(Original title: Planted! An Yihua was notified of the “Seven Deadly Sins” by the China Banking and Insurance Regulatory Commission! Douyin ads have many ridiculous people “destroying the three views”? Netizen: Pushing the poor into the fire pit, but doing good deeds)
Every day I put ridiculous advertisements on Douyin, and the money for online loans is just as free. Just now, the company behind Anyihua, Consumer Finance, was notified by the China Banking and Insurance Regulatory Commission.
Suspected of seven deadly crimes!
Immediately, consumer finance violated consumer rights and was notified by the China Banking and Insurance Regulatory Commission
On June 15, the China Banking and Insurance Regulatory Commission’s website issued the “Notice of the Consumer Rights Protection Bureau of the China Banking and Insurance Regulatory Commission on the Infringement of Consumers’ Legitimate Rights and Interests by Immediate Consumer Finance Co., Ltd.,” stating that Immediately Consumer Finance Co., Ltd. has exaggerated and misleading marketing promotions and the obligation to inform. Insufficient performance; unstandardized product pricing management, unreasonable pricing of individual services; unstandardized management of student loans, and deviations in implementation; unsound management system of partners and lax control; unstandardized management of joint loans and regulatory arbitrage behavior; collection management There are seven major problems, including non-compliance collections, imperfect consumer rights protection systems, and incomplete implementation of certain functions, which infringe on consumers’ rights to know, self-choice, and fair transaction rights.
Specifically, there are seven violations of consumer finance immediately:
1. Marketing promotion is exaggerated and misleading, and the obligation of notification is not fully fulfilled
The “Anyihua” APP promotion is exaggerated and misleading. The homepage has a “ultra-low interest rate” publicity statement, and the actual loan interest rate is 7.2%-36%; the “Quick Loan Rights” pop-up window shows “Free Receive”, click on it Introduce consumers into the joint loan review process. The automatic installment content of the “Little Horse Huahua” card is reflected in the service agreement. Consumers need to click on the terms of the agreement to see it, and there is no separate eye-catching reminder. In the joint loan application process, the borrower was not clearly informed of the cooperative institution or the joint loan cooperative bank that provided credit guarantee insurance or guarantee, and various information related to personal loan guarantee insurance was not fully notified. Take a loan test of Anyihua APP as an example. The loan is jointly funded by Immediately Consumer Finance and the bank, and underwritten by the insurance company. The entire loan application process does not inform the insured individual of the cost of guarantee insurance in advance, and there is no reminder of key insurance clauses. Description.
2. Irregular product pricing management and unreasonable pricing of individual services
Immediately Consumer Money will manage the portion of the total capital cost exceeding 36% of the borrower’s actual loan interest, penalty interest, prepayment handling fee, etc., as an “overpayment” management, and it is stipulated in the contract that the borrower can claim the overpayment , But did not notify the borrower in a significant way on the client side. Some borrowers’ loans have been paid off, but the overpayments are not returned to the borrower’s account. At the end of August 2020, the overpayment balance of the borrower whose contractually agreed repayment period has expired was 865,200 yuan. The company’s standard membership service card has low-cost card types with high pricing, and the pricing is unreasonable.
3. The management of student loans is not standardized and there are deviations in implementation
Immediately, different products have inconsistent requirements for “non-student commitments”. Commodity installment requires applicants aged 20-24 to make a “non-student pledge”, and cash installment and revolving quota require applicants aged 18-22 to make a promise. The mother of a borrower requested to cancel the account through the customer service phone, asking if she would stop lending to her if she knew that the borrower was a student. The company’s customer service replied that even if it is a student, if it is their true wish and they are over 18 years old and under 60 years old, they can be released after the system review, and the final review of the APP system shall prevail.
4. The partner management system is not sound, and the control is not strict
Immediately Consumers has incomplete management systems for third-party partners, has not established a training management mechanism for partners, has not stipulated the frequency and coverage of partner inspections, and lacks institutional norms for the risk limit management of partners and stores. The cooperation contract with the medical aesthetics merchant lacks the agreement on training matters, and the loan limit setting is unscientific and unreasonable.
