China Banking Regulatory Commission issued a risk warning: the so-called "zero interest" does not mean zero cost
Be wary of online platforms inducing excessive borrowing and do not "finance loans with loans"
In recent years, some online platforms have used various online consumption scenarios to over-market financial products such as loans or credit card overdrafts to induce excessive consumption.
Yesterday, the Consumer Rights Protection Bureau of the China Banking and Insurance Regulatory Commission issued the sixth risk warning for 2020, reminding consumers: to establish a rational consumption concept, rationally use loan products, choose formal institutions and formal channels to obtain financial services, and beware of excessive borrowing marketing. Hidden risks or pitfalls.
The so-called "zero interest" does not mean zero cost
The China Banking and Insurance Regulatory Commission reminded that these online platforms have 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 risk warning pointed out that some platforms have over-packaged marketing, causing consumers to fall into the trap of blind and uncontrolled consumption.
It is especially easy to mislead people with weak financial knowledge and young people who do not have 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.
Use "earth flavor" and "wonderful flowers" advertisements to capture customer information
There are also platforms that excessively collect and abuse customer information, and there are risks of improper use and disclosure of personal information.
The risk reminder pointed out that online loan marketing on some online platforms disregarded the interests of consumers and used "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 risk reminder pointed out that some online platforms claim that the loan procedures are simple, tempting consumers to click through. Some institutions even give excessive loans to minors, school students, low-income groups, etc., conduct violent collections, pretend to be judicial agencies, and malicious collections, targeting borrowings. The collection of relatives and friends caused a series of family and social problems.
Do not "finance loans with loans" or "long-term loans"
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.
At the same time, it is necessary to use loan products rationally, and do not "finance loans with loans" or "long-term loans."
The risk warning points out that 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”.
In addition, we must choose formal institutions and formal channels for borrowing.
Attention should be paid 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.
Text/Reporter Cheng Jie