Five departments： Small loan companies are forbidden to issue Internet consumer loans to college students.
Recently, some Internet financial platforms aim at university campuses, and through induced marketing, they issue Internet consumer loans to induce college students to spend too much, leading to the phenomenon that some students fall into the trap of high loans, which has attracted great attention from the regulatory authorities. On March 17th, Beijing Youth Daily learned that the General Office of China Banking and Insurance Regulatory Commission, the Secretariat of the Central Network Information Office, the General Office of the Ministry of Education, the General Office of the Ministry of Public Security and the General Office of the People’s Bank of China recently jointly issued the Notice on Further Regulating the Supervision and Management of College Students’ Internet Consumer Loans (hereinafter referred to as the Notice), which further standardized the supervision and management of college students’ Internet consumer loans from four aspects, earnestly safeguarded the legitimate rights and interests of college students, and deployed the supervision, inspection, investigation and rectification of college students’ Internet consumer loans.
It is reported that in the next step, China Banking and Insurance Regulatory Commission will work with relevant departments to implement the Notice, actively carry out investigation and rectification of illegal businesses, resolutely curb the phenomenon of accurately "harvesting" college students on the Internet platform, and earnestly safeguard the legitimate rights and interests of students.
1. How to develop college students’ credit business?
No accurate marketing for college students.
The "Notice" strengthens the supervision and management of Internet consumer loans for college students in lending institutions. It is clear that microfinance companies are not allowed to issue Internet consumer loans to college students. The "Notice" requires that microfinance companies should strengthen the substantive verification of the identity of loan customers, and must not set college students as the target customer groups of Internet consumer loans, and must not accurately market for college students, and must not issue Internet consumer loans to college students.
The Notice further strengthens the risk management of college students’ Internet consumer loan business in licensed financial institutions such as consumer finance companies and commercial banks, and clarifies that institutions established without the approval of the regulatory authorities are not allowed to provide credit services to college students. At the same time, organize all localities to deploy and carry out supervision, inspection, investigation and rectification of college students’ Internet consumer loan business.
The Notice requires that the outsourcing cooperative institutions of lending institutions should strengthen the screening of customers, and should not use improper methods such as false, misleading or induced propaganda to induce college students to consume ahead of time and borrow excessively, nor should they accurately market for college students, nor should they push and drain college students to lending institutions.
Banking financial institutions should strictly abide by the risk bottom line, prudently carry out college students’ Internet consumer loan business, establish and improve appropriate risk management systems and early warning mechanisms, strengthen pre-loan investigation and evaluation, and attach importance to post-loan management and supervision to ensure that risks are controllable.
2. What about the stock of college students’ loans?
In principle, loans already issued will not be extended.
In terms of personal information protection, the Notice requires strengthening the personal information security protection of college students, establishing and strictly implementing the rules and regulations to ensure information security, taking effective technical measures to properly manage the basic information of college students, and not sending the information of loan students to third-party institutions, or illegally revealing, exposing or buying or selling the information of loan students.
It is necessary to strengthen the submission of credit information, and submit all credit information of college students’ Internet consumption loans to the basic database of financial credit information in a timely, complete and accurate manner in accordance with the Regulations on the Administration of Credit Information Industry. Students who do not agree to submit credit information may not be granted loans.
For college students’ Internet consumption loans that have been issued, first, we should urge microfinance companies to make rectification plans. In principle, loans that have been issued will not be extended, and the existing business will be gradually digested. It is strictly forbidden to add new business in violation of regulations. Second, it is necessary to urge banking financial institutions to strengthen investigations, rectify illegal businesses within a time limit, and strictly implement risk management requirements. Institutions that refuse to rectify the problems found in the investigation or whose circumstances are serious should be severely punished and cracked down, and those suspected of committing crimes should be transferred to judicial organs.
The Notice requires all colleges and universities to take the main responsibility of student management. First, vigorously carry out financial knowledge popularization education, strengthen financial knowledge publicity and education, and effectively improve students’ awareness of financial security. The second is to constantly improve the working mechanism of helping and rescuing. Effectively protect the affordable needs of students with financial difficulties, such as tuition, accommodation and basic living expenses, and solve the temporary and urgent financial needs of students. Third, comprehensively guide college students to establish a scientific, rational and healthy consumption concept, establish a daily monitoring mechanism, pay close attention to students’ abnormal consumption behavior, take targeted measures to correct it, and strive to achieve early prevention, early education, early detection and early disposal.
