Want to borrow money?With a single tap of the mobile phone, it will arrive in the account quickly. But soon someone will knock on your door and urge you to pay it back.
In fact, just to collect the arrears, it costs up to 2 billion a year!
This year, consumer finance was immediately fined a million dollars for imprudent pre-loan review;The management of collection cooperatives is not prudent.
While financial companies are growing rapidly, they also need to face increasingly stringent compliance and regulatory requirements.
Due to negligence in review and management, millions of fines were collected
This year, the consumer finance company received a heavy fine from the Chongqing Banking and Insurance Regulatory Bureau for a series of review and management negligence, with an amount of up to 1 million. The reasons for this fine are mainly due to the following two points:
First, because its pre-loan review is not prudent;Second, the management of outsourcing collection cooperation institutions is not prudent.
The company's relevant persons in charge, Zhu Jin and Xu Yi, were also warned because of this.
But this is not the first time that consumer finance has been fined by regulators. Back in March 2017, the company was fined 390,000 yuan for violating the regulations of the credit reporting industry.
In June 2021, the Consumer Rights Protection Bureau of the China Banking and Insurance Regulatory Commission also pointed out that there are a number of problems in consumer finance, and the main problems involved include:
Marketing claims are exaggerated and misleading.
Product pricing management is not standardized.
The management of student loans is not standardized.
Partners are not strictly controlled.
The management of syndicated loans is not in place.
Non-compliant collections.
The system and mechanism for the protection of consumer rights and interests are not perfect.
Total".The Seven Deadly Sins
One concrete example is that the Immediate Consumer Finance advertised "ultra-low interest rates" on its "Anyihua" app, but the APR was as high as 72% to 36%. In addition, there are also problems with the company's collection practices, such as the involvement of unrelated third parties in the collection text messages and collections, as well as the disclosure of borrower information in the collection, and even insults and attacks.
After being named and criticized and pointed out so many problems, Consumer Finance immediately said: sincerely accept the criticism and opinions of the regulatory authorities, set up a rectification team as soon as possible, and basically completed the rectification work.
However, the million-dollar fine issued by the Chongqing Banking and Insurance Regulatory Bureau shows that the company's rectification work still has shortcomings. Complaints are constant, and violent collections are made
Since its establishment in June 2015, the company has Chongqing Department Store as its controlling shareholder, focusing on providing consumer financial services based on revolving lines. Its core product is an online revolving loan app called "Anyihua", which provides users with a credit limit of up to 200,000 yuan.
Thanks to the rapid development of Internet finance, consumer finance has achieved rapid growth in the first few years since its establishment. According to its shareholder, Chongqing Department Store, as of the end of 2022, the total assets of immediate consumer finance reached 6651 billion yuan, an increase of 8 over the end of the previous year87%。In 2022, the company achieved 135The operating income of 300 million yuan increased by 35% year-on-year16%, and the net profit reached 17900 million yuan, a year-on-year increase of 2934%。
These data show that consumer finance has become an important profit for Chongqing Department Store**, which also verifies the saying: ".It is better to do business than to lend
Although consumer finance has achieved rapid development in a short period of time, the management confusion and controversy behind it have become increasingly prominent. Especially in recent years, the company has been named and punished by the regulatory authorities many times due to various problems. As of December 7, on the Black Cat complaint platform, the total number of complaints about immediate consumer finance has reached 27,503. These complaints mainly focus on loan sharking, violent collection, and inexplicable loans.
Thanks to the huge consumer group, the domestic consumer finance market has developed rapidly in recent years. However, with that comes all sorts of chaos within the industry. For example, some consumers said on the Black Cat complaint platform that the "Anyihua" product of immediate consumer finance has problems such as inducing loans, charging high interest and insurance premiums, and frequently checking credit records without permission.
On November 25, a consumer complained that I borrowed 3 times in the "Anyihua APP" under Ma Finance, and the interest rate was super high, and the interest fee of about 300 yuan was actually about 300 yuan for 2 days, which was simply a violation of national statutory regulations, and the licensed institution was so blatant. I ask for an immediate refund of the unreasonable interest fee. It's no different from loan sharking.
On November 25, a consumer complained on the black cat: violent collection, impersonating the public procuratorate, threatening and intimidating me and my family, and I had a car accident during the collection process, and the customer service refused to deal with it.
Since the liberalization of China's consumer finance market in 2009, 31 consumer finance companies have been established and opened in the past decade. When these companies were first founded, they all held high the banner of financial inclusion and promised to provide consumers with more convenient and reasonable financial services.
However, the reality is far from the original intention. Many consumers have been plagued by high-interest loans in the services of these consumer finance companies. In addition to having to deal with high interest burdens, they are often subjected to violent collection practices by relevant authorities.
When reviewing the financial report of Instant Consumer Finance, it is found that during 2022, the expenses of Immediate Consumer Finance were mainly concentrated in collection fees, marketing fees, employee expenses, credit investigation service fees, R&D and information technology expenses, etc. In addition to the collection of on-balance sheet loans, the company is also responsible for the collection of open platform business, and the collection fees have increased a lot in recent years, with 115.6 billion yuan, 150.1 billion and 208.8 billion yuan.
This large collection fee may explain why so many people complain about violent collection of immediate consumer finance.
However, immediately after the regulator's notification pointed out the problem, the immediate rectification of consumer finance did not seem to have achieved the desired effect. Current consumer complaint data shows that there are still hundreds of complaints every month, indicating that the problems faced by companies are still serious.