China Banking and Insurance Regulatory Commission (CBRC) : Benz Auto Finance infringed on the legitimate rights and interests of consumers and has made rectification as required

2022-05-04 0 By

China Banking and Insurance Regulatory Commission (CBRC) issued a notice by CBRC Consumer Rights And Interests Protection Bureau on Mercedes-benz Auto Finance Co., Ltd. infringing on the legitimate rights and interests of consumers on February 10.The circular pointed out that the company’s promotional materials did not specify the loan product provider;The disclosure of service price information does not meet the requirements;The standard terms for the authorized use of consumer information do not follow the legal, proper and necessary principles;Inadequate enforcement of consumer protection review “four crimes”.Circular of the Consumer Rights Protection Bureau of the China Banking And Insurance Regulatory Commission on Mercedes-Benz Auto Finance Co., LTD. ‘s Infringement on the Legitimate Rights and Interests of ConsumersIn order to improve the transparency of financial regulation, strengthen market supervision and restraint, and effectively safeguard the legitimate rights and interests of financial consumers, mercedes-benz Auto Finance Co., LTD. (hereinafter referred to as Mercedes-Benz Auto Finance) is hereby notified of the infringement on the legitimate rights and interests of consumers found by on-site inspection:I. The promotional materials do not clearly state that the loan product provider, Benz Auto Finance, provided the “‘ Can’t Hide ‘series GLA Friends Circle poster – General Version” promotional materials to dealers in July 2019, which put the company’s loan products and mercedes-benz Leasing Co., LTD.’ s rental products on the same page.However, it is not specified that the loan product is provided by Benz Auto Finance;In January 2020, the promotional materials of “Yes Series Friends Circle posters” provided to dealers promoted both loan products and leasing products in the name of “Benz Finance”, only indicating that “Benz Finance” refers to Benz Auto Finance and Benz Leasing “.The publicity materials do not clearly explain the behavior of the loan product provider, which is not in accordance with the relevant provisions of the Guidance on consumer Rights protection in the banking industry.Ii. Disclosure of Service Price Information does not meet the requirements. Mercedes-benz Auto Finance has disclosed the Notice of Mercedes-Benz Auto Finance Co., LTD. ‘S Charging Project on its official website, and the specific path is as follows: Car purchase support – Financial Services – Compliance publicity, which is listed in the third directory on its official website.The failure of Benz Auto Finance to publicize the service price information in an eye-catching position on the homepage of the website is not in accordance with the relevant provisions of The Measures for the Administration of Commercial Bank Service Price.During the inspection period from May 2019 to December 2020, the Auto Loan Mortgage Contract provided by Mercedes-Benz Auto Finance and signed with consumers clearly states that the standard terms for the authorized use of consumer information do not follow the legal, legitimate and necessary principles.Consumer Authorization The Company may collect, disclose and permit the use of consumer information from any company within its group and other third parties authorized by or providing services to the Lender.This authorization shall survive the term of the Contract and the termination or rescission of the Contract.The above on the scope of the disclosure of consumer information, the use of consumer information such as the length of the clause in the disputed contract did not follow the principle of legal, proper, necessary, do not meet the consumers’ rights and interests protection act “The General Office of the State Council on strengthening the financial consumers’ rights and interests protection work guidance” and “commercial bank information technology risk management guidelines” rules.In the internal product review process of Mercedes-Benz Auto Finance, the review records of 2 products were only signed by the consumer protection commissioner, and no clear and specific review opinions were put forward in accordance with regulatory requirements.The marketing guidance materials and training materials made by financial consultants have not been reviewed for the protection of consumer rights and interests of the company.The review and implementation of the protection of consumer rights and interests in finance of Mercedes-Benz Automobile is not in place, which does not conform to the relevant provisions of the Guiding Opinions of THE CBRC on Strengthening the Construction of the Working System and Mechanism for The Protection of Consumer rights and interests of Banking and Insurance Institutions.The above behavior of Benz Auto Finance infringes consumers’ right to know and independent choice, and has hidden risks of consumer information security.Mercedes-benz Auto Finance has been reformed in accordance with regulatory requirements.All banking and insurance institutions should strictly implement laws, regulations and regulatory systems on the protection of consumers’ rights and interests, earnestly assume the principal responsibility for the protection of consumers’ rights and interests, establish and improve systems and mechanisms for the protection of consumers’ rights and interests, carry out business activities in accordance with the law, and safeguard the legitimate rights and interests of financial consumers.CBRC Consumer Rights And Interests Protection Bureau February 9, 2022