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Banks change the name of fee to interest

via:IT之家     time:2022/11/24 16:00:31     readed:44

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IT Home, November 24 news, recently, including Agricultural Bank of China, China Construction Bank, Postal Savings Bank, Zheshang Bank and other banks announced that the adjustment of their credit card installment business,These include the offline automatic installment service and the renaming of installment fee to installment interest.Industry insiders said the bank's move is to implement the requirements of the new credit card regulations.

According to Jiangsu News, Cheng Yao, an associate professor at Nanjing Audit University and deputy director of the Jiangsu Provincial Government Statistics and Big Data Research Institute, said that the fee for installment business is often understood as a kind of remuneration paid to banks when they apply for installment business. And interest is actually a cost of financing, like borrowing from a bank, it's the cost of using that money,But in fact, when banks charge fees, they are charged according to one way of calculating interest.It can be collected in one lump sum or in installments. In fact, a lot of these fees if you convert them into interest rates,It's probably double digit interest rates, which is pretty high.

IT Home learned that in July 2022, the Notice on Further Promoting the standardized and Healthy Development of Credit Card Business jointly issued by China Banking and Insurance Regulatory Commission and the People's Bank of China mentioned that banking financial institutions should post on the first page of installment business contract (agreement) and business handling page. Show in an obvious way all interest items that may arise from staging business, the level of annualized interest rates and the way interest rates are calculated. When displaying the cost of using the funds collected by installments to the customer, it shall be in the form of interest, and the corresponding rules of interest calculation shall be clearly defined, and shall not be in the form of commission charges, unless otherwise provided for by laws and regulations.

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