Zhongxin Finance, March 14, China Banking and Insurance Regulatory Commission issued the "Risk Alert on Beware of Excessive Lending Marketing Induction" on the 14th, reminding consumers to stay away from the trap of excessive lending marketing and prevent excessive credit risks.
At present, personal consumer credit services such as credit cards and micro-credit are deeply bound to various consumption scenarios, which facilitates life to a certain extent and reduces immediate payment pressure. However, if consumers use consumer credit frequently and superimposedly, it is easy to cause excessive debt , credit damage and other risks.
In recent years, there have been complaints from consumers about excessive credit extension, high credit card installment fees or liquidated damages, and violent collection.
In addition, some merchants induce consumers to prepay by loans or overdrafts, and then they cannot continue to operate due to various reasons. As a result, consumers not only cannot enjoy the services they have purchased, but also face repayment pressure and difficulties in safeguarding their rights.
In this regard, the Consumer Rights Protection Bureau of the China Banking and Insurance Regulatory Commission issued the second consumer risk warning in 2022, reminding consumers to stay away from the trap of excessive lending and marketing and prevent excessive credit risks.
The first is to induce consumers to handle loans, credit card installments and other businesses, infringing on consumers' right to know and their right to choose.
Be wary of confusing concepts in the marketing process and inducing consumers to use credit loans and other behaviors, for example, packaging micro-loans and credit card installment services with words such as “preferential”; Others deliberately induce consumers to choose credit payment methods during the payment process.
If consumers do not have a strong awareness of self-protection and risk prevention, and do not pay attention to reading contract terms and authorization content, the signing and authorization process is relatively random, and they are easily induced to apply for loans, credit card installments and other businesses.
The second is to induce consumers to consume in advance.
Using big data information and accurate tracking, after some institutions tap users' "consumption needs", they ignore the actual situation of consumers' comprehensive credit line, repayment ability, and repayment sources, and over-market and induce consumers to spend ahead of time, causing consumers to appear Risks such as excessive credit and debt beyond one's ability to afford.
Consumers should know that after using consumer credit services, they need to repay the principal and interest on time according to the contract. Interest and fees such as credit card installments and credit loans may not be preferential, and the comprehensive loan cost calculated at the annualized rate may be very high. Credit can easily lead to excessive debt.
The third is to induce consumers to use consumer loans for non-consumption areas.
Inducing or acquiescing some consumers to use consumer credit funds such as credit cards and microfinance for non-consumption fields, such as buying houses, investing in stocks, managing wealth, and repaying other loans, disrupted the normal order of the financial market.
Consumers who illegally transfer funds obtained from consumer credit to non-consumption fields will eventually bear the corresponding consequences.
Fourth, excessive collection of personal information, infringing on consumers' personal information security rights.
Some financial institutions and Internet platforms do not properly protect consumers' personal information when conducting related business or cooperative business, such as obtaining authorization by default consent, general authorization, etc.; using personal information without consumers' consent or against their wishes. Use for purposes other than credit card business and consumer credit business; improperly obtain external consumer information, etc.
The above acts of excessive collection or use of consumers' personal information violate consumers' personal information security rights.
In response to the above problems, the Consumer Rights Protection Bureau of the China Banking and Insurance Regulatory Commission reminds consumers to understand the relevant policies and risks of consumer credit, prevent excessive credit overdraft consumption risks, improve legal awareness, and protect legitimate rights and interests.
1. Adhere to the consumption concept of living within our means, and use credit cards, micro-credit and other services reasonably
According to their own income level and consumption capacity, do a good job of income and expenditure planning.
Use consumer credit services such as credit cards and small loans in a reasonable and compliant manner, understand the instalment business, the annualized interest rate of loan products, actual costs and other comprehensive borrowing costs, and make reasonable use of consumer credit products on the basis of not exceeding the affordability of individuals and families Support, develop good consumption and repayment habits, and establish a scientific and rational concept of debt, consumption and financial management.
2. Obtain credit services from formal financial institutions and formal channels, and do not use consumer credit for non-consumption fields
Establish a sense of responsible borrowing, do not overspend and over-indebted without restraint, and choose formal institutions to handle financial services such as loans.
Be vigilant of measures such as lowering the loan threshold and concealing the actual interest and fee standards in loan marketing and publicity.
In particular, it is necessary to improve the awareness of risk prevention, not to believe in false propaganda of illegal online lending, and to stay away from predatory loans such as bad campus loans and routine loans.
Consumer credit funds such as credit cards and microfinance should not be used in non-consumption fields such as purchasing real estate, investing in stocks, wealth management, and repaying other loans.
3. Raise awareness of personal information protection
Raise awareness of protecting your legitimate rights and interests in the process of consumption.
Carefully read the contract terms, do not sign authorization at will, and pay attention to keep important personal documents, account passwords, verification codes, face recognition and other information.
Do not arbitrarily entrust others to sign agreements, authorize others to handle financial business, and avoid giving opportunities to criminals.
Once you find any violation of your legitimate rights and interests, you must promptly choose legal channels to protect your rights.
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