Credit card "raise card" cash disorder investigation
overdraft consumption "repay with loan" "use card to raise card" illegal use of loans for non-consumer areas
● Some consumers are over-reliant on credit card overdrafts, falling into the situation of “repaying loans with loans” and “supporting cards with cards”, which leads to tight funds and repayment pressures. Some consumers use credit card loans illegally for non-real estate, securities, etc. In the consumer field, magnifying capital leverage can easily lead to unsustainable personal or family finances, and it can also cause financial institutions to accumulate risks
● Consumers should correctly understand the function of credit cards, rationally overdraft consumption, do not "support cards with cards", "repay loans with loans", and don't use "short-term borrowing for a long time", and reasonably play the role of consumer support for credit card and other consumer loan tools
● To solve the problem of cashing out credit cards, in addition to building a comprehensive legal prevention and comprehensive governance project such as relevant legal systems and acquiring specifications, it is more important to increase the enforcement of credit card supervision
□ Our reporter Zhao Li
□ Qin Huamin, an intern in this newspaper
On June 29, the Consumer Rights Protection Bureau of the China Banking and Insurance Regulatory Commission issued the 2020 Risk Alert No. 4 to remind consumers that they should correctly understand the functions of credit cards, use credit cards reasonably, establish a scientific concept of consumption, rational consumption, and moderate overdraft.
The China Insurance Regulatory Commission said that in recent years, the credit card business has developed rapidly and has become an important part of the bank’s retail business. It has played an active role in promoting residents’ consumption and facilitating residents’ lives, but the problems in the process of using credit cards have also become increasingly prominent.
Recently, a reporter from the Legal Daily found that some consumers have over-relied on credit card overdrafts and carried large credit card loans that exceeded their repayment ability. They even fell into the situation of "repaying loans with loans" and "supporting cards with cards", resulting in funds. Tension, double repayment pressure and other issues; some consumers use credit card borrowing illegally in non-consumption areas such as real estate, securities, funds, financial management, etc., and magnifying capital leverage can easily lead to unsustainable personal or family finances and will bear corresponding consequences. It also causes financial institutions to accumulate risks.
Over-reliance on overdraft consumption
Fund raising by card raising
On June 9, the “General Situation of Payment System Operation in the First Quarter of 2020” released by the People’s Bank of China showed that the total credit outstanding for credit cards overdue for half a year was 91.875 billion yuan, accounting for 1.27% of the credit card credit balance. As of the end of the first quarter of this year, the total amount of outstanding credit overdue for half a year has approached the highest amount in two years.
"Legal Daily" reporters found that some consumers avoid the repayment of credit cards by "using a card to maintain cards", that is, by processing credit cards of different institutions and using different repayment dates to achieve repayment.
Ms. Zhang, a citizen of Chongqing, has been using the “card-supporting card” method for repayment for almost five or six years. She has applied for different credit cards at three banks and realized the credit card repayment and transactions of different banks through POS machines purchased by herself. There is no need to withdraw cash, just use a POS machine to bind a savings card, and use the savings card to realize the consumption and repayment of different credit cards. The monthly repayment fund is about 10,000 yuan.
"Each month's repayment date is when I am most anxious. I am afraid that I will be blacklisted if I miss the repayment date." Ms. Zhang said.
Similar to the "card-based card" method, consumers also use credit cards to enter and exit bills, and postpone this month's money until the next month's repayment or indefinitely.
"Legal Daily" reporter found that there are a lot of posts on the Internet similar to "how to use 500 yuan to pay 10,000 credit card bills." Such posts say that as long as consumers are on any day between the credit card payment date and the repayment date, any payment will be regarded as repayment, and any payment will be counted into the next month's bill . The post said, for example, if there is a credit card that needs to pay 10,000 yuan, but only 500 yuan in hand. At this time, it is only necessary to deposit 500 yuan between the payment date and the repayment date, and then use the third-party platform to brush it out. For every operation, the 500 yuan deposited will be counted as a repayment, and the 500 yuan credited will be counted towards the next month's bill. 20 times back and forth, you can pay off your credit card bill.
Regarding such repayment methods, industry insiders believe that this measure will not cure the symptoms, and that the 10,000 yuan credit card arrears have not been paid off. "It just delayed the arrears of this month until next month. In addition, Cardholders also need to pay a certain processing fee to the payment platform, and about 10,000 yuan will cost about 75 yuan."
The risk warning document issued by the Consumer Insurance Bureau of the China Banking Regulatory Commission also stated that consumers should correctly understand the functions of credit cards and rationally overdraft consumption. The role of consumer support for consumer credit instruments such as credit cards.
Spread a variety of cash
Hidden and difficult to find
Recently, several commercial banks adjusted the credit card credit rules, and the People’s Bank of China also sought comments from the public on the “Notice on Strengthening the Management of Payment Acceptance Terminals and Related Businesses (Draft for Comment)”. These adjustments have aroused the community's attention to credit card cashing.
