Due to the failure of four inspections, Mercedes-Benz Auto Finance was named by the Banking and Insurance Regulatory Commission.
In order to improve the transparency of financial supervision, strengthen market supervision and constraints, and effectively protect the legitimate rights and interests of financial consumers. On February 10, the Consumer Rights and Interests Protection Bureau of the China Banking and Insurance Regulatory Commission (CBIRC) issued a circular on the infringement of the legitimate rights and interests of consumers by Mercedes-Benz Auto Finance. The circular pointed out that the company mainly has the following four problems, including the publicity materials do not clearly state the loan product provider, the service price information disclosure does not meet the requirements, the standard terms of the authorized use of consumer information do not follow the relevant principles, and the implementation of the consumer rights and interests protection review is not in place.
Mercedes-Benz Auto Finance was notified by the Banking and Insurance Regulatory Commission
Due to infringement of the legitimate rights and interests of consumers
Specifically, mercedes-Benz auto finance promotional materials do not clearly state the loan product provider. In July 2019, mercedes-benz auto finance provided dealers with the "'can't hide' series of GLA circle of friends poster - universal version" promotional materials, placing the company's loan products and Mercedes-Benz leasing products on the same page, but did not clearly state that the loan product provider is Mercedes-Benz Auto Finance; the "Yes Series Circle of Friends Poster" promotional materials provided to dealers in January 2020, in the name of "Mercedes-Benz Finance" at the same time to promote loan products and leasing products, only prompt "' 'Mercedes-Benz Finance' refers to Mercedes-Benz Auto Finance and Mercedes-Benz Leasing". The promotional materials do not clearly explain the behavior of the provider of the loan product, which does not comply with the relevant provisions of the Guidelines for the Protection of Consumer Rights and Interests in the Banking Industry.
Second, the disclosure of service price information does not meet the requirements. Mercedes-Benz Auto Finance disclosed on the official website the "Mercedes-Benz Auto Finance Co., Ltd. Charging Project Announcement", the specific path is: car purchase support - financial services - compliance publicity, listed in the official website under the 3rd layer directory. Mercedes-Benz Auto Finance's failure to publish service price information in a conspicuous position on the homepage of the website does not comply with the relevant provisions of the Measures for the Administration of Service Prices of Commercial Banks.
Third, the standard terms and conditions related to the authorized use of consumer information do not follow the principles of legality, legitimacy and necessity. During the inspection period from May 2019 to December 2020, the Auto Loan Mortgage Contract provided by Mercedes-Benz Auto Finance and signed with the consumer stated that the consumer authorized the company to collect, disclose and allow the use of consumer information to any company within its group, a third party authorized by other lenders or providing services to the lender. This authorization clause is valid for the duration of the contract and after the termination or rescission of the contract. The above-mentioned provisions on the scope of disclosure of consumer information and the length of time for using consumer information do not follow the principles of legality, legitimacy and necessity, and do not comply with the relevant provisions of the Consumer Rights and Interests Protection Law, the Guiding Opinions of the General Office of the State Council on Strengthening the Protection of Financial Consumers' Rights and Interests, and the Guidelines for Information Technology Risk Management of Commercial Banks.
Fourth, the review of consumer rights and interests protection is not in place. In the product review process within Mercedes-Benz Auto Finance, the audit records of the two products were only signed by the consumer rights protection commissioner, and no clear and specific review opinions were put forward in accordance with the regulatory requirements. The marketing guidance materials and training materials produced by financial consultants have not been reviewed by the company for consumer rights protection. The review of consumer rights and interests protection of Mercedes-Benz Auto Finance is not in place, and does not comply with the relevant provisions of the Guiding Opinions of the China Banking and Insurance Regulatory Commission on the Construction of Institutional Mechanisms for Banking and Insurance Institutions to Strengthen the Protection of Consumer Rights and Interests.
