AutoBeta(AutoBeta.net)10/23 Report--

On October 23, the China Banking and Insurance Regulatory Commission issued the Circular on issuing Supplementary provisions on the Supervision and Management of financing guarantee companies, which clearly stipulates that "car dealers shall not engage in automobile consumer loan guarantee business without approval."

The Supplementary provisions require that without the approval of the supervision and administration department, automobile dealers, automobile sales service providers and other institutions shall not engage in automobile consumption loan guarantee business, and the stock business that has been carried out shall be properly settled; if it is really necessary to carry out relevant business, a financing guarantee company shall be established to operate the relevant business in accordance with the provisions of the regulations. The supervision and administration department shall step up efforts to crack down on financing guarantee companies that operate in violation of laws and regulations and seriously infringe upon the legitimate rights and interests of consumers (guarantors), and timely inform the banking financial institutions of the relevant situation, jointly protect the legitimate rights and interests of consumers.

Full text of the notice:

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