(Yicai Global) Nov. 21 -- Although the government has not yet published regulations on the cash loan industry, the market has become increasingly prudent, Tencent Finance reported.
An executive at a cash loan platform said that Zhima Credit, Ant Financial Services Group’s credit reference unit, sent the group a termination of services notice and will end its cooperation with the company on Dec. 22., as Zhima Credit has received several user complaints that the firm has charged interest rates above the statutory ones and has improperly conducted debt collection.
Ant Financial Services Group said recent inspections show that some merchants have engaged in the aforementioned activities and failed to comply with agreements, prompting Zhima Credit to halt its collaborations with such merchants. Zhima Credit has clear requirements for its partners. It will continue to check merchants’ qualifications, products and services and will immediately stop working with ones it finds have similar problems.
Ant Financial did not disclose the number of cash loan platforms it has severed ties with.
Zhima Credit generates credit scores for individual users based on five factors -- credit history, behavioral preferences, ability to perform contracts, identity and characteristics, and personal connections. Such scores range from 350 to 950. Users with better credit get higher scores.