Regulatory Alerts2010-08-16
Added · Updated
Marketing through Third Parties of Instalment Payment Plans involving Pre-payment for Goods or Services
The Hong Kong Monetary Authority issued this directive to require Authorized Institutions to enhance transparency and risk management for installment payment plans marketed by third parties. The regulator mandates specific documentation standards, including clear disclosure of loan terms and the absence of chargeback protection, alongside rigorous merchant monitoring and compliance auditing. These measures aim to prevent customer disputes and reputational damage arising from merchant insolvency or failure to deliver contracted goods and services.