The Consumer Rights and Interests Protection Bureau of the Banking and Insurance Regulatory Commission pointed out that the above-mentioned acts of Mercedes-Benz Auto Finance infringed on consumers' right to know and their right to make independent choices, and there were hidden dangers in consumer information security risks. Mercedes-Benz Auto Finance has been rectified in accordance with regulatory requirements. All banking and insurance institutions should strictly implement the laws, regulations and regulatory systems for the protection of consumer rights and interests, earnestly assume the main responsibility for the protection of consumer rights and interests, establish and improve the institutional mechanism for the protection of consumer rights and interests, carry out business activities in accordance with the law and compliance, and safeguard the legitimate rights and interests of financial consumers.
Mercedes-Benz Auto Finance frequently received fines
In recent years, Mercedes-Benz Auto Finance has frequently received fines. On December 3, 2021, the Beijing Banking and Insurance Regulatory Bureau imposed an administrative penalty of 400,000 yuan on Mercedes-Benz Auto Finance Co., Ltd. due to the interruption of the core business system exposing the lack of business continuity management and serious violations of prudent business rules and other violations of laws and regulations.
On September 11, 2019, Mercedes-Benz Auto Finance was also imposed an administrative penalty of 800,000 yuan by the Beijing Banking and Insurance Regulatory Bureau, and the main violations of laws and regulations included serious deficiencies in the management of outsourcing activities.
According to the official website, Mercedes-Benz Auto Finance is committed to providing Chinese customers and dealer partners with flexible and diverse auto finance products, covering Mercedes-Benz passenger cars and Mercedes-Benz light commercial vehicles.
Previously, the CbRC had stated that auto finance companies should strictly comply with national laws, regulations, rules and relevant regulatory provisions when providing services, follow the principles of openness, fairness, honesty and credit, and should publicize the charging items and standards in a conspicuous position in various relevant business places and the company's official website, and actively accept social supervision.
Strengthen regulatory guidance for auto finance companies
In fact, in May last year, the Beijing Banking and Insurance Regulatory Bureau issued a notice on further strengthening the protection of consumer rights and interests of consumer finance companies in auto finance companies under its jurisdiction.
The circular pointed out that in order to further protect the legitimate rights and interests of financial consumers, regulate the behavior of auto finance companies and consumer finance companies in providing consumer financial products and services, and maintain a fair and just market environment. The Beijing Banking and Insurance Regulatory Bureau will increase the degree of attention and consolidate the main responsibility for consumer rights and interests protection. All institutions should incorporate the protection of financial consumer rights and interests into corporate governance, corporate culture construction and business development strategies, improve the working framework for the protection of financial consumer rights and interests, establish and improve the whole process control mechanism for the protection of financial consumer rights and interests, ensure the effective implementation of relevant requirements in all business links of loans, strengthen the post-supervision mechanism of internal supervision departments, and timely discover and correct relevant problems that are not conducive to the protection of financial consumers' rights and interests.
At the same time, it is necessary to improve price management and establish and improve the information disclosure process of financial services. To improve the information disclosure process of service prices, the relevant service charges should be disclosed on the company's official website. Auto finance companies should also publicize consumer finance-related services, service contents and service prices through various channels and methods at each cooperative dealership.
In terms of contract management, consumers are safeguarded with the right to know and the right to make independent choices. The standard loan terms contract of each institution should draw the attention of financial consumers to the content of major interest on the front page of the contract in a manner sufficient to attract the attention of financial consumers.
In addition, the notice also regulates the management of behavior and strengthens the education of consumer financial knowledge. Each institution shall regulate all kinds of collection behavior in accordance with law, and must not use intimidation, threats, or other means to collect loans; for bad information arising from the borrower's failure to repay the loan in full and on time, the lender shall inform the borrower in accordance with relevant provisions before submitting it to the basic financial credit information database, and send a reminder to the borrower to report the bad information through text messages, telephones, WeChat, and other means.
The Beijing Banking and Insurance Regulatory Bureau said that all auto finance companies and consumer finance companies under its jurisdiction should take this opportunity to establish and improve a long-term mechanism for the protection of the rights and interests of financial consumers, actively safeguard the legitimate rights and interests of financial consumers, and maintain an efficient and standardized industry image. (China Fund News)