Students, low- income groups should avoid over- spending during festivals: regulator

In response to excessive consumption facilitated by financial products such as loans or credit cards, the China Banking and Insurance Regulatory Commission ( CBIRC) on Tuesday warned of potential risks that consumers may face and provided new guidelines, as holidays including the Spring Festival, which are high- risk periods for internet fraud.

Authorities highlighted the potential for misleading information, such as some lenders' practice of deliberately obscuring the actual cost of debt, which infringes on consumers' right to know and is easy to misunderstand.

The Global Times noted a vulgar video advertisement from a famous online loan platform, showing that a worker's wife feels unwell and would like to open a window on the plane. When the flight attendant asks him to upgrade his ticket, he finds he doesn't have enough money. Then another passenger takes out his phone and tops up the money through easy procedures on that platform.

A Weibo blogger said audiences usually see this kind of vulgar advertisement, particularly in the online loan and cosmetology sectors that offer false ads to lure public attention.

Consumers may fall into the trap of "blind consumption" resulting from highly persuasive marketing. For example, some teenagers borrow money from internet platforms to buy gifts for their friends or their idols.

Some platforms illegally collect and misuse customers' information through online advertisements to attract traffic and gain publicity, compromising users' online security.

Students and low- income groups are advised to guard against excessive spending, as the ease of bank credit may lead to the accumulation of unmanageable debt.

Based on these risks, the CBIRC suggested that consumers moderate consumption habits, focus on actual needs, avoid overreliance on borrowing, and choose well established, legitimate channels to access financial services.