Chinanews.com, December 29. The China Banking and Insurance Regulatory Commission issued on the official website on the 29th "Warning about the risk of online platforms inducing excessive borrowing", stating that some online platforms are in order to acquire a large number of customers, through various online consumption scenarios, over-marketing loans or similar credit cards Financial products such as overdrafts induce excessive consumption.
The Consumer Rights Protection Bureau of the China Banking and Insurance Regulatory Commission issued the sixth risk warning in 2020 to remind consumers: to establish a rational consumption concept, rationally use loan products, choose formal institutions and formal channels to obtain financial services, and be alert to the hidden risks behind excessive lending marketing Or trap.
One is the improper information disclosure, and there is a risk of misleading sales.
Some institutions or online platforms unilaterally emphasize favorable conditions such as low daily interest rates, interest-free periods, and zero interest installment.
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.
Some marketing activities deliberately obscure the actual cost of borrowing and infringe consumers' right to know, which can easily lead to misunderstanding or understanding.
The second is excessive packaging marketing, falling into the trap of blind and uncontrolled consumption.
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.
After some minors and teenagers borrowed money on the Internet platform, they played the celebrity rankings, raised funds, rented places, and gave "fans support gifts". The phenomenon of "borrowing to chase stars" spread.
Blind lending and blind consumption will eventually infringe the rights and interests of financial consumers.
The third is excessive collection and misuse of customer information, and there is a risk of improper use and leakage of personal information.
The online loan marketing of some online platforms disregarded the interests of consumers, using "earth-flavored" and "wonderful" advertisements to attract traffic and capture customer information.
In the process of marketing or lending, excessive collection and misuse of customer information through advertising pages, and even the circulation of customer information among platform parties, lending institutions, investors, etc. without the knowledge of consumers, infringes on consumer information security right.
The fourth is disorderly lending, leading to excessive debt.
Some online platforms claim that the loan procedures are simple, tempting consumers to click through. Some institutions even over lend to minors, school students, low-income groups, etc., conduct violent collections, pretend to be judicial agencies, and malicious collections, targeting the relatives and friends of the borrowers. Collection collection triggered a series of family and social problems.
In response to these over-borrowing consumer marketing behaviors, the China Banking and Insurance Regulatory Commission's Consumer Rights Protection Bureau reminds 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 excessive borrowing consumer marketing.
——Rational consumption, living within your means
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.
——Use loan products rationally, and don’t “finance loans with loans” or “long-term loans”
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”.
——Choose formal institutions and formal channels to borrow
It is necessary to choose formal institutions and formal channels to obtain financial services, and pay attention to checking whether relevant institutions have business qualifications to prevent illegal financial activities.
Be vigilant against unidentified phone calls, links, and e-mail sales. Do not click on unidentified links at will. Do not provide important personal information on suspicious websites, enhance personal information protection awareness, and prevent fraud risks and personal information leakage risks.