The introduction of new credit card regulations concerns you and me.
Xinhua News Agency, Beijing, July 7th Question: The introduction of new credit card regulations concerns you and me.
Xinhua News Agency reporter Li Yanxia
On the 7th, the People’s Bank of China Banking and Insurance Regulatory Commission and China issued the Notice on Further Promoting the Standardized and Healthy Development of Credit Card Business to rectify the chaos in the credit card market and effectively protect the legitimate rights and interests of financial consumers. This new regulation will have an important impact on your card opening and use.
Standardize the collection of credit card interest fees
There are many kinds of charges for credit card business, including annual fee, handling fee, interest and liquidated damages. In practice, some banks unilaterally publicize low interest rates and low rates, charge interest in disguised form in the name of handling fees, and blur the actual use cost.
In this regard, the circular requires banking financial institutions to effectively improve the standardization and transparency of credit card interest and fee management, strictly fulfill the obligation to explain interest and fee in the contract, and show the highest annualized interest rate level in an obvious way.
Installment business is an area where there are many routines in credit card business. Cardholders often receive suggestions from banks for repayment in installments when spending by credit card. The words "interest-free" and "zero interest rate" are exciting. But in fact, banks usually charge a certain fee for installment repayment business.
The notice requires that banking financial institutions must clearly display all interest items, annualized interest rate levels and interest rate calculation methods that may be generated by installment business on the first page of the installment business contract (agreement). When showing the use cost of funds collected by installment business, interest shall be uniformly used, and handling fees shall not be used.
At the same time, the notice requires that banking financial institutions should specify the minimum starting amount and the maximum amount of installment business; Not for the balance of funds that have been phased again; The term of installment business shall not exceed 5 years.
In addition to strictly regulating the collection of interest fees, the notice also explicitly requires banks to continue to take effective measures to actively promote the reasonable decline of credit card interest rates under the premise of legal compliance and effective risk coverage.
The long-term sleep card ratio shall not exceed 20%.
In recent years, in the rapid development of credit card business, some banks have blindly pursued market share, issued cards indiscriminately and repeatedly, resulting in disorderly competition and waste of resources.
The circular puts forward strict regulations on the management of card issuance, requiring banking financial institutions not to directly or indirectly use the number of cards issued, the number of customers, market share or market ranking as single or main assessment indicators. Strengthen the dynamic monitoring and management of sleep credit cards. The number of long-term sleep credit cards that have not been actively traded by customers for more than 18 consecutive months and the current overdraft balance and overpayment are zero shall not exceed 20% of the total card issuance of the institution at any time. Banks that exceed this ratio may not issue new cards.
"In recent years, a number of banks have actively transformed into retail business, and credit cards have been widely used as an entry point and focus as asset business. However, in the process of business development, there has also been a management model that simply uses the number of cards issued and the number of customers as assessment indicators, resulting in short-term business. " Ceng Gang, director of Shanghai Finance and Development Laboratory, said.
The person in charge of the relevant departments in China Banking and Insurance Regulatory Commission said that in the future, the limit standard of long-term sleep credit card ratio will be lowered dynamically, and the industry will be constantly urged to lower the sleep card ratio to a lower level.
Set the upper limit of total credit line for a single customer.
Excessive credit granting is also a high-incidence problem in the credit card field. In the face of fierce market competition, increasing the credit line usually becomes a means for banks to compete for customers.
The circular requires banking financial institutions to reasonably set the upper limit of the total credit line of a single customer, and bring it into the unified management of all credit lines of this customer. When approving and adjusting the credit line, the credit line accumulated by customers from other institutions shall be deducted.
Dong Ximiao, chief researcher of Zhaolian Finance, said that some cardholders need to pay attention to the problem of "raising cards with cards" and cashing out illegally. Commercial banks should reduce multi-head credit granting, strictly control excessive credit granting and guard against credit card debt risks.
Point to develop online credit card business
While rectifying the chaos with heavy punches, the notice gives sufficient space for credit card business innovation. It is clearly stated that innovative models such as online credit card business will be explored through pilot projects in accordance with the principles of risk control, safety and order.
"Developing 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 technology." Gao Feng, chief information officer of China Banking Association, said that the key link of online credit card business is remote face-to-face signing. We should do a good job in screening target customers, supporting remote video technology and controlling online business processes.
It is understood that the regulatory authorities will give priority to the banking financial institutions with high recognition and trust of the people’s services, adequate protection of consumers’ rights and interests and requirements for letters and visits, prudent and strict compliance with business philosophy and risk control, and all rectification work reaching regulatory targets.