Mala Finance: Be careful! Financial marketing has new “routines”

Information disclosure is one-sided and product risks are hidden; Internet advertising pages induce consumers to check options such as "receive protection" and "automatic renewal"; in the name of financial business, for the purpose of illegal possession, under the guise of private lending The famous routine loans and illegal fund-raising...

Recently, the Consumer Protection Bureau of the China Banking and Insurance Regulatory Commission issued a risk warning to remind consumers to be wary of various new types of "routine loans" and "routine insurance".

What are these new types of “routine loans” and “routine insurance”? How can consumers protect themselves against these risks? Malajie interviewed relevant departments and experts.

There are many new types of "routine loans" and "routine insurance"

In December 2021, the Consumer Rights Protection Bureau of the China Banking and Insurance Regulatory Commission reported Hua Xia Bank's infringement of consumer rights: Hua Xia Bank launched In the Internet loan business, the actual interest rates are not fully displayed and low interest rates are one-sidedly promoted, which infringes on consumers' right to know.

"Huaxia Longshang Loan" advertised on the WeChat public account that "the annualized interest rate is as low as 7.2". The actual annualized comprehensive capital cost borne by customers is as high as 18, which is 2.5 times the advertised interest rate, and the product is online No customer has ever enjoyed the lowest advertised interest rate.

Malajie did find some complaints against "Huaxia Longshang Loan" on relevant complaint websites. A customer said that in October 2019, he received a loan of 5,000 yuan from "Huaxia Longshang Loan" with a term of 6 months. But I didn't expect that in the final repayment, plus the penalty interest for sometimes not repaying in time, I would have to repay 5,664.92 yuan per day. The annual loan interest rate was higher than the originally advertised interest rate, which also included part of the guarantee fee.

"China Longshang Loan" is not an isolated phenomenon. Among the "routine" marketing behaviors reported this time, such one-sided information disclosure and hidden product risks are not uncommon.

For example, in loan sales, some loan products have opaque interest rates, deliberately vague borrowing costs, or do not indicate annualized comprehensive capital costs, principal and interest repayment arrangements, etc. Some borrowers encounter "cut-off interest", and the loan principal they receive is deducted from the loan interest first; some find that they have to pay guarantee fees, service fees, insurance premiums, etc. after receiving the loan.

Another example is that in insurance marketing, consumers are misled into purchasing insurance by using “0 yuan for the first month”, “1 yuan for the first month” and “free receipt”, or in the name of other financial products such as bank deposits and wealth management products. Promote and sell insurance products.

"This kind of behavior that uses 'limited time special offers', 'daily subsidies' and other promotions, and 'zero down payment' and other methods to give policyholders the illusion of preferential premiums and induce policyholders to purchase insurance, is false propaganda. , defrauding policyholders,” said the relevant person in charge of the Consumer Protection Bureau of the China Banking and Insurance Regulatory Commission.

Currently, it is very common to purchase financial products and use financial services through the Internet, and "routine" marketing behaviors based on the Internet are also increasing. The person in charge said that some institutions induce consumers to give priority to consumer credit in aspects such as product promotion, display and payment. Another example is that some Internet insurance marketing advertising interface settings are not standardized and unclear, and consumers are induced to check options such as "receive insurance" and "automatic renewal" on the page. In addition, there are platforms that use default check-boxes, mandatory check-boxes, etc. to conduct bundled sales, forcing consumers to purchase non-essential products or services.

"Older consumers who are unfamiliar with the use of smart devices, consumers who are insensitive to the risk pricing of financial products, or consumers who lack rational consumption concepts are more likely to be 'riddled'." The person in charge said Introduction.

In addition, illegal and criminal activities such as routine loans, illegal fund-raising, and fraud are also constantly changing their disguises, infringing on the property safety of consumers in the name of financial innovation and financial services.

According to reports, some routine loans are currently disguised as providing employment, training, medical beauty and other services in the name of "entrepreneurship", "job search", "beauty", etc., and students and job seekers may blindly pursue them. High-end consumers are more likely to be deceived.

There are also criminals who solicit business in the names of "surrendering financial management" and "insurance surrendering agency", inciting or tricking consumers into entrusting them to surrender normal insurance and purchase so-called "high-yield" financial products. There are also criminals who take advantage of the eagerness of some creditors and debtors to relieve their difficulties and recover funds and charge high service fees in the name of debt resolution and debt consulting services. In fact, this is illegal fund-raising or financial fraud.

Purchase financial products and borrow appropriately according to your own risk tolerance

In the face of new “routine” marketing methods that are constantly emerging, the person in charge reminded consumers to enhance their awareness of risk prevention , to prevent "routine" marketing behaviors from infringing on your own rights and interests.

First of all, we must be wary of false propaganda such as concealing risks and vague fees. Purchase financial products from formal institutions and standardized channels according to your own risk tolerance and needs. Don’t just buy financial products because they are “free”, “zero down payment” or “limited time”. " and other marketing propaganda routines and rashly purchase financial products that they do not understand and unnecessary.

According to reports, relevant departments are also requiring institutions to express the annual interest rate of loans for all loan products; insurance products should state insurance liabilities, exclusions, premium payment, insurance compensation or benefits, etc. that affect insurance purchase Important matters for decision-making.

Secondly, we must be wary of the risk of over-indebtedness, use personal consumer credit loans in a reasonable and compliant manner, adhere to the concepts of moderate debt and rational consumption, and develop good consumption and repayment habits. In particular, do not illegally use personal consumer credit loans such as installment loans and small loans for non-consumption areas such as financial management, investment, house purchase, and loan repayment. Avoid "using loans to support loans" or "using cards to support cards." Predatory loans such as campus loans and illegal routine loans for "starting a business", "job hunting", "beauty" and other purposes are harmful.

In addition, you must be wary of illegal "rights protection by agency", be cautious about important links such as signing and authorization, pay attention to reading the contract terms, ensure that you understand the content of the financial service agreement signed or authorized, and choose reasonable and legal channels. Rights protection.

Finally, beware of fraud and infringements in the name of "debt services", do not be fooled by rhetoric such as "debt relief and landing", and guard against secondary infringements of illegal fund-raising, fraud and other behaviors in the name of debt resolution. . Once clues about suspected illegal crimes are discovered, the case can be reported to the public security organs or the relevant financial regulatory authorities in a timely manner.

ID: jrtt