Zhongxin Finance, January 20, Routine loans, illegal fundraising, "routine insurance"... In response to various "routine" marketing behaviors, on the 20th, the Consumer Rights Protection Bureau of the China Banking and Insurance Regulatory Commission issued the first issue of risk warnings in 2022 to remind consumers Pay attention to prevent such "routine" behaviors that infringe on financial consumers' right to know, right to choose, right to fair trade, and right to property security.

  In the risk warning, the China Banking and Insurance Regulatory Commission summarized four types of "routine" marketing behaviors:

1. "Routines" such as one-sided information disclosure and concealment of product risks infringe on consumers' right to know

  In loan marketing, we must be wary of marketing and publicity behaviors similar to "routine loans", such as opaque interest charges, deliberately blurring borrowing costs, not showing annualized comprehensive capital costs, and arrangements for repayment of principal and interest.

Some borrowers have been charged high fees without knowing it, and the so-called "zero interest" is a misnomer.

For example, some borrowers have suffered a beheading interest, and some have found that they have to pay guarantee fees, service fees, insurance fees, etc. after taking out a loan. The real loan cost is very high.

  In insurance marketing, "routine insurance" behaviors, such as the pre-payment of premiums, and the incremental increase, are also induced in the name of "preferential".

For example, one-sided promotion of "0 yuan in the first month", "1 yuan in the first month", "free collection", and "zero down payment" and other routines give people the illusion of discounts. In fact, the premiums are distributed to the later period, and consumers do not really enjoy the premium discounts. .

In addition, there are hype of "limited sales, limited time, limited amount", false and inaccurate introduction of product responsibilities, functions and insurance periods, or misleading sales such as publicizing the sale of insurance products in the name of bank deposits, wealth management products and other financial products.

Because of the so-called "free" and "limited time" routines, some consumers have been misled into buying insurance products that they do not need or even understand at all.

2. Hidden "routines" in Internet interface settings infringe on consumers' right to choose

  At present, it is very common to purchase financial products and use financial services through the Internet.

Some institutions hide various "routines" on their Internet pages, setting up obstacles for consumers to make their own choices, making some elderly consumers unfamiliar with the use of smart devices, consumers who are not sensitive to the risk pricing of financial products, or lack of rational consumption concepts. Consumers are more likely to be "routine".

  For example, in Internet scenarios such as shopping, media, social networking, games and other Internet scenarios, lending products are flooded with advertisements. The platform directly provides loan services or diverts traffic to the loan business to complete traffic realization, and induces consumers to give priority to consumer credit in product promotion, display or payment. .

Another example is that some Internet insurance marketing advertisements have irregular and unclear settings on the interface, and induce consumers to select options such as "receive protection" and "automatic renewal" on the page.

In addition, there are platforms that bundle and tie sales by default check, mandatory check, etc., forcing consumers to purchase non-essential products or services.

3. Improper Internet loan marketing induces "routines" to infringe on consumers' right to fair trade

  Some institutions or platforms analyze and abuse consumer behavior data based on their own advantages in big data resources to guide or even manipulate consumer demand, such as blindly inducing consumers regardless of their comprehensive credit line, repayment ability, repayment source, etc. Borrowing, indebtedness, and over-consumption, the improper use of dominant positions to induce consumers' behaviors also infringe on consumers' right to fair trade to a certain extent.

4. Routine loans, illegal fundraising, fraud and other illegal and criminal "routines" infringe on consumers' property security rights

  Routine loans, illegal fundraising, fraud and other illegal and criminal activities are also constantly changing their vests. In the name of financial innovation and financial services, they have seriously disrupted the financial market order and endangered the property safety of the people.

  For example, there are routine loans in the name of "entrepreneurship", "job hunting", "beauty", etc., under the disguise of providing employment, training, medical and aesthetic services, etc., school students, job seekers or blindly pursuing high consumption groups are more likely to be deceived.

There are also criminals who solicit business in the name of "surrender and wealth management" and "surrender by proxy", instigating or tricking consumers into entrusting their surrender normal insurance to buy so-called "high-yield" wealth management products, and even intercepting and occupying consumers' surrender funds, hiding them. Fundraising fraud risk.

There are also criminals who take advantage of the eagerness of some creditors and debtors to solve their difficulties and recover their funds, and charge high service fees in the name of debt resolution, debt counseling services, etc. In fact, they are real charges and illegal fundraising or financial fraud.

  In response to the above-mentioned risks or problems, the China Banking and Insurance Regulatory Commission stated that it will continue to improve the system, strengthen supervision, and cooperate with relevant units to jointly manage and effectively rectify behaviors that break the moral bottom line and ignore the interests of the masses.

  In addition, the China Banking and Insurance Regulatory Commission also reminds consumers to increase their awareness of risk prevention from the following four aspects to prevent "routine" marketing behaviors from infringing on their rights:

1. Be alert to false propaganda such as concealing risks and obfuscating expenses, and purchase financial products according to your own risk tolerance and needs.

All loan products shall clearly state the annualized interest rate of the loan; insurance products shall specify important matters such as insurance responsibilities, exclusions, premium payment, insurance compensation or payment, etc. that affect the decision-making of insurance.

Consumers should purchase financial products or services from formal institutions and regulated channels according to their own needs and spending power.

Be vigilant of covering up risks and concealing interest charges in marketing, and don’t rashly buy unfamiliar and unnecessary financial products just because of “free”, “zero down payment”, “limited time” and other marketing and publicity routines.

2. Be alert to the risk of excessive debt, and use personal consumption credit loans in a reasonable and compliant manner.

Borrowing has costs. We should adhere to the concept of moderate debt and rational consumption, develop good consumption and repayment habits, and do not consume excessively and excessively indebted.

On the basis of not exceeding one's own affordability, rationally give play to the consumption support role of consumer credit products.

Establish a sense of integrity, and use personal consumer credit loans such as installments and micro-loans for non-consumption areas such as wealth management, investment, house purchase, and loan repayment, and avoid “supporting loans with loans” and “supporting cards with cards”.

It is even more necessary to stay away from predatory loans such as campus loans and illegal routine loans in the name of "entrepreneurship", "job hunting" and "beauty".

3. Be vigilant of illegal "agent rights protection" infringement, be cautious about important links such as signature and authorization, and choose reasonable and legal ways to protect rights.

Raise awareness of protecting your legitimate rights and interests, and be cautious about important links such as signing, authorization, and payment.

Be sure to read the terms of the contract to make sure you understand the financial services agreement you are signing or authorizing.

If you have any objection to a product or service, you can report it through normal complaint channels, and do not participate in malicious complaints that violate the contract, provide false information, or fabricate facts, and do not believe in "surrendering financial management" and other rhetoric.

4. Be alert to fraudulent infringements in the name of "debt service", correctly view and solve debt problems in accordance with the law.

Don't be fooled by rhetoric such as "solving debts and going ashore", and prevent secondary infringements of illegal fund-raising and fraud in the name of debt resolution.

Once you find clues about suspected violations and crimes, you can promptly report the case to the public security organs or report to the relevant financial regulatory authorities.