The central banks consumer Insurance Bureau issued documents to remind five high risk areas of credit card risk

category:Finance
 The central banks consumer Insurance Bureau issued documents to remind five high risk areas of credit card risk


Credit card complaints account for more than 40%

According to the report on the operation of the payment system of the second quarter of the central bank, the total outstanding credit of the overdue half year of the credit card exceeded 80 billion yuan, reaching 83.884 billion yuan, an increase of 5.19% on a month on month basis, accounting for 1.17% of the balance of credit card payable credit.

The central banks consumer Insurance Bureau summarized the acceptance of 12363 complaint calls from January to September 2019, which showed that the number of bank card complaints received accounted for 29.46% of the total number of complaints, a year-on-year increase of 16.46%.

According to the data reported by the national banking financial institutions, from June to August 2019, bank card business complaints accounted for 57.08% of the total complaints, of which credit card complaints accounted for 35.85% of the total complaints; debt collection complaints accounted for 8.28% of the total complaints, of which debt collection complaints involved in credit cards accounted for 6.85% of the total complaints; and the total credit card complaints involved accounted for 42.71% of the total complaints.

The central banks consumer Insurance Bureau said there were four main reasons for the outbreak of complaints in the credit card sector:

First of all, some card issuing banks pursue credit card growth unilaterally and reduce card issuing conditions. They fail to carefully review the credit status and repayment ability of applicants, and risk control is just a formality.

Secondly, when the consumer has overdue repayment, the card issuing banks collection behavior is simplified and rough;

Third, some issuers unilaterally adjust the credit limit, and the service charge notice prompt is not clear in advance;

Finally, some issuers set up overlord clauses in credit card preferential activities, and unilaterally changed the rules of activities to avoid the realization of rights and interests.

Five high risk areas

Many consumers are confronted with many ways of using cards. According to the complaints and supervision, the consumer Insurance Bureau of the peoples Bank of China summed up five areas with high incidence of violations in the field of credit cards:

Format contracts infringe on the legitimate rights and interests of financial consumers. For example, use personal financial information for marketing, and ask for authorization of personal financial information unrelated to credit card business in the form of general authorization; reduce the banks obligation of information confidentiality through format terms; even if some banks credit cards are not activated, as long as the banks approval is passed, customers need to pay annual fees, cost fees and other fees; for those involving credit card charges, late fees The terms such as gold and personal financial information authorization are not prominently indicated These common ways of handling and using cards belong to the performance of contract infringing the legitimate rights and interests of consumers.

The obligation of informing by credit card is not fulfilled properly. The banks playing smart practice of only making announcement through business outlets or websites for changing important information such as credit card points accumulation rules, clearing credit card points, and changing credit card annual fee preferential standards is clearly defined as violation; inadequate reminding and informing of special groups, such as causing the elderly to use credit cards as savings cards, is also violation.

In addition, even if the bank has fulfilled its obligation of informing, the way of informing can not be achieved if the bank deliberately plays the side ball. For example, in order to upgrade the credit card, a bank sends a message to the customer, if there is no need to upgrade, please reply no, and then upgrades the customer unilaterally. This practice of consent without express refusal is also regarded as a violation.

The marketing propaganda is not standard. It is illegal for banks to use personal financial information for marketing promotion without authorization of customers and send marketing SMS to customers (even after customers close their accounts). It is worth mentioning that it is also a violation to state only the rights and interests that consumers can enjoy but not the preconditions or restrictive conditions.

The card issuing management is not standardized. There are two major violations: one is that the card issuing process is not standardized, for example, the bank does not attach the applicants credit certification materials, but the notes of different application forms are obviously similar, which means that the card issuing bank fails to effectively perform the personal visit and signature; the other is that it violates the consumers right of choice, such as the compulsory tying of credit cards when handling savings cards, the compulsory handling of credit card installment repayment business, etc This category. The outsourcing management is not in place. Some banks did not conduct due diligence on the professional background, purpose and nature of the agent; did not conduct identity verification, identification and retention of information for the agent; some banks did not restrict the outsourcing company to protect consumer privacy, nor supervised the outsourcing collection behavior. In view of the subjective or objective frictions made by all the above banks, the central banks Consumer Protection Bureau made correction: for the standard contract terms with more concentrated consumer complaints, the bank must clean up or abolish the text, and modify the unreasonable terms; the issuer must disclose important information of financial products in a way that consumers can understand; the bank must strengthen the protection of personal information of financial consumers, and further Step by step, standardize the marketing language and strengthen the management of outsourcing agencies. Source: China Securities Net Author: Liu Xiaoyou editor in charge: Zhong Qiming ud800udc4e nf5619

The card issuing management is not standardized. There are two major violations: one is that the card issuing process is not standardized, for example, the bank does not attach the applicants credit certification materials, but the notes of different application forms are obviously similar, which means that the card issuing bank fails to effectively perform the personal visit and signature; the other is that it violates the consumers right of choice, such as the compulsory tying of credit cards when handling savings cards, the compulsory handling of credit card installment repayment business, etc This category.

The outsourcing management is not in place. Some banks did not conduct due diligence on the professional background, purpose and nature of the agent; did not conduct identity verification, identification and retention of information for the agent; some banks did not restrict the outsourcing company to protect consumer privacy, nor supervised the outsourcing collection behavior.

In view of the subjective or objective frictions made by all the above banks, the central banks Consumer Protection Bureau made correction: for the standard contract terms with more concentrated consumer complaints, the bank must clean up or abolish the text, and modify the unreasonable terms; the issuer must disclose important information of financial products in a way that consumers can understand; the bank must strengthen the protection of personal information of financial consumers, and further Step by step, standardize the marketing language and strengthen the management of outsourcing agencies.