A number of banks have adjusted the relevant regulations on credit card installment, and the name of "handling fee" has been changed to "interest".
Thank CTOnews.com netizens Rimi Ishihara for the delivery of the clue to happiness! CTOnews.com, November 24 news, recently, including Agricultural Bank of China, Construction Bank, Postal savings Bank, Zhejiang Merchants Bank and other banks issued a notice to adjust their credit card installment business, including offline automatic installment business, renaming "installment fee" to "installment interest" and so on. Industry insiders said that the bank's move is to implement the requirements of the new credit card rules.
According to Jiangsu News, Cheng Yao, associate professor of Nanjing Audit University and deputy dean of Jiangsu Provincial Government Statistics and big data Research Institute, said that the handling fee for installment business is often understood as a kind of reward paid to the bank when looking for the bank to do the installment business. The interest is actually a kind of financing cost, such as borrowing from the bank, which is the cost of using the capital, but in fact, when the bank collects the handling fee, it is charged according to a way of calculating the interest. It can be collected either at one time or in installments. In fact, many fees, if converted into interest rates, are probably double-digit interest rates, which are very high.
CTOnews.com learned that in July 2022, the notice on further promoting the healthy Development of Credit Card Business jointly issued by the Banking and Insurance Regulatory Commission and the people's Bank of China mentioned that banking financial institutions should show all possible interest items, annualized interest rates and calculation methods of interest fees and charges in an obvious way on the home page of phased business contracts (agreements) and business processing pages. When showing the cost of the use of funds collected by the installment business to the client, the interest form shall be adopted uniformly, and the corresponding interest calculation rules shall be clearly defined, and shall not be in the form of handling fees, unless otherwise stipulated by laws and regulations.
