Source:People’s Daily

Some microfinance companies target college campuses and use false propaganda to induce college students to over-borrow and consume on Internet shopping platforms, causing some college students to fall into high Loan trap. The General Office of the China Banking and Insurance Regulatory Commission and others have jointly issued the”Notice on Further Regulating the Supervision and Administration of College Students’ Internet Consumer Loans.

The notice clearly stated that microfinance companies are not allowed to issue Internet consumer loans to college students, and institutions established without the approval of the regulatory authorities are not allowed to provide credit services to college students. Regulate the marketing behaviors of lending institutions and their outsourcing partners, requiring lending institutions to substantively review and identify college students’ identities and real loan uses, and must not target college student groups with precision marketing, and must not use false, misleading, or inductive publicity and other improper methods to induce college students to get ahead Consumption, excessive borrowing. Strengthen the risk management of internet consumer loans for college students in banking and financial institutions, strictly implement the second source of repayment for college students, standardize collection behavior, and strengthen the protection of personal information.

For the Internet consumer loans that have been issued for college students, the notice requires microfinance companies to formulate a rectification plan. In principle, the loans that have been issued will not be extended, and the existing business will be gradually digested, and new business in violation of regulations is strictly prohibited.