China News Agency, Beijing, December 29th (Reporter Wang Enbo) In order to obtain a large number of customers, some online platforms use various online consumption scenarios to over-market financial products such as loans or credit card overdrafts to induce excessive consumption. China Banking and Insurance Regulatory Commission Consumer Rights and Interests The Bureau of Protection issued a risk alert on the 29th to remind consumers to beware of the hidden risks or traps behind excessive lending marketing.
The risk reminder pointed out that some institutions or online platforms unilaterally emphasized favorable conditions such as low daily interest rate, interest-free period, and zero interest installment in their publicity.
However, the so-called "zero interest" does not mean zero cost. There are often "service charges", "handling fees", and "overdue billing". The actual comprehensive annualized interest rate of such products may be very high.
Excessive packaging marketing may also cause consumers to fall into a blind and uncontrolled consumption trap.
The risk reminder said that some institutions over-promote the concept of borrowing consumption and advanced enjoyment in various consumption scenarios.
This behavior of over-marketing and over-packing loan products can easily induce unrestrained consumption, especially misleading people with weak financial knowledge and young people without a stable source of income.
In particular, after some minors and teenagers borrowed money from online platforms, the phenomenon of ranking stars, raising funds, chartering venues, and giving "fans support gifts" and "borrowing to chase stars" has spread.
Blind lending and blind consumption will eventually infringe the rights and interests of financial consumers.
In response to these over-borrowing consumer marketing behaviors, the Consumer Insurance Bureau of the China Banking and Insurance Regulatory Commission reminded consumers: We must insist on starting from actual needs, establish a rational consumption concept of living within our means, and stay away from the trap of over-borrowing consumer marketing.
It is necessary to carefully understand the content of lending products. Certain marketing over-proclaimed "lending consumption", "advanced enjoyment" and "lending star chasing" behaviors are not worthy of promotion and imitation.
It is necessary to have a correct assessment of one's own economic affordability, and to prevent reckless borrowing and blind consumption behavior.
Excessive borrowing often leads to a cut-off of funds, and ultimately puts consumers and even families in trouble.
There is no free lunch in the world.
Consumers should understand online platform loans, credit card-like overdrafts, and installment products, and be aware of important information closely related to their rights and interests, such as loan interest rates, terms, and repayment methods. They should be wary of the so-called "interest-free" and "zero" by some institutions or platforms. One-sided propaganda of "interest".
Give full play to the role of lending products, establish a responsible lending awareness, and do not over-rely on borrowing for consumption, let alone “reliant on loans” or “long-term borrowing”.
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