The Rise of Financing Companies and BNPL: A Deep Dive into Young People's Debt Crisis

The video “The Life of a Sandow Monkey” unexpectedly revealed the frenzy of financing companies’ excessive borrowing, which led to young people being deeply in debt, what surprised the t -outside world that non-financial institutions included rental companies, financing companies. and BNPL (buy now, pay later), Completely free from the restrictions of banking laws, it lends money to many young “cardless people” without restrictions, and even goes to the campus , causing many young people to accumulate debt before entering society, and even including their parents.

It is not yet clear which authority is in charge of the target business of the financing company. Today, the classification is based on “behaviour”.

However, as the problem worsens, under the leadership of Huang Tianmu, Chairman of the Financial Supervisory Commission, Bank Director Zhuang Xiuyuan recently called the chairman of the three major leasing companies, including Chailease , Yurong, and Herun, hold a meeting and request the rental association through the three operators Create two self-regulation rules, one for BNPL and the other for car loans.

According to the two main rules of self-regulation that the Financial Supervisory Commission asks the Rental Association to put together, it was reminded: liquidated damages and late interest cannot be collected at the same time, and cannot to the interest rate set to exceed the 16% The maximum rate specified in Article 205 of the Civil Code We have indeed understood the main points, but the problem is There are no penalties .

The owner of a private rental business pointed out that there are two main problems with the self-regulation rules set by the Financial Supervisory Commission for rental companies penalties for self-regulation rules.

Co-operative Bank is the registered bank with the largest number of loans among domestic banks, Dong Ruibin, chairman of Heku Financial Holdings, pointed out that many leasing companies do not undertake loans directly, but they are “funding companies” linked to the rental company (according to rumors) Usually called financing companies), in this case, the financing company will not join the rental association On the other hand , even if the rental company is a member of the association, there is no way for the financing company to use the autonomous rules Implementation creates a regulatory blind spot.

At the Yuan Legislative Finance Committee meeting on the 17th of this month, DPP legislators Guo Guowen and Wang Shijian and others condemned the use of “false sales contracts” to provide useful loans to young people or small and small business owners who are short of money. , including a car. (530,000 yuan is interest).

Including People’s Party legislators Huang Shanshan and Guo Guowen are preparing to propose a special “Funding Company Law”. Huang Shanshan bluntly said that the current lending frenzy is a no-man’s land, and startups in Taiwan that borrow money from financial firms will be in trouble.

Dong Ruibin also suggested that BNPL should be managed together with the financing company through the establishment of special laws. And like the United Kingdom, it has moved away from the idea of ”institutional guidance” and turned to the regulation of “behavioral guidance” That is, as long as the company lends money to consumers, regardless of the whether it is a financial institution or not, it will be governed by the same set of rules.

[Faic an ceangal tùsail]

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