China Banking and Insurance Regulatory Commission Consumer Protection Bureau warns against risks induced by excessive lending marketing.

　　On March 14th, China Banking and Insurance Regulatory Commission website posted a warning about the risk induced by excessive lending marketing: At present, personal consumer credit services such as credit cards and micro-credit are deeply bound with various consumption scenarios, which facilitates life and reduces the immediate payment pressure to a certain extent. However, if consumers use consumer credit frequently and superimposed, it will easily lead to risks such as excessive debt and damaged credit information. In recent years, there have been complaints from consumers about excessive credit granting, high credit card installment fees or liquidated damages, and violent collection. In addition, some merchants induce consumers to prepay their expenses by means of loans or overdrafts, but they cannot continue to operate for various reasons, resulting in consumers not only being unable to enjoy the services they have already purchased, but also facing repayment pressure and difficulties in safeguarding their rights. In response, the Consumer Protection Bureau of China Banking and Insurance Regulatory Commission, China issued the second consumer risk warning in 2022 to remind consumers to stay away from the marketing trap of excessive lending and prevent excessive credit risk.

　　One is to induce consumers to handle loans, credit card installment and other businesses, infringing on consumers’ right to know and their right to choose independently. Beware of confusing concepts in the marketing process and inducing consumers to use credit loans, for example, packaging microfinance and credit card installment services with "concessions" and other rhetoric; Or the price publicity is opaque, and the annualized interest rate of loans or installment services is not clearly stated; Others deliberately induce consumers to choose credit payment methods during the payment process. If consumers do not have a strong sense of self-protection and risk prevention, and do not pay attention to reading the contract terms and authorization contents, the signing authorization process is more casual, and it is easy to be induced to handle loans, credit card installment and other businesses.

　　The second is to induce consumers to spend in advance. Using big data information and accurate tracking, some institutions, after tapping the "consumer demand" of users, over-market and induce consumers to spend ahead of time, regardless of the actual situation of consumers’ comprehensive credit line, repayment ability and repayment source, resulting in consumers’ risks such as excessive credit and debt exceeding their personal affordability. Consumers should know that after using consumer credit services, they need to repay the principal and interest on schedule according to the contract. Interest rates such as credit card installment and credit loan may not be preferential. The comprehensive loan cost calculated at annualized rate may be high, and excessive credit may 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 micro-credit for non-consumption areas, such as buying houses, trading stocks, managing money and repaying other loans, has disrupted the normal order of the financial market. Consumers who illegally flow the funds obtained from consumer credit to non-consumer areas will have to bear the corresponding consequences, and it is not advisable to "support loans with loans" or "support cards with cards".

　　Fourth, excessive collection of personal information infringes on consumers’ right to personal information security. Some financial institutions and internet platforms fail to protect consumers’ personal information when carrying out related business or cooperative business, such as obtaining authorization by default consent and general authorization; Using personal information for purposes other than credit card business and consumer credit business without the consent of consumers or against their wishes; Improper access to consumer external information, etc. The above-mentioned excessive collection or use of consumers’ personal information infringes on consumers’ right to personal information security.

　　In view of the above problems, the Consumer Protection Bureau of China Banking and Insurance Regulatory Commission, China reminds consumers to understand the relevant policies and risks of consumer credit, guard against excessive credit overdraft consumption risks, raise legal awareness and protect legitimate rights and interests.

　　First, adhere to the concept of living within our means, and rationally use credit cards, microfinance and other services.

　　According to their own income level and spending power, do a good job in revenue and expenditure planning. Use consumer credit services such as credit cards and micro-loans reasonably and legally, understand the comprehensive borrowing costs such as installment business, annualized interest rate of loan products, actual expenses, etc., give full play to the consumption support role of consumer credit products on the basis of not exceeding the affordability of individuals and families, develop good consumption repayment habits, and establish a scientific and rational view of debt, consumption and financial management.

　　Two, obtain credit services from formal financial institutions and formal channels, and do not use consumer credit for non-consumption areas.

　　Establish a sense of responsible lending, don’t go beyond consumption and excessive debt, and choose formal institutions to handle financial services such as loans. Be wary of lowering the loan threshold and concealing the actual interest and fee standards in loan marketing propaganda. In particular, we should raise awareness of risk prevention, not believe in illegal peer-to-peer lending false propaganda, and stay away from predatory loans such as bad campus loans and routine loans. Do not use consumer credit funds such as credit cards and microfinance for non-consumer areas such as buying real estate, stock trading, wealth management and repaying other loans.

　　Third, improve the awareness of protecting personal information security

　　Improve the awareness of protecting their legitimate rights and interests in the process of consumption. Read the terms of the contract carefully, do not sign the authorization at will, and pay attention to keeping important personal documents, account passwords, verification codes, face recognition and other information. Do not arbitrarily entrust others to sign agreements or authorize others to handle financial business, so as to avoid giving criminals an opportunity. Once violations of their legitimate rights and interests are discovered, they should choose legal channels to safeguard their rights in time.