Regulatory Alerts2022-12-20
Added · Updated
Feedback from Recent Review on Consumer Protection in respect of Digital Platforms for the Application of Credit Products
The Hong Kong Monetary Authority issued this circular to share key observations and sound practices identified during a supervisory review of consumer protection on digital platforms for unsecured loan and credit card applications. The regulator highlights that while digital application channels have surged, authorized institutions must address risks such as impulsive borrowing by improving the display of key facts statements, terms and conditions, and implementing enhanced disclosure measures like double reminders. Institutions are expected to review their digital platforms to ensure they facilitate informed borrowing decisions and incorporate the noted best practices.