The so-called credit card cashing means that the cardholder does not withdraw cash through normal legal procedures (ATM machine or bank counter), but uses other non-legal means to withdraw the credit limit in the card in cash, while not cashing out to the bank The act of paying withdrawal fees.
It is understood that at present, there are a variety of cash-out methods on the market, some of which use two-dimensional code scanning codes to obtain cash from third-party payment platforms, some obtain cash by swiping POS machines, and use third-party software to consume credit cards. Cash back to consumers, etc.
"Legal Daily" reporter learned on a credit card cashing website that consumers can choose virtual goods corresponding to their own cash amount, and then use credit cards to pay as required. After the transaction is completed, the relevant personnel will transfer the balance after deducting the handling fee to the "casher" through cash transfer. Throughout the cash-out process, consumers have not purchased any products in a practical sense.
At the same time, a reporter from Legal Daily noticed that there are also many credit card cash-out advertisements in the WeChat circle of friends. Some people claimed that they could use credit cards to withdraw cash, starting at 800 yuan.
Beijing citizen Zhang Dan (pseudonym) made a similar transaction. One day, Zhang Dan saw a credit card cash-out advertisement in the WeChat Moments, and he just needed another sum of money, and he expressed his willingness to cash out to the other party. After communication, Zhang Dan paid 2,000 yuan to the designated account according to the request of the other party, and was immediately informed that "the system is currently in error and cannot be withdrawn at the moment." The other party told Zhang Dan to try again in a few days to see if they can cash out successfully. However, a few days later, when Zhang Dan asked about the cash withdrawal situation again, he was informed that the merchant had "run away" and suggested that he call the police.
"Legal Daily" reporters found that such scammers generally use the software to add friends in batches to add the victim as a friend for various reasons, and then publish cashing information in various channels through the circle of friends, with low handling fees, quick withdrawals, etc. Copywriters entice netizens to contact them. In addition, they will also publish some screenshots of successful transactions with customers and praised by customers to increase their credibility. When the victim pays, they will find various reasons to postpone the withdrawal, or directly blackmail the victim.
An online merchant told the "Legal Daily" reporter that when they provide customers with payment methods such as credit cards, they need to provide certain fees to banks or related financial institutions. In order to avoid paying this fee, many merchants are reluctant to provide credit cards, spend payment and other methods. In addition, for many young people, rent is not a small expense, and most landlord accounts are private accounts, which only support cash transactions or transfers. In this case, credit cards cannot meet the consumption in certain areas, and the legal withdrawal fees are relatively high, which leads to people using credit cards to cash out.
The Supreme People’s Court and the Supreme People’s Procuratorate of the Supreme People’s Procuratorate “Interpretations on Several Issues Concerning the Specific Application of Law in Criminal Cases that Hamper Credit Card Management”, which clarified “the use of point-of-sale terminal equipment (POS machines) and other methods to make fictitious transactions, If you pay cash directly to the credit card holder by way of false prices, cash returns, etc., and the circumstances are serious, you shall be convicted and punished with the crime of illegal business in accordance with the provisions of Article 225 of the Criminal Law."
According to Yin Zhentao, director of the Financial Technology Research Office of the Institute of Finance, Chinese Academy of Social Sciences, in the past, most people usually used POS machines to cash out credit cards, but because POS machines are the card ends of banks, they are often used to be easily found, and POS machines swipe cards. The handling fee is higher, so many people currently use the third-party payment channels such as QR code scanning and payment to achieve the same function. In addition, some people also use certain design mechanisms of credit cards to increase the cash-out limit. There are also a lot of people playing time to wipe the ball or use information networking between business platforms to find loopholes in the credit card mechanism. With the application of new technologies, the features of credit card cash out are more hidden and difficult to find.
Consumer credit is developing rapidly
The risks behind can not be ignored
In November 2019, the "Post-95 Credit Card Consumer Scenario Research Report" released by the Guangdong Development Bank shows that in recent years, under the influence of the Internet + new format, Internet consumer credit has risen rapidly. Internet consumer financial products launched by major e-commerce companies are emerging one after another. For example, Ant Huabei, Jingdong Baitiao, and Capricious Pay are popular among young people who love online shopping because of their low application threshold, simple procedures, and convenient use. "After the first attempt to credit consumption products.
Encouraged by capital and fintech, China's consumer credit market has ushered in an "explosion" development, and various credit institutions also tend to use younger "Generation Z" young people who relatively lack a stable source of income as business expansion. Object.
Information service company Experian believes that Internet consumer credit agencies categorically promote the concept of "long-tail customers" and "sub-optimal customers", and guide credit institutions to lower the loan threshold and sink the customer base; at the same time, the problem of co-debt is also getting worse. In order to delay the risk outbreak, some institutions cover up the stock risk through loan restructuring, borrowing new ones and returning old ones.
