial institution. Banking financial institutions shall provide information inquiry methods for credit card marketers in their business outlets and electronic channels. Credit card marketers shall present to the customer the work documents containing the card issuing agency logo and personal work information to the customer, and inform the customer of the information query method.
(10) [Prohibited behavior] Banking financial institutions should implement strict credit card marketing behavior management. No promises to issue cards or provide high credit; no fraud or false publicity shall be carried out; no credit cards shall be marketed by default checking or forced bundling sales shall be used.
3. Strict credit management and risk control
(11) [Credit Review] Banking financial institutions should strengthen credit audits for credit card customers, understand and analyze customer credit status through legal channels such as the basic financial credit information database, implement necessary multi-dimensional cross-verification, and independently review and judge customer identity and identify the authenticity, integrity and timeliness of the content of the application materials. For customers who have found that multiple debt records in different institutions, strict review should be carried out and long loan risks should be strictly prevented.
(12) [Credit Management] Banking financial institutions shall reasonably set the upper limit of the total credit limit of a single customer based on the customer's credit status, income status, financial status, etc., and include it in the customer's unified management within all credit limits of the institution. Within the total credit limit of credit card, the credit limit of pre-lending cash business shall not exceed the credit limit of non-advanced cash business.
Banking financial institutions shall conduct sufficient due diligence on a single customer and implement merger management of all credit credit limits of the customer in other institutions as they have learned. When credit approval and credit limit increase (including temporary credit limit increase), the cumulative credit limit of credit that the client has obtained from other institutions shall be deducted accordingly within the total credit limit of the credit card of the institution. The credit limit of the newly issued card customers shall be monitored at the same time to apply for credit cards in other institutions and shall be implemented accordingly.
(13) [Credit adjustment management] Banking financial institutions should implement strict and prudent dynamic management of credit card credit limits, and at least re-evaluate, calculate and determine the credit limits of credit card customers at least once a year. For customers whose risk situation has significantly worsened, measures such as reducing credit limits should be taken in a timely manner. Customers who have increased the credit limit shall re-approve their credit limit, and the credit limit shall not be increased without the customer's consent. Banking financial institutions should strictly set up the approval authority for the upgrade of credit limits, and reasonably set the amplitude, number, time interval and validity period of temporary credit limit increases.
(14) [Risk Model] Banking and financial institutions should establish and improve a full-process management mechanism for the development, testing, review, application, monitoring, correction, optimization and exit of credit card risk models to ensure that the development and review links of risk models are independent of each other, and at least every year the risk models are re-evaluated and timely updated and optimized. When using the risk model provided by the cooperative organization, the principles of interpretability, verifiability, transparency and fairness should be followed, and the risk model management responsibilities shall not be outsourced. The board of directors and senior management of banking financial institutions should understand the role and limitations of credit card-related risk models.
4. Strictly control the flow of funds
(15) [Fund flow] Banking financial institutions should take effective measures to timely and accurately monitor and control the actual use of credit card funds. Credit card funds shall not be used to repay loans, investments and other areas, and it is strictly prohibited to flow into policy-restricted or prohibited areas.
(16) [Abnormal card use] Banking and financial institutions should strengthen the monitoring and analysis of abnormal card use behaviors such as cash out and theft, continuously optimize transaction monitoring rules, improve early warning capabilities, and continuously and effectively prevent and control various fraud risks. Complete records and save credit card transactions and other information in accordance with the law, and continue to meet the requirements of supervision and inspection of financial regulatory departments in my country and investigation and evidence collection by judicial organs. If the transaction information that the acquiring agency should send in accordance with regulations has not been received, it shall promptly inform the bank card clearing agency, non-bank payment institution online payment and clearing platform and other relevant institutions. For customers who confirm that there is cash out behavior, banking financial institutions should immediately take effective restrictive measures to control the risks of credit card funds.
5. Comprehensively strengthen the standardized management of credit card installment business
(17) [Business Processing] Banking and financial institutions should strictly regulate credit card installment business management. When handling installment business for customers, prior independent application, approval and other links should be set up, and the nature of installment business, processing procedures, potential risks and breach of contract liability should be fully disclosed in a concise and easy-to-understand manner, and the customer will confirm and know through a legally effective method. A separate contract (an agreement) should be signed with the customer for each installment business, and shall not be confused or signed in conjunction with other credit card business contracts (an agreements). If credit card installment funds need to be transferred to the customer's own account, they should be transferred to their own bank settlement account other than the credit card, and the amount and term management shall be carried out according to the advance cash loan business.