5. Unstandardized management of joint loans and regulatory arbitrage
In the joint loan cooperation agreement between Immediately Consumer Finance and a bank, the risk was not shared in accordance with the loan ratio. There are cases where loan interest is paid to cooperative banks as service fees. For example, it is agreed with a bank in a cooperation agreement that part of the interest will be converted into financial service fees paid to the bank at an annualized rate of 1.5%. In the joint loan business with cooperative banks, the borrower’s premiums are immediately consumed and transferred to the cooperative insurance company on a regular basis. This is the act of collecting and paying insurance premiums, but it does not have the qualifications of insurance intermediary. Later, he joined an insurance brokerage company in the business link, but it did not change the nature of the collection and payment of insurance premiums, and there was regulatory arbitrage.
6. Inadequate collection management and non-compliant collection
Immediately Consumers has not strictly reviewed the outsourced collection agencies, and has not established the outsourced collection agencies’ rating, assessment system and implementation rules. The company’s collection of text messages, collection calls, and lawyer’s letters contain content to collect collections from unrelated third parties. Telephone collections may disclose borrower information to unrelated third parties, insults, and attacks.
7. The consumer rights protection system is incomplete, and some functions have not been implemented
Immediately, the information disclosure of gold products and services is not standardized. The interest rates displayed on the “Anyihua” APP and some third-party cooperation platform loan application pages have not been converted into annualized forms. The disclosure of the early repayment fee standard in the announcement of product information, pricing and service content on the company’s official website is not clear. The collection of customer information in the “Privacy Policy” does not comply with the “necessary” principle. For example, the collection of “SMS records” from customers does not limit the time and scope of the collected call records, equipment, geographic location and other information. The consumer rights protection review mechanism does not cover the entire process, and does not implement effective review of design and development, pricing management and other links. For example, standard membership service card adjustments and pricing calculations have not been reviewed by the consumer protection department.
How ridiculous are An Yihua’s ads?
The fund manager just saw their advertisement on Douyin. It is ironic to compare the report of the Banking and Insurance Regulatory Commission!
The official website shows that Anyihua is a product of MaZhong Finance.
According to the official website, Immediate Consumer Finance Co., Ltd. (referred to as “Consumer Now”) is a technology-driven financial institution approved by the China Banking and Insurance Regulatory Commission to hold a consumer finance license. The registered capital is up to 4 billion yuan. Shareholders include Chongqing Department Store Co., Ltd. (600729.SH), Beijing Zhongguancun Kejin Technology Co., Ltd., Wumart Technology Group Co., Ltd., Chongqing Bank Co., Ltd. (01963.HK, 601963.SH), Sunshine Property Insurance Co., Ltd., Zhejiang China Commodity City Group Co., Ltd. (600415.SH), and a new round of strategic investors such as China International Capital Corporation, China Securities Investment and Chongqing Liangjiang New District and other central enterprises and local state-owned capital background capital.
According to the official website, the company actively promotes consumption upgrades, stimulates domestic demand and serves the development of the real economy, and continues to make positive contributions to local taxation, employment and other economic and social development. As of the end of 2020, the company’s registered users have exceeded 120 million, with a cumulative loan of more than 540 billion yuan, a cumulative tax payment of nearly 3.3 billion yuan, and more than 2,000 jobs.
The current online loan advertisements have converged a bit compared to the previous ones. Let’s take a look at how their advertisements did last year.
Advertisement 1: A young lady squatted in front of the luxury car, and two passersby said: The young people nowadays really have no money to drive a luxury car. The young lady shook her head and sent a message to her father that she would sell the car for emergency. At this time, a man came over and operated on the lady’s mobile phone, and the lady’s mobile phone immediately had a lot of money. The woman was puzzled. The man said it was a “easy flower”. The longer the phone number is used, the higher the quota. The maximum 12 installments will be “slowly paid back” and “no pressure at all”.
