The Banking Regulatory Commission has eliminated the chaos of auto finance, and may not operate auto loan guarantee business without approval.


Editor’s note: This article is from Krypton 36 “Future Automotive Daily” (micro-channel public number ID: auto-time), Author: Li Huanhuan.Author | Li Huanhuan editor | Wu Yan does not refund the guarantee money, collect unreasonable collection fees and unlicensed car consumer loan guarantee business and other auto finance chaos, will finally be rectified.On October 23, the Banking Regulatory Commission, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Finance, the Ministry of Housing and Urban-Rural Development, the Central Bank, the Ministry of Agriculture and Rural Affairs, the Ministry of Commerce, and the General Administration of Market Supervision jointly issued the Notice on the Supplementary Provisions on the Supervision and Administration of Printing and Issuing Financial Guarantee Companies.Bao Jian Fa [2019] No. 37, hereinafter referred to as the “Supplementary Provisions”.The Supplementary Provisions clearly state that without the approval of the supervisory authority, auto dealers, automobile sales service providers and other institutions may not operate automobile consumer loan guarantee business, and the existing stock business should be properly settled; if there is a need to carry out related business,The financing guarantee company shall be established in accordance with the Regulations on the Supervision and Administration of Financing Guarantee Companies.For financing guarantee companies that violate the law and operate illegally and seriously infringe upon the legitimate rights and interests of consumers (guarantees), the supervisory and administrative departments shall intensify their efforts to crack down on relevant situations and timely protect the legitimate rights and interests of consumers.In recent years, as the sales volume of the automobile market has been rising year by year, the automobile finance business has developed rapidly, and many small companies without business licenses have poured in, providing consumers with automobile consumption loan guarantee services through installment payment and financial leasing.These irregular business practices breed a variety of industry chaos, such as forcing consumers to purchase designated car insurance, unreasonable car deduction, setting up a “zero down payment car” scam, charging a high amount of unreasonable collection fees, and not refunding consumer car purchase guarantees.Since most of these companies are unlicensed and are not regulated by relevant agencies, consumers often have no complaints and are unable to defend their rights.The “Regulations” issued by the Banking Regulatory Commission is to eliminate the chaos of auto financing services and safeguard consumer rights.Cui Dongshu, secretary-general of the National Passenger Car Market Information Association, said in an interview with the Future Auto Daily (ID: auto-time) that “the Silver Insurance Regulatory Commission’s move is an important means to prevent and resolve the risks of auto finance. Auto consumer credit is currently very large.Unsafe, dealers provide loan guarantees for those with poor qualifications, there is a great risk. Because many low-end consumers are not familiar with loan interest, do not understand auto finance, and may not have the ability to repay under blind loans.The loan guarantee is also to prevent the loan from being expanded and over-credited, and to prevent personal bankruptcy.” ——————— I am 36, the future car daily author Li Huanhuan, concerned about electricNew developments in cars and autonomous driving, welcome to breaking news and communication.My WeChat is xuqianmo, add a note name, position, company.