(18) [Prohibited Regulations] Banking financial institutions shall not apply for installment balances again for installments, except for the personalized installment repayment agreement stipulated in the "Regulations on Supervision and Administration of Credit Card Business of Commercial Banks". Minimum repayment service shall not be provided for installment business. The option of charging full installment interest in one installment may not be provided or checked by default.
(19) [Loan and term] Banking financial institutions should carefully set the amount and term of credit card installment overdraft, and clarify the minimum starting amount and maximum amount limit for installment business. The installment business term shall not exceed 5 years. If a customer really needs to apply for installment repayment for the advance cash loan business, the amount shall not exceed RMB 50,000 or the equivalent value may be freely converted into currency, and the term shall not exceed 2 years.
(Twenty) [Interest and Fee Disclosure Form] Banking and financial institutions shall clearly display all interest and fee items, annualized interest rate levels and interest and fee calculation methods that may arise in installment business on the homepage of the installment business contract (Agreement). When showing the cost of funds collected for installment business to customers, interest shall be adopted in a unified form and handling fees shall not be adopted, unless otherwise provided by laws and regulations.
(21) [Interest Fee Collection] If a customer settles credit card installment business in advance, the banking financial institution shall collect interest based on the actual amount of funds occupied and the term.
6. Strict management of cooperative institutions
(22) [Cooperative Institution Management] When banking financial institutions conduct credit card business cooperation, they should effectively implement the main responsibility for business compliance review and strengthen cooperation with cooperative institutions in terms of employee compliance and consumer protection training. The head office’s credit card business management department or the credit card specialty agency headquarters shall formulate clear access and exit standards and management approval procedures for cooperative institutions, and implement list management. A written cooperation contract shall be signed with the cooperative institution and the rights and responsibilities of both parties shall be clearly stipulated. If a cooperative institution is found to provide unfair and unreasonable cooperation conditions or services, it shall refuse to cooperate or terminate the cooperation in accordance with the contract. The cooperative institutions referred to in this notice include but are not limited to various institutions that cooperate in business links such as credit card advertising promotion, payment settlement, information technology, value-added services and collection.
(23) [Cooperative Management] Banking financial institutions shall accept credit card applications, customer information collection, identity verification, card issuance and review, contract (agreed) terms signing, credit card transactions and bill information inquiry, repayment and other business links through self-operated online platforms, pages or other electronic channels, and shall not implement them through online platforms, pages or other electronic channels managed and controlled by cooperative institutions to ensure that the creditor-debtor relationship is clear and accurate. For consumers who transfer to the self-operated online platform of this institution through other cooperative institutions, the cooperative institutions should be required to make special reminders on the differences in the ownership subjects of the channel and place.
(24) [Concentration Management] The total number of credit cards issued by banking financial institutions through a single cooperative institution or multiple cooperative institutions with related relationships and approved through various channels shall not exceed 25% of the total number of credit cards issued by this institution, and the total credit balance shall not exceed 15% of the total credit balance of this institution.
(25) [Co-branded Card Management - Main Responsibility] Banking financial institutions shall assume the main responsibility for the operation and management of the joint card of the institution to ensure that the two parties to the joint card cooperation equally present their respective brands in all credit card-related business links, and shall not directly or disguisedly exercise bank responsibilities or replace bank brand with the joint unit brand. The analysis and monitoring of joint-branded units' operating risks, reputation risks and other adverse effects should be continuously strengthened, and risks should be strictly prevented from being transmitted to this institution. Except for obtaining separate authorization from customers through the self-operated channels of this institution, information that is not related to its rights and interests shall not be transmitted back to the joint unit. Business shall not be conducted through issuing joint cards or through the channels of joint units that exceed the restrictions on the operating area. Strengthen cooperation with bank card clearing institutions and establish and improve joint card issuance business rules.