Advertisement 2: “Your Anyihua is a lie!” At the Anyihua press conference, a user rushed to the podium to throw a dish on the speaker’s face and roared. Just as the user was about to be launched on the scene, the speaker asked the user why he said Anyihua was a lie. It turned out that the user was dissatisfied with Anyihua’s failure to make a “1 minute loan” and made himself wait for three days. After listening, the speaker slapped the company’s employees and said “righteously” that Anyihua needs to be different from all loan platforms on the market in order to solve the dilemma of users’ urgent need for money. After that, the speaker began to promote An Yi Hua “up to 200,000 loans” and “the fastest 1 minute loan”, which won applause from the audience.
Advertising three:
Some netizens once commented that these advertisements have one thing in common: they are obviously pushing the poor into a fire pit, but they make it seem like they are doing good deeds.
The China Banking and Insurance Regulatory Commission criticizes “earth-flavored” and “wonderful” advertisements by name
Be wary of online platforms inducing excessive borrowing
“One-click loan”, “mobile phone number is worth 200,000”, “loan becomes rich and handsome in a second”… Recently, “earth-flavored” marketing advertisements frequently appeared on some online platforms, and online lending and other industries have become the hardest hit areas. These marketing advertisements use “earth flavor” and “wonderful” advertising words to attract traffic, extract customer information, and over-market financial products such as loans or credit card-like overdrafts, which brings serious financial risks.
In this regard, early this year, the Consumer Rights Protection Bureau of the China Banking and Insurance Regulatory Commission recently issued a risk reminder to remind consumers to establish a rational consumption concept, rationally use loan products, choose formal institutions and formal channels to obtain financial services, and beware of excessive borrowing marketing. Hidden risks or pitfalls.
China Postal Savings Bank analyst Lou Feipeng said that in recent years, some online platforms have used excessive marketing to induce users to over-consume and excessively grant credit to groups that do not have the ability to repay. When the borrower was unable to repay the loan, the use of violent collection methods caused many social conflicts. If it is allowed to develop, there is still the possibility of systemic risks, and it is necessary to speed up remediation.
“Some non-bank institutions or online platforms use their dominant position to make users feel that interest is cheap and borrowing costs are low, and they induce or even mislead users to borrow more. But when users make repayments, they will find that the cost is actually higher than bank loans. A lot.” said Dong Ximiao, chief researcher of China Merchants Union Finance.
Experts said that in order to further control the online platform to induce excessive consumption, on the one hand, it is necessary to regulate financial marketing and publicity, and carry out marketing and publicity within the scope of financial business permitted by the regulatory authorities; on the other hand, it is necessary to issue detailed rules governing the content of Internet financial advertisements. Standards for the production and publication of Internet financial advertisements. For example, consumer credit advertisements should clearly and accurately display the annual loan interest rate, and should not be promoted in the form of “daily interest rates” and “daily repayments”.
There is no free lunch in the world. Experts suggest that consumers should fully understand online platform loans, credit card-like overdrafts and installments and other lending products, be aware of important information such as loan interest rates, deadlines, and repayment methods, and be wary of the so-called “interest-free” and “zero interest” by some institutions or platforms. One-sided publicity. At the same time, give full play to the role of lending products, establish a sense of responsible lending, and do not over-rely on borrowing for consumption, let alone “financing loans with loans” or “long-term borrowing”.
At the same time, the China Banking and Insurance Regulatory Commission also reminded that financial consumers must choose formal institutions and formal channels for borrowing. Pay attention to checking whether relevant institutions have business qualifications to prevent infringements from illegal financial activities. Be vigilant against unidentified phone calls, links, and e-mail sales, do not click on unidentified links randomly, and do not provide important personal information on suspicious websites, enhance the awareness of personal information protection, and reduce the risk of fraud and personal information leakage.
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