What are the changes in the new credit card policy regulations in 2018

Recently, the People's Bank of China issued new regulations for the credit card business, including overdraft interest rate range management, cancellation of late payment fees, cancellation of overdraft interest-free period and Regulations such as minimum repayments have aroused widespread concern in the market.

After the central bank released new credit card regulations, consumers discovered that there is a possibility of a 30% discount on overdraft interest rates. Previously, the central bank stipulated that the overdraft interest rates should be unified at 0.5% of the daily interest rate.

"If the overdraft interest rates of various banks are different, I will shop around. The one with the biggest discount is undoubtedly the most attractive." Mr. Chen, a Beijing citizen who is used to buying electronic products in installments with credit cards, told reporters, "The lowest deduction is After repaying the amount, if you delay the overdraft for 10,000 yuan for 30 days, you will have to pay an interest of 150 yuan. A 30% discount can save you 45 yuan.”

The reason why financial consumers are so concerned about overdraft interest rates is under the guidance of the central bank. , commercial banks are about to take the first step in marketizing credit card interest rates.

This time the central bank carefully chose to set upper and lower limits for transition. The central bank stated that currently the credit card risk control and pricing capabilities of various card issuers are uneven, and providing upper and lower interest rate guidance will help prevent individual card issuers from blindly cutting prices and engaging in price wars.

"For banks, the implementation of range management gives commercial banks a certain degree of freedom to meet the diverse needs of cardholders and promote refined business development, which will greatly stimulate the vitality of the credit card market." Everbright Bank Credit Card Center Dai Bing, general manager, said that although overdraft interest rate discounts will have a certain impact on credit card revenue in the short term, banks can gain more customers through differentiated pricing, which will allow banks that meet market needs to achieve greater development in the long run.

If a credit card overdraft has passed the interest-free period, you need to pay interest. If the minimum repayment amount is not reached, an additional 5% late payment fee will be paid, which is much higher than the interest. If this overdraft "maxes out" the card, an over-limit fee will be charged. However, starting from January 1, 2017, liquidated damages will replace late payment fees and over-limit fees will also be cancelled.

Zhang Xiaotian, an analyst at Yinsu.com, believes: “The cancellation of late payment fees and changing them to liquidated damages reflects the equality of status between the cardholder and the card issuer. The two parties have changed from an administrative relationship to a civil relationship. This also reflects the central bank’s Implement the direction of marketization and advocate the management idea of ????the spirit of contract.”

Dai Bing believes that in the past, late payment fee rates were unified. After liquidated damages were replaced, they differed not only between banks but also within the same bank. Different customer groups, or even each different customer, may have different liquidated damages policies, which places higher requirements on banks’ ability to predict customer risks.

The new credit card regulations also remove restrictions on interest-free repayment periods, remove restrictions on minimum repayments, relax restrictions on credit card overdraft interest calculation methods, and relax restrictions on overpayments. Restrictions on interest calculation... Corresponding to this series of "cancellation" and "relaxation", card issuers are ushering in more and more "independent determinations", "independent decision-making space", "flexible combinations" and "agreements".

Li Chao, an analyst at iResearch Consulting, believes that after more than 30 years of development, the competitive model of commercial bank credit cards is gradually withdrawing from the market. The new credit card regulations are guiding commercial banks to increase their innovation efforts to meet the personalized and diverse needs of cardholders and usher in a new era of differentiation in credit card products and services.

“Differentiated services will bring a new development space to the current credit card market with serious product homogeneity, but it will also bring many challenges.” Dai Bing said that innovative products and services must involve Large-scale system transformation requires more and more accurate model settings, stronger operation and maintenance and analysis capabilities to support more flexible pricing strategies, and how to effectively manage risks behind differentiated products and services. A new topic.

“In this regard, banks should cooperate more with Internet institutions. With the launch of consumer credit products by Internet institutions such as JD Baitiao and Ant Huabei, the two parties have a lot of cooperation in innovative services and risk prevention and control. Space." Li Chao said.

Experts believe that the new credit card regulations will further guide banks to improve the card use experience, reduce customer interest expenses, and safeguard the legitimate rights and interests of consumers. In the future, banks may change their "own way of doing things" and start to solve a series of service and charging problems such as full penalty interest, sleep card charges, easy card application and difficult cancellation, and full handling fees for early repayment in installments.

The new credit card regulations have brought new changes to citizens’ lives

Recently, the People’s Bank of China issued the “Notice on Matters Concerning the Credit Card Business” (hereinafter referred to as the “Notice”), which regulates the credit card business. New regulations have been made on overdraft interest, interest-free period, minimum repayment amount, fee collection, etc., which have brought new changes to citizens' lives.

Overdraft interest may be reduced. At present, the credit card overdraft interest rate of various banks is generally 0.05% per day. The "Notice" cancels the current unified credit card overdraft interest rate standards and implements upper and lower limit range management of overdraft interest rates. The upper limit is 0.05% of the daily interest rate and the lower limit is 30% of the daily interest rate of 0.05%. After the new regulations are implemented, citizens with credit cards can compare multiple banks and choose a bank with a relatively low overdraft interest rate.

The bank can determine the interest-free period and minimum repayment amount at its discretion. According to relevant regulations, the current interest-free period for credit cards is generally about 50 days, and the minimum repayment amount must not be less than 10% of the overdraft consumption balance of the month. The new regulations cancel the restrictions on the interest-free period and the minimum repayment amount. Each bank can decide the interest-free period and the minimum repayment amount based on its own situation and the credit status of the cardholder. This means that in order to improve market competitiveness, some banks may launch credit cards with ultra-long interest-free periods, and the minimum repayment amount may be lower. This is a good thing for cardholders.

The fee is charged once and will not be compounded. The "Notice" stipulates that card issuers shall not charge interest on the liquidated damages, annual fees, cash withdrawal fees and other service fees collected from cardholders. At present, most of the interest calculation methods of domestic banks are compound interest, that is, compound interest, which may result in sky-high debts. This situation will no longer exist in the future, which is very beneficial to cardholders.