It is legal. :
1. Many people think that Jinshang Consumer Finance is a rogue company and a scam company, and it must not be a formal financial institution. However, it is one of the few licensed consumer finance companies in China, and was among the first 14 to obtain a license.
2. According to public information: a national licensed consumer finance company approved by the China Banking and Insurance Regulatory Commission and a member of the Consumer Finance Professional Committee of the China Banking Association. It was established on February 23, 2016 and is headquartered in Taiyuan, Shanxi. It is the 14th consumer finance company in the country approved by the China Banking Regulatory Authority. Moreover, one of the shareholders of Jinshang Consumer Finance is