China News Service, Beijing, December 16th (Reporter Wang Enbo) China Banking and Insurance Regulatory Commission issued the "Notice on Further Promoting the Standardized and Healthy Development of Credit Card Business (Draft for Comment)" on the 16th, calling for strengthening the governance of excessive credit card credit and urging the transformation of the extensive development model of credit cards .
The person in charge of the relevant department of the China Banking and Insurance Regulatory Commission stated that in recent years, the credit card business of China's banking financial institutions has developed rapidly, which has played an important role in facilitating payment and daily consumption of the people.
However, in the recent period, some banks have extensive business concepts, weak service awareness, inadequate risk control, and violations of the legitimate rights and interests of customers.
For example, some banks have unclear disclosure of interest and fee levels, unilaterally promote low interest rates and low fee rates, charge interest in disguise in the name of handling fees, obscure actual usage costs, and unreasonably set a low or no starting point for bill installment. Customers independently confirm the implementation of automatic installment and other issues, which increase the difficulty for customers to accurately understand and judge the cost of credit card use, and even increase the burden of interest on customers.
The "Notice" requires that banks should effectively improve the standardization and transparency of credit card interest management, and show that the cost of using instalment business funds is uniformly in the form of interest.
The total amount of interest and fees borne by defaulted or overdue customers shall not exceed their corresponding principal.
The minimum starting amount and maximum amount of instalment business should be clarified, and the interest burden of customers should not be increased by inducing excessive use of instalments.
In view of the imprudent control of credit card credit of some banks, the inability to rigorously evaluate the credit status of customers, causing problems such as excessive credit, increasing operating risks, and unreasonably increasing the level of customer leverage, the "Notice" requires banks to reasonably set the upper limit of the total credit line of a single customer's credit card .
When approving and adjusting credit lines, customers should deduct the accumulative credit lines of credit cards that customers have already obtained from other institutions to prevent unreasonable overlapping of credit lines between banks.
In addition, some banks have unscientific business concepts, blindly pursue economies of scale and market share, and have outstanding card issuance and repeated issuance, leading to problems such as disorderly competition and waste of resources.
The "Notice" requires banks not to use the number of cards issued and the number of customers as a single or main assessment indicator. The ratio of long-term sleep credit cards must not exceed 20%. Banks that still exceed this ratio after the rectification shall not issue new cards.
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