Everbright Bank Was Punished For Violation Of Many Credit Card Businesses

China Everbright Bank, which is preparing to issue H-shares, has exposed the problem of irregularities. supervise The department inspected the bank's credit card business. Violation The act was punished and asked the bank to be accountable to the persons concerned.

Credit card approval process exposure Loophole

Everbright Bank's 2010 annual report shows that the bank's credit card cumulative issuance of 8 million 580 thousand cards, then issued 2 million 180 thousand new cards, an increase of 34.06% over the previous year. But behind the rapid expansion, it exposes many weaknesses in the credit card business of Everbright Bank.

According to people familiar with the matter, the credit card center of China Everbright Bank has issued credit cards to customers under 18 and over 60 years of age, seriously violating the relevant regulatory requirements.

According to the approval and credit policy of China Everbright Bank Credit Card Center (2008 Revision Edition), one of the basic conditions for natural persons to apply for credit cards is "18 years of age (inclusive) to 60 years of age (inclusive) and full civil capacity". For overage customers, special channel approval is required. However, regulatory authorities found that Everbright Bank issued 14 cards to less than 18 years of age, of which 9 did not provide recommendation letters and other approval requirements according to the Credit Card Center regulations. Everbright Bank also issued 49 cards to customers over 60 years old.

In addition, the regulatory authorities also found that Everbright Bank had strict requirements for the integrity of credit card approval requirements. There are 15 kinds of channels for inspection and approval by Everbright Bank. Each channel stipulates the examination and approval requirements that must be provided. The inspection team has checked 18 out of age customers, and there are 16 degree of defects in the approval elements.

It is reported that the regulatory authorities, in accordance with the People's Republic of China banking supervision and management law twenty-first, forty-sixth, forty-eighth, on the Everbright Bank credit card business approval lax and other issues, fined, and ordered the Everbright Bank in accordance with the relevant provisions of the responsible personnel to give disciplinary sanctions. Reporters call the Everbright Bank Beijing branch, the telephone no answer.

Credit card litigation is on the rise

Because of the violation of credit card approval procedures, credit card disputes continue. The industry believes that most credit card disputes are faced with cardholders' malicious overdraft, and the root lies in the issuing link of credit cards for commercial banks.

Information from the Chaoyang District court of Beijing shows that credit card fraud is a more prominent crime, and this type of case is in a blowout growth, including China Everbright Bank's case.

The Chaoyang District Court advised the issuing bank that the card issuing bank should improve the credit auditing system and strengthen the supervision of issuing links. Carry out systematic training and standardized management of marketing personnel, strictly check card issuance, take various auditing methods and various skills to conduct credit audit. According to the applicant's credit rating such as fixed occupation and stable income, the credit line is reasonably determined. At the same time, applicants should make good legal risk tips and popularize relevant credit card knowledge, and will not issue applications to applicants who fail to meet the requirements.

Zang Desheng, a judge of Chaoyang Court, told reporters that the sharp increase in cases was related to the bank's efforts to crack down on credit card fraud. However, as the major commercial banks, especially joint-stock banks, increased the number of credit card issuers and had defects in the examination and approval of applicants, they failed to fully identify the applicants' credit. Many applicants who did not comply with the issuing conditions successfully applied for credit cards, which would increase the risk of banks.

Worries about credit card business

In recent years, the bank credit card business has been developing rapidly. According to the data released by the China Banking Regulatory Commission in January 2011, the total number of domestic credit cards has reached 210 million, and the annual credit card spanaction volume has reached 5 trillion and 100 billion yuan, of which the consumption amount is 2 trillion and 700 billion yuan. The domestic credit card market has been developing steadily and rapidly. However, under the calm lake, the undercurrent has been surging. Because of the illegal operation of some commercial bank credit card business, it has damaged the legitimate rights and interests of financial consumers, and has also harmed the healthy development of credit card business.

The surge in credit cards is closely related to the increased marketing and promotion of banks. In recent years, no matter the streets or lanes or shopping malls and offices, the appearance of bank credit card salesmen can be seen everywhere. The constantly renovated preferential conditions and gift giving become the bait to attract customers. Some customers who are not qualified have several bank credit cards.

The central bank's data show that as of the end of 2010, credit card credit totaled 2 trillion yuan, an increase of 637 billion 461 million yuan from the end of 2009, an increase of 46.8%. The total amount of credit payable at the end of the year was 449 billion 160 million yuan, an increase of 82.8% yuan over the end of 2009. The total amount of outstanding credit cards is up to 7 billion 689 million yuan over half a year.

In order to regulate the increasingly large credit card business, in January this year, the CBRC issued the "supervision and management measures for credit card business of commercial banks", trying to make the credit card business develop healthfully in the standardized track.