"In the process of using a credit card, consumers' main problem is that they do not understand the credit card, such as whether the annual fee is delivered, the consequences of arrears of the annual fee, etc. Therefore, consumers should fully understand the credit card interest settlement rules when applying for and using a credit card , Billing date, annual fee/default payment method, etc. In addition, consumers are excessively charged with personal sensitive information and even personal privacy information when applying for credit cards." Research on Financial Innovation and Internet Finance Legal System of China University of Political Science and Law Li Aijun, the director of the center, said in an interview with a reporter from Legal Daily that for commercial banks, there are mainly risk issues in issuing credit cards, risk issues for consumers, and risk issues for repayment.
Yin Zhentao also told reporters in the "Legal System Daily" that at present, in the process of personal credit card use, risks and illegal consumption issues are increasingly prominent. Especially in some groups of young people, there has been a rapid rise in personal leverage. They use the method of "using a card to keep cards" to alternately pay back by applying for credit cards of various institutions.
"This phenomenon is very obvious at present, it will not only accelerate the rise of personal leverage, but also increase the probability of default risk. Another problem is the crime around credit cards, which mainly focuses on the use of credit cards to cash out." Yin Zhentao said.
Strengthen prevention and comprehensive governance
Increase supervision and enforcement
Affected by the New Coronary Pneumonia epidemic, the credit card business of commercial banks in the first quarter of this year generally experienced a decline in card issuance and transaction volume, and an increase in overdue rates.
A number of industry sources interviewed said that in the short term, credit card loans are still in a period of risk exposure, but both the amount of cards issued and the amount of transactions are currently in a steady recovery process. At the same time, in order to cope with the impact of the epidemic, many banks have increased their efforts to promote credit card consumption on the one hand, and accelerated the recovery of production capacity on the other.
In fact, banks are more sensitive to risks. Recently, many banks have begun to use card blocking and derating to strictly control risks.
Recently, several credit card holders "spit" that they have recently received text messages from banks about derating notices, involving banks including large state-owned banks and joint-stock banks.
According to industry insiders, at present, the major banks are strengthening risk control of the whole process, and generally there is no large-scale or sudden derating of credit cards. However, as one of the normalized risk control measures, the bank will regularly adjust the quota of some high-risk customers, and implement a more prudent new customer access strategy and improve collection efficiency.
Regarding this risk warning from the Consumer Insurance Bureau of the China Insurance Regulatory Commission regarding the correct use of credit cards, Li Aijun believes that it is mainly due to the outbreak of complaints in the credit card field.
Li Aijun specifically analyzed: First, the credit card issuer's review and risk control of the application subject are in the form, and excessive reliance on the deterrence of criminal responsibility as a risk control method, did not seriously review the applicant's credit status and repayment ability; second, some The card issuing bank unilaterally adjusted the credit limit, and it is not clear to inform the service charges in advance; third, some card issuing banks carry out credit card preferential activities to set overlord terms, unilaterally change the rules of the activity, and cannot honor the preferential treatment, causing consumer dissatisfaction; fourth, Some card-issuing banks have problems such as inadequate performance of notification obligations, irregular marketing and promotion, irregular card issuance management, and outsourcing management.
"This risk warning is mainly aimed at the two prominent issues of risky consumption and illegal consumption. It is to guide ordinary financial consumers to use credit cards reasonably, including lever control and understanding of the functions of credit cards, that is, it is an installment payment The function of investment, not the function of investment and financial management, is not a function of borrowing." Yin Zhentao said.
Many bank practitioners said that, despite the short-term impact of the epidemic, in recent years, with the deepening and accelerated application of various financial technology methods, banks have also become more accurate in identifying risk to individual customers.
The above-mentioned risk warning document issued by the Consumer Insurance Bureau of the China Banking Regulatory Commission also pointed out that if the credit card is in arrears or arrears in annual fees, it will generate interest costs and may also affect personal credit reporting. When using a credit card for consumption, consumers should plan their funds reasonably and arrange and manage personal or family funds.
In Yin Zhentao's view, the regulatory framework and rules in the field of consumer finance are relatively rich and complete, and credit card use groups are of higher quality than other consumer installment groups. "In the entire governance process, violations and precautions are the problem of spears and shields. Although the shield is strong, the spear will increase its offensiveness."
Yin Zhentao suggested that in order to solve the credit card cashing problem, in addition to building a comprehensive legal prevention and comprehensive governance project such as the relevant legal system and acquiring specifications, it is more important to increase the enforcement of credit card supervision.
"In the past two years, there have been a lot of fines around credit cards. This is actually increasing the cost of violating the law, thereby restricting the relevant subjects. Of course, in this process, more and more new products will be gradually introduced according to the new situation and new technologies. Regulatory documents or increased penalties can also be regulated using window guidance and other methods." Yin Zhentao said.
Cartography/Li Xiaojun