New credit card regulations are introduced. These regulations concern you and me
2022-07-18
The China Banking and Insurance Regulatory Commission and the people's Bank of China issued the "notice on further promoting the standardized and healthy development of credit card business" on the 7th, focusing on rectifying the chaos in the credit card market and effectively protecting the legitimate rights and interests of financial consumers. This new regulation will have an important impact on how you and I open and use cards. Standardize the collection of credit card interest and fees There are many charges for credit card business, including annual fee, handling fee, interest, liquidated damages, etc. In practice, some banks have some problems, such as unilaterally promoting low interest rates and low rates, charging interest in disguised form in the name of handling charges, and blurring the actual use costs. In this regard, the notice requires banking financial institutions to effectively improve the standardization and transparency of credit card interest and fee management, strictly perform the obligation to explain interest and fee in the contract, and show the maximum annualized interest rate level in an obvious way. Installment business is a field with more "routines" in credit card business. Cardholders often receive suggestions of repayment by installments from banks when swiping their cards. The words "interest free" and "zero interest rate" are exciting. But in fact, banks usually charge a certain handling fee for the installment repayment business. The notice requires that banking financial institutions must clearly display all interest and fee items, annualized interest rate levels and interest and fee calculation methods that may be generated by the phased business on the first page of the phased business contract (agreement). When displaying the cost of using funds collected by installment business, it should be in the form of interest, not in the form of handling charges. At the same time, the notice requires that banking financial institutions should clarify the minimum starting amount and the maximum amount of installment business; The fund balance that has been amortized shall not be amortized again; The term of installment business shall not exceed 5 years. In addition to strictly regulating the collection of interest and fees, the notice also clearly requires banks to continue to take effective measures to actively promote the reasonable decline of credit card interest and fees on the premise of legal compliance and effective risk coverage. The proportion of long-term sleep card shall not exceed 20% In recent years, in the rapid development of credit card business, some banks have blindly pursued market share, indiscriminately issued cards and repeatedly issued cards, resulting in disorderly competition, resource waste and other problems. The notice puts forward strict regulations on the management of card issuance, requiring banking financial institutions not to directly or indirectly take the number of cards issued, the number of customers, market share or market ranking as a single or main assessment index. Strengthen the dynamic monitoring and management of sleep credit cards, and the proportion of the number of long-term sleep credit cards with no customers' active transactions for more than 18 consecutive months, the current overdraft balance and zero excess payment in the total issuance of this institution shall not exceed 20% at any time point. Banks exceeding this proportion shall not add new cards. "In recent years, many banks have actively transformed to retail business, and credit card, as an asset business, is generally regarded as the entry point and focus. However, in the process of business development, there has also been a management model that simply takes the number of cards issued and the number of customers as assessment indicators, resulting in short-term business." Zeng Gang, director of Shanghai finance and development laboratory, said. The head of the relevant department of the China Banking and Insurance Regulatory Commission said that in the future, the limit standard for the proportion of long-term sleep credit cards will be dynamically reduced, and the industry will continue to be urged to reduce the proportion of sleep cards to a lower level. Set the upper limit of the total credit line of a single customer Excessive credit is also a high incidence problem in the field of credit cards. In the face of fierce market competition, increasing the credit line is usually a means for banks to compete for customers. The notice requires that banking financial institutions should reasonably set the upper limit of the total credit line of a single customer's credit card, and incorporate it into the unified management of the customer within all the credit lines of the institution. In the process of credit approval and adjustment of credit line, the accumulated credit line of credit card obtained by other institutions shall be deducted. Dongximiao, chief researcher of Zhaolian finance, said that some cardholders need to pay attention to the problem of "keeping cards with cards" and illegal cash out. Commercial banks should reduce long credit, strictly control excessive credit and prevent the risk of credit card debt. Pilot online credit card business While cracking down on the chaos, the notice gives sufficient space for credit card business innovation. It is clearly proposed to explore innovative models such as online credit card business through pilot projects in accordance with the principles of controllable risk, stability and order. "Carrying out online credit card business will become an important attempt for commercial banks to deepen digital transformation and accelerate the deep integration and innovation of Finance and science and technology." Gao Feng, chief information officer of the China Banking Association, said that the key link in developing online credit card business is remote face-to-face signing. We should do a good job in the screening of target customers, remote video technical support and online business process control. It is understood that the regulatory authorities will, in accordance with the guidance of high-quality development, give priority to the banking financial institutions with high recognition and trust of people's services, the protection of consumer rights and interests and the requirements of letters and visits will be implemented in place, the business philosophy and risk control compliance will be prudent and strict, and all rectification work will meet the regulatory indicators to participate in the pilot. (Xinhua News Agency)
Edit：Li Jialang Responsible editor：Mu Mu
Source：xinhuanet
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