China Banking Association Issues "Guidelines for Collection of Personal Consumer Loans by Financial Institutions (Trial)"

To standardize the debt collection practices for credit cards and personal consumer credit by member institutions and external collection agencies, and to promote the healthy development of the industry, the China Banking Association has formulated the "Guidelines for Collection of Personal Consumer Loans by Financial Institutions (Trial)" (hereinafter referred to as the "Guidelines").

The "Guidelines" consist of seven chapters and fifty-four articles. From the perspective of strengthening industry self-regulation and standardizing business development, the rules are established across five key areas: defining collection behaviors, setting standards for collection practices, managing external collection agencies, implementing internal controls, and fostering healthy industry growth. Firstly, it defines collection behaviors, providing clear definitions for various collection practices within the industry. Secondly, it establishes standards for collection conduct, comprehensively addressing hot-button issues of public concern such as permissible collection times, frequency, and the acquisition of contact information. The guidelines emphasize being easily understandable and executable, and they set clear prohibited red lines. Thirdly, it strengthens the standardized governance of external agencies, specifying the requirements for member institutions in managing external collection agencies and establishing constraint mechanisms. Fourthly, it enhances the internal control management of collection businesses, demanding a comprehensive improvement in institutions' internal management capabilities to achieve a combination of "treatment and governance." Fifthly, it leverages the self-regulatory role of the association to promote the healthy development of the industry. Addressing key issues in collection work, it encourages in-house collection, promotes technological innovation, and strengthens the governance of illegal and grey-market activities; it also enhances self-disciplinary management, promoting the establishment of information sharing on violations by external collection agencies and joint efforts to combat debt evasion.

In the next step, the China Banking Association will strengthen follow-up guidance, ensure the effective implementation of the "Guidelines," and continue to advance on the new journey of promoting high-quality development in the industry.