Be wary of online platforms inducing excessive borrowing (financial staff)
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.
In response, the Consumer Rights Protection Bureau of the China Banking and Insurance Regulatory Commission issued a risk reminder 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 wary of excessive lending marketing.
The relevant person in charge of the China Banking and Insurance Regulatory Commission said that some institutions or online platforms unilaterally emphasized conditions such as low daily interest rates, interest-free periods, and zero-interest instalments when promoting.
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 deliberately obscures the actual cost of borrowing, which can easily lead to misunderstanding or understanding and infringe consumers' right to know.
Some institutions excessively promote the concept of loan consumption and advanced enjoyment in various consumption scenarios, which can easily induce consumers to consume unrestrainedly, especially those with weak financial knowledge and teenagers with no stable income sources.
In addition, some online platforms excessively collect and abuse customer information, and even circulate customer information among platform parties, lending institutions, investors, etc., without the knowledge of consumers, infringing on consumer information security rights.
In this regard, the Consumer Rights Protection Bureau of the China Banking and Insurance Regulatory Commission reminded consumers to stick to the actual needs, establish a rational consumption concept of living within their means, and stay away from the trap of excessive borrowing and consumption marketing.
——Consume rationally and live within your means.
Consumers should recognize the content of loan products, correctly assess their own economic affordability, and avoid reckless borrowing and blind consumption behavior. Certain marketing over-proclaimed "borrowing consumption" and "advanced enjoyment" behaviors are not worthy of advocacy and imitation.
Excessive borrowing often leads to a cut-off of funds and puts consumers and families in trouble.
——Reasonable borrowing, do not “finance loans with loans” or “long-term borrowings”.
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. "Interest" and other one-sided publicity.
Give full play to the role of lending products, establish a responsible borrowing awareness, and do not over-rely on borrowing for consumption, let alone “financing loans with loans” or “long-term borrowing”.
——Choose formal institutions and formal channels for borrowing.
Attention should be paid to checking whether relevant institutions have business qualifications, choosing formal institutions and formal channels to obtain financial services, and preventing illegal financial activities.
Be vigilant against phone calls, links, and e-mail sales from unknown sources, do not click on unknown links at will, and do not provide important personal information on suspicious websites to prevent fraud and personal information leakage.
Our reporter Qu Xinming and Ouyang Jie