New personal loan regulations are about to be implemented, but phenomena such as "head-cut interest" and "hidden fees" by loan assistance platforms still exist.

Why can small platforms continue to evade regulatory measures?

Since the implementation of the “Notice on Strengthening the Management of Internet Loan Assistance Business of Commercial Banks and Improving Financial Service Quality” (hereinafter referred to as the “Loan Assistance New Regulations”) on October 1 last year, industry regulation has continued to tighten in the first half of 2026.

On March 15, the China Banking and Insurance Regulatory Commission and the People’s Bank of China issued the “Regulations on Clear Disclosure of the Total Financing Cost of Personal Loan Business” (hereinafter referred to as the “Personal Loan New Regulations”), aiming to address issues of non-standard and non-transparent disclosure of interest and fee information in personal loan business, better protect the legitimate rights and interests of financial consumers, facilitate the smooth transmission of financial benefit policies, and promote the healthy and regulated development of the industry. The regulation will take effect on August 1, 2026.

According to the regulations, “the total financing cost of personal loan business” refers to all interest and fee costs borne by the borrower related to the loan, including but not limited to loan interest, installment fees, credit enhancement service fees, normal performance costs, as well as potential costs under default situations such as overdue penalty interest. The new regulations further require that online personal loan services must display a clear disclosure form of the total financing cost via pop-up windows, set mandatory reading times, and have borrowers confirm before signing the loan agreement or proceeding with installments.

While the Personal Loan New Regulations impose regulatory requirements on lenders (loan providers), they also specify requirements for partner institutions. For example, beyond the explicitly disclosed cost items, lenders and their partner institutions are no longer allowed to charge any other interest or fee related to the loan from borrowers; for lenders whose partner institutions lose control or cause significant risk losses due to partnership activities, legal and regulatory accountability will be enforced, along with corresponding regulatory measures. Additionally, relevant departments will work together to crack down on illegal intermediary activities in the lending field.

Notably, the Southern Metropolis Daily reporter observed that the regulations clearly state that partner institutions refer to third-party organizations that cooperate with lenders in marketing, customer acquisition, guarantee, and credit enhancement in personal loan business.

In fact, since early 2024, following the China Internet Finance Association’s self-inspection and rectification campaign against disguised high-interest “cash loans” and “套路贷” (套路贷 refers to predatory lending schemes), the chaos in the industry has significantly decreased. However, to this day, some platforms still face numerous complaints about “cutting head interest” and “disguised fee deductions.”

For example, recently, many users complained about a platform called “Jin Lizi” (Golden Lychee), which, under the guise of “travel cards” and “travel products,” is effectively issuing high-interest loans.

（Image screenshot from the Black Cat Complaint Platform）

On March 31, a user on the Black Cat Complaint Platform stated that they purchased a 3,408 yuan travel card on Jin Lizi platform, which needed to be repaid within 15 days, but only 2,500 yuan was actually credited, showing obvious characteristics of head-cutting interest and high-interest lending. On March 23, another user reported that they used the platform to purchase a 2,688 yuan payment red envelope and a 688 yuan so-called travel voucher; it was found that the travel card code was unusable, and only the 2,000 yuan payment red envelope could be used, effectively forming head-cutting interest. Since this year, multiple users have reported similar experiences on this platform. The operator of Jin Lizi is Ningbo Fangyi Yuan Information Technology Co., Ltd.

Similarly, on March 28, a user complained that Yuexianggou platform issued loans under the guise of shopping funds and petty cash, but the actual amount credited was far less than the nominal loan amount, forming head-cutting interest; another user indicated that Yuexianggou used bundling sales to require shopping first and then disbursing the loan, effectively disguised head-cutting interest. The operator of Yuexianggou is Shangrao Tuowei Data Technology Co., Ltd.

（Image screenshot from the Black Cat Complaint Platform）

On February 21, a user purchased a mobile phone on Xinmi Youxuan, paying 436.94 yuan in signing and notarization fees, but after payment, the order was canceled and the funds were not refunded; on February 23, another user paid 731.54 yuan in signing and notarization fees and also had their order canceled. The operator of Xinmi Youxuan is Haikou Zhusheng Network Technology Co., Ltd.

（Image screenshot from the Black Cat Complaint Platform）

On February 26, a user was unknowingly enrolled as a member on Aiyong Mall, with about 300 yuan deducted; Aiyong Mall’s operator is Shenzhen QiaKe Technology Co., Ltd.; on March 20, a user was charged 999 yuan under the guise of opening a membership on Yuegou Youxuan, operated by Shanghai Ruijie Zhinet Technology.

The Southern Metropolis Daily reporter sent interview requests to Shangrao Tuowei Data, Shenzhen QiaKe, and other companies, but had not received responses by the time of publication.

Previously, in the article “Installment Shopping Frenzy: Disguised Lending with Interest Rates Up to 60%, Well-Known Platforms Intend to Exit,” the Southern Metropolis Daily analyzed that to evade interest rate caps, some platforms began to use “installment shopping” and “enjoy now, pay later” as pretexts, by inflating product prices and selling gift cards, gold, and high-end mobile phones to indirectly issue loans.

On top of this, some of the platforms mentioned earlier have further exhibited features such as “ultra-short repayment periods,” “disguised fee deductions,” and “direct head-cutting interest.”

It is worth noting that most of these platforms are operated by relatively small companies. After large-scale complaints, they may simply rebrand and start anew. Moreover, these platforms also play new tricks by using travel cards, notarization fees, and other methods to disguise fee deductions. The Southern Metropolis Daily will continue to monitor these developments.

Reporting: Southern Metropolis Daily Video Reporter Miao Lingyun