Financial regulators recently held talks with the operators of five online lending platforms, including Fenqile, Qifu Jietiao, Niwodai Jiekuan, Yixianghua, and Xinyongfei, addressing issues in the internet-assisted lending sector. The new rules for assisted lending, implemented since October 1, 2025, have been in effect for five months. These regulations aim to standardize industry practices, clarify responsibilities between platforms and financial institutions, and curb misconduct. However, complaints against related platforms remain high on third-party channels like the Hei Mao投诉 platform, with one platform accumulating over 160,000 complaints.
Coinciding with World Consumer Rights Day, supervision of personal loans has intensified. On March 15, the National Financial Regulatory Administration and the People's Bank of China jointly issued the "Regulations on Disclosure of Comprehensive Financing Costs for Personal Loan Business." The rules require that all costs associated with personal loans, including interest, installment fees, credit enhancement services, and potential default penalties, be included in the comprehensive financing cost and clearly disclosed.
According to regulatory officials, the regulations will take effect on August 1, 2026, allowing lenders time to adjust business processes, systems, and agreements. Existing and new loans will be handled under a "grandfathering" principle. Wang Pengbo, chief analyst at Boint Consulting, noted that this move signals continued efforts to rectify irregularities in the personal loan market and enforce transparent pricing, helping steer the industry toward compliance.
Numerous platforms face thousands of complaints, with accusations of excessive marketing, aggressive collection practices, and disguised usury. One consumer reported purchasing a ¥3,000 "red envelope" service package from a lending platform last November but only receiving ¥2,000 in usable funds, with the remainder tied to useless vouchers. The borrower was required to repay nearly ¥990 per month over three installments.
Another consumer claimed that after being guided to purchase multiple "red envelope" packages totaling ¥9,000, only ¥6,800 was accessible, with the rest comprising largely unusable benefits. The total repayment over three installments exceeded ¥9,800, leading to allegations of hidden interest, usury, and bundled sales. On March 14, a listed package priced at ¥874 included a ¥500 Alipay voucher and a ¥374 coupon bundle offering discounts on video memberships, e-commerce purchases, and home services. The product allowed zero-down payment and installment repayment over 12 months, totaling ¥811.32.
Many users also reported personal information leaks. Zhao Yang (pseudonym) stated that after testing a loan quota on an advertised platform, he began receiving three to four marketing calls daily from different lenders, despite not submitting a formal application. He expressed concern that his contact details appeared to have been shared or sold. A test by reporters confirmed that platforms may share user information. After downloading the Yixianghua app and providing personal details, including contact list access, the reporter received promotional messages and calls from multiple lenders, including one of the five platforms addressed by regulators.
Aggressive debt collection is another common issue. Wang Yu (pseudonym) reported that after defaulting on a ¥7,000-plus loan in January, he received over 20 daily collection calls, some from private numbers sending abusive messages, severely disrupting his life.
Regulators have instructed platform operators to standardize marketing, clearly disclose loan costs, adhere to personal information protection laws, conduct lawful collections, and improve complaint resolution mechanisms to safeguard consumer rights.
Most of the five platforms are backed by listed companies. For example, Jiayin Group Inc., operator of Niwodai Jiekuan, reported Q3 2025 revenue of ¥1.47 billion, up 1.75% year-on-year, with a net profit of ¥376 million, a 39.64% increase.
The personal loan sector faces rising compliance demands. The newly issued regulations require lenders to provide a comprehensive financing cost disclosure form, detailing all fees and annualized costs, which borrowers must confirm before finalizing loans. Online applications must display this information via pop-up with a mandatory reading time. The rules also mandate that lenders manage third-party partners, such as marketing and guarantee services, ensuring all parties comply with cost disclosure requirements.
Wang Pengbo emphasized that these measures enforce previously highlighted disclosure duties, protecting consumers' right to information and empowering informed decision-making. He added that transparent cost reporting will influence pricing and marketing strategies across banks, consumer finance firms, and online platforms, promoting industry-wide standardization and long-term stability.
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