(26) [Co-branded Card Management - Co-branded Unit] Banking financial institutions should carefully and fully evaluate the matching degree between the jointed unit and the credit card product positioning. The joint unit should be a non-financial institution that provides credit card customers with value-added services in the main business areas of the unit. Banking financial institutions shall not cooperate with financial institutions, financial holding companies and their affiliated financial institutions, non-bank payment institutions, local financial organizations, etc. to issue joint cards, unless otherwise provided by the China Banking and Insurance Regulatory Commission.
(27) [Co-branded card management - service restrictions] The business scope of joint card cooperation for banking financial institutions should be limited to joint-branded unit advertising promotion and rights and interests services related to their main business. If a joint unit provides other services such as data analysis, technical support, collection, etc., it shall sign a special contract separately and agree on the rights and responsibilities of both parties in accordance with the principle of matching income risks. Different cooperation content categories shall not be confused or cross-bundled.
(28) [Co-branded Card Management - Service Charge] If a joint unit directly or disguisedly participates in credit card revenue or profit sharing in the joint card business cooperation, or improperly links the charging standards to indicators such as credit card overdraft amount, banking financial institutions shall stop co-branded with them.
(29) [Cash Collection Management] Banking financial institutions shall implement the main responsibilities of collection management, strictly formulate and implement management systems such as audit inspection and complaint handling of collection business, standardize collection behavior, and shall not provide or disclose customer debt information illegally or in violation of regulations, and shall not collect debts from third parties that are not related to debts. Continuously strengthen the construction of the collection capacity of this institution and reduce the dependence on outsourcing collection.
7. Strengthen the protection of consumers' legitimate rights and interests
(30) [Consumer Insurance Review] Banking financial institutions shall establish a consumer rights protection review system and working mechanism, and include it in the credit card business risk management and internal control system. Regularly and strictly review credit card format contracts to avoid terms and content that infringes on consumers' legitimate rights and interests.
(31) [Rational Pricing] On the premise of compliance with the law and effective coverage of risks, banking financial institutions should scientifically determine the level of credit card interest fees, improve the quality and efficiency of services, continue to take effective measures, and resolutely promote the reasonable decline in credit card interest fees. Except for cash withdrawal business, the total amount of interest and fees collected by banking financial institutions to customers who default or have not repaid overdue shall not exceed their corresponding overdraft principal.
(32) [Data Security] Banking financial institutions shall strictly implement relevant laws and regulations such as data security and credit management, follow the principle of "legal, legitimate, and necessary". They shall clearly stipulate the purpose, method and scope of the use of customer information between both parties, the responsibility and obligation of confidentiality of customer information, and effective measures to prevent and control the risk of customer information leakage. Cooperation shall not be carried out with institutions that violate the law and regulations on data processing.
8. Strengthen the supervision and management of credit card business
(33) [Daily Supervision] The China Banking and Insurance Regulatory Commission and its dispatched institutions shall strengthen the risk identification, monitoring, early warning, prevention and control of credit card business in banking financial institutions, and continuously strengthen the extended monitoring and specification of various business activities related to credit card business. Those who violate the provisions of this notice shall be ordered to correct the problem within a time limit, and may take relevant regulatory measures or impose administrative penalties in accordance with the "Banking Supervision and Administration Law of the People's Republic of China" and other laws, administrative regulations and relevant provisions.
(34) [Online Credit Card Business] The China Banking and Insurance Regulatory Commission promotes innovation in the credit card industry in accordance with the principles of controllable risks, stable and orderly, and explores innovative models such as online credit card business through pilot projects.
(35) [Strengthening industry self-discipline] The China Banking Association should give full play to the industry's self-discipline functions, continuously improve the credit card business self-discipline rules and risk assessment systems, etc., and strengthen self-discipline punishment and notification.
(Thirty-six) [Transition Period Arrangement] This notice shall come into effect on the date of publication. Banking financial institutions shall formulate and submit rectification plans to the regulatory authorities within one month from the date of implementation of this notice, and clarify the rectification goals and time schedules. If the credit card business that has been started does not comply with the provisions of this notice, rectification shall be completed within 24 months.
(37) [Other arrangements] If the relevant regulations before the issuance of this notice do not conform to this notice, this notice shall prevail. This notice is interpreted by the China Banking and Insurance Regulatory Commission.
Source: China Banking and Insurance Regulatory Commission
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