Since the fourth quarter of 2019, the regulatory system receives consumer complaints reported significant rise to new Banks, car credit the complaints to report the second number at the top of the banking financial institutions, reflecting the problems mainly concentrated in the Banks loan, car loan amount is disputed, loans high XiFei, violence, collection, etc.” On March 18, Xinwang Bank was named and reported by the China Banking and Insurance Regulatory Commission for its problems with car loans.
Sichuan New Net Bank, one of the country’s three Internet banks, officially opened on December 28, 2016, according to the official website of New Net Bank. With a registered capital of 3 billion yuan, Xinwang Bank was initiated and established by shareholders including New Hope Group, Xiaomi and Hongqi Chain. It is the seventh private bank approved by China Banking Regulatory Commission and the first private bank in Sichuan Province.
The Consumer Rights and Interests Protection Bureau of China Banking and Insurance Regulatory Commission (CBRC) issued Notification No. 5, 2021 on Cases of Infringement of Legal Rights and Interests of Consumers by New Net Bank (hereinafter referred to as the Notification), which notified the cases of infringement of legal rights and interests of consumers by Sichuan New Net Bank Co., Ltd. (hereinafter referred to as the New Net Bank).
“Briefing”, points out that since the fourth quarter of 2019, the regulatory system receives consumer complaints reported significant rise to new Banks, car credit the complaints to report the second number at the top of the banking financial institutions, reflecting the problems mainly concentrated in the Banks loan, car loan amount is disputed, loans high XiFei, violence, collection, etc. Among them, the complaints and reports on the cooperation business between Xinnet Bank and an Internet automobile consumption staging service platform are particularly prominent.
According to the Bulletin, the investigation found the following violations of consumers’ legal rights and interests in the cooperation business between Xinnet Bank and the Internet platform:
It is the new net bank before the loan investigation is not due diligence. Xinnet Bank has the problem of failing to check the authenticity of loan application materials of some borrowers, which violates relevant regulatory regulations.
Second, the new net bank collection management is not in place. There are some problems in the new net bank, such as the lack of corresponding management system for short message collection and incomplete operating rules for telephone collection.
Third, the cooperation business between the new network bank and the Internet platform has pushed up consumer financing costs. Among the consumer complaints and reports received by the supervision, the ratio of platform fees or service fees charged by the Internet platform to the amount of auto financing is concentrated between 14% and 28%, and some rates are more than 30%. Xinnet Bank’s annual interest rates for loans to consumers range from 7.7% to 8.9%, with an average of 8.49%. The comprehensive financing costs such as premium rate and interest rate borne by consumers are much higher than the normal interest rate level of automobile consumer loans.
Reporters noted that in the “black cat complaint” platform, the new net bank complaints have 1450, involving collection, and the Murray car financial platform and other content.
On the platform “Black Cat Complaints”, a consumer said, “Due to the two epidemics in Xinjiang last year, my income dropped precipitously, so I could not handle my bills normally, and all kinds of debts were too high to bear. Now the income is gradually stable, we can deal with the overdue amount every month, and request Xinnet to agree to divide the bill by stages, so as to ensure no longer overdue. And stop third party collections and stop harassing relatives again.”
The “Black Cat Complaint” platform has received 161 collective complaints about “Merikin Platform, Xinwang Bank cheating consumers”. With the customers on the “black cat” complaints, according to the “beautiful rakem platform combined new routines consumer bank, induce consumers to sign the unequal contracts, I at that time, demand for borrowing capital 35000 yuan, beautiful rakem platform with induction, coaxing the way I have signed a principal contract for 50980 yuan, now U.S. rakem platform and new bank to evade, delay in the way to avoid problems.”
“Briefing” require Banks to insurance institutions seriously the implementation of the CPC Central Committee and the State Council decision deployment, according to the silver circ on the bank insurance institutions to strengthen the guidance of the construction of the system of consumer rights and interests protection mechanism, and establishing and perfecting the system of consumer rights and interests protection mechanism, from top to bottom to shoulder the responsibility, the main body around with the third party agencies, collection management enroach on consumer rights and chaos conduct self-check, compliance to carry out business activities according to law, effectively reduce the comprehensive cost of the financing, protect the legitimate rights and interests of consumers.