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Provisions Relating to Financial Institutions’ Handling of Consumption Finance
Issuing Agency: Financial Supervisory Commission, Executive Yuan
Date of Issue: December 20, 2006
Ref. No.: Jin-Kuan-Yin-(4)-Zi-09540009500
Subject: When a financial institution engages in consumer finance business, it shall take into account all information of the applicant in the Joint Credit Information Center and the issues, whether the applicant’s economic sources are stable and whether he or she has enough ability to pay back loans and/or debts – the information in the Joint Credit Information Center is not the only basis for the financial institution’s grant or refusal of the application. Kindly acknowledge receipt of this letter and transfer notifications.
Explanation:
1. Pursuant to Article 23 of the “Regulations Governing Institutions Engaging In Credit Card Business“ and Point 6 of the “Regulations Governing the Cash Card Business of Financial Institutions”, a financial institution which engages in credit card or cash card business shall set up a credit review process to approve the line of credit of an applicant. In the same way, the self-disciplinary convention with respect to credit card business of your association also stipulate that if the applicant has the record of compulsory cancellation of cards, which is kept in the Joint Credit Information Center, the card issuing institution shall verify the credit of such an applicant and shall not take such information as the only basis for its grant or refusal of the application for a credit card or cash card.
2. Recently, the public usually reflected that financial institutions still relied on only records of petty arrears of their applicants, which were kept in the Joint Credit Information Center, and refused to approve the applicants’ loan applications, even if the borrowers had finished paying back their debts –the financial intuitions had not completed the credit review process of the applicants to find out their latest financial situations. Therefore, we re-declare the proclamation mentioned in the subject.
To (The Original): The Bankers Association of the Republic of China
To (Copy): Banking Bureau, Financial Supervisory Commission, Executive Yuan, R.O.C. |