At the same time, colleges and universities should actively cooperate with relevant departments to do relevant work: First, block the side door and resolutely resist bad campus network loans. Colleges and universities should establish a joint prevention and control mechanism, actively cooperate with public security departments and financial supervision departments to accurately crack down on bad campus network loans and safeguard students’ rights and interests. Establish a real-time early warning mechanism, timely release early warning information of bad campus network loans to students by telephone, internet, campus broadcast and other forms, and build a protective net. The second is to open the main entrance to meet the reasonable credit needs of college students. Colleges and universities should cooperate with banking financial institutions to develop financial products such as college aid, training and entrepreneurship with convenient procedures, reasonable interest rates and controllable risks. Pay attention to college students’ financial services, actively connect with banking financial institutions, open regular campus credit service channels for college students with reasonable needs, drive out "bad money" with "good money", and strive to purify the campus financial market environment.
3. How to deal with related crimes?
Intensify the crackdown on illegal lending institutions
The Notice requires that local financial supervision and management departments and banking insurance regulatory bureaus should, on the basis of the previous campus loan rectification work of online lending institutions, include various lending institutions such as microfinance companies and consumer finance companies in the rectification scope, and comprehensively use various means such as website monitoring, fund monitoring, on-site inspection and data analysis to further strengthen the supervision, inspection and investigation of college students’ Internet consumer loan business. At the same time, increase the investigation and crackdown on illegal lending institutions.
The "Notice" requires that the public opinion should be relieved and guided. Guide all localities to do a good job in the online interpretation and public opinion guidance of regulating the supervision and management policies of college students’ Internet consumption loans, and take the initiative to speak out and clarify the truth about the malicious speculation and rumors of using college students’ Internet consumption loans to jointly create a good public opinion environment.
At the same time, increase the investigation and punishment of illegal and criminal problems. Guide local public security organs to intensify the investigation and punishment of illegal and criminal activities in the Internet consumer loan business of college students, severely crack down on criminal activities carried out by means of routine loans and usury against college students, intensify the crackdown on illegal detention, kidnapping, violent collection and other illegal and criminal activities, and crack down on illegal and criminal activities that infringe on citizens’ personal information according to law.
4. How to satisfy college students’ consumption loans?
Follow the principle of small and short-term risk control
The Notice requires that, in order to meet the reasonable consumer credit needs of college students, all banking financial institutions can develop targeted and differentiated Internet consumer credit products under the premise of controllable risks, follow the principle of small amount, short term and controllable risks, strictly limit the loan balance of the same borrower and the total business scale of college students’ Internet consumer loans, strengthen product marketing management, strictly examine the qualifications of college students, and improve asset quality.
In terms of marketing management, the Circular requires banking financial institutions and their cooperative institutions not to conduct online accurate marketing for college students. Offline marketing and publicity activities carried out on campus should be reported to the regulatory authorities of the marketing area in advance, and the specific place, date, time and content of marketing activities should be informed in advance to the relevant educational institutions and the consent of the educational institutions should be obtained. Marketing activities should not use deceptive, misleading or induced publicity to induce college students to apply for consumer loans.
The Notice requires strict pre-loan qualification examination, substantive examination and identification of college students’ identity and real loan purposes, comprehensive evaluation of college students’ credit information, income, taxation and other information, comprehensive understanding of college students’ credit status, strict implementation of college students’ second repayment sources, confirmation of the authenticity of the identity of the second repayment sources by telephone and other reasonable means, obtaining written guarantee materials that the second repayment sources with repayment ability (parents, guardians or other managers, etc.) agree to their loan behavior and are willing to repay on their behalf, and strictly controlling college students’ credit qualifications.
It is necessary to strengthen post-loan management to ensure that the flow of loan funds conforms to the provisions of the loan contract; Properly handle overdue loans, standardize collection management, and prohibit any violent collection behavior that interferes with the normal study and life of college students; Timely grasp the changes of college students’ capital flow and credit status, improve the response plan, and ensure that the overall business risk of college students’ Internet consumer loans is controllable.
This group/our reporter Cheng Jie co-ordinates/Yu Meiying
Photo courtesy/vision china