Key Points of China Minsheng Bank’s Policies for Debt Collection

China Minsheng Bank (the Bank) strictly abides by the requirements of the Civil Code of the People’s Republic of China, the Personal Information Protection Law of the People’s Republic of China, the Administrative Measures on Personal Loans, and the Implementation Measures of the People's Bank of China for the Protection of Financial Consumers Rights. The Bank has clarified the implementation process and management requirements of collection, and established complete policies and supervision and restraint mechanism.

I. Background

China Minsheng Bank resolutely implements relevant provisions of national laws, regulations, and regulatory rules on the collection methods, timing, targets, and personal information protection. The Bank has standardized the collection process of retail credit business to fully protect consumers’ legitimate rights and interests and to safeguard the healthy development of retail credit business.

II. Main Contents 

(1) Purpose

In accordance with regulatory requirements and in light of the actual business operations, China Minsheng Bank has formulated specialized policies and systems related to the debt collection of retail loans, to effectively protect the legitimate rights and interests of consumers and promote the healthy and stable development of the business.

(2) Scope of application

The debt collection policies of China Minsheng Bank are applicable to all employees of the Bank and cover all types of retail credit businesses and products, including operation loans, housing loans, and consumer loans.

(3) Working mechanism

1.Organization method

China Minsheng Bank adopts an organization method of “professional task division and coordinated implementation” for collection in retail credit businesses, and implements targeted loan collection based on the assessment of customers’ overdue status and credit risk profile.

2. Repayment reminder

Repayment reminder methods of China Minsheng Bank include SMS notifications, smart outbound calls, and mobile banking. According to customers’ actual situations and loan product characteristics, the Bank provides differentiated and attentive repayment reminder services, such as early reminders for loan maturity, reminders for timely repayment, and repayment notifications, to ensure full-process and high-quality loan services.

3.Collection methods

Debt collection methods of China Minsheng Bank include SMS notifications, manual outbound calls and letter reminders, etc. The collection adheres to the principles of “lawful and compliant operation, objectivity and prudence, and privacy protection”. The Bank continuously improves its collection processes and behavior standards, enhances the supervision and management of collection personnel, promptly responds to and appropriately handles customer demands, and consciously maintain social harmony and stability.

III. Consumer Rights Protection

China Minsheng Bank continues to build a solid defense for protecting consumer rights and interests, and has effectively embedded consumer rights protection into the whole process of post-loan collection management. The Bank fulfills its primary responsibility for personal information protection, and further clarifies the standards, norms, and requirements related to collection business management, personnel operations management, system authority management, and data information management, to safeguard the legitimate rights and interests of financial consumers.

1. Equal negotiation. The Bank uses language that is easy for customers to understand, avoiding technical jargon, provides solutions from the perspective of empathy and understanding, and lets customers choose solutions with warmth and care.

2. Standardized and orderly operations. The Bank does not initiate collections to third parties unrelated to the debt, nor impersonate administrative organs or judicial agencies. It does not use threatening, intimidating, or fraudulent language to effectively ensure customer experience.

3. Proactive reminders. The Bank tries its best to reach customers to reduce the cost of forgotten repayments.

4. Improved operational processes. The Bank provides lawful and compliant collection reminders, and has established a fair, courteous and clear communication basis. It reasonably arranges the time of collection reminders, strictly requires collection by legal and compliant methods, while strengthening relevant supervision, assessment and management.

5. Respect for customer privacy. The Bank follows the principles of legality, legitimacy, necessity and integrity in processing customers’ personal information, collects personal information that limited to the minimum scope required for the purpose of processing, and strictly prohibits the leakage of customer information.

6. Strengthened management of outsourced collections. The Bank clarifies the work requirements and operation norms of outsourced collections, and has formulated rules and regulations to reinforce supervision and assessment of outsourced institutions, requires strict implementation of personal information protection and other requirements, to further standardize the control of outsourced collection processes.

IV. Training Requirements

China Minsheng Bank continues to conduct pre-service training and professional capacity enhancement training for post-loan management. The training methods include online specialized learning and offline practical training, with contents covering laws and regulations, financial knowledge, standardized collection scripts, system operation specifications, rules for customer privacy protection, and simulated collection scenarios. The trainings are conducted no less than once a year. The Bank conducts full-process dynamic monitoring of collection personnel behavior, and has formulated a mechanism for performance evaluation, rewards and punishment of collection personnel, in an aim to continuously improve their skills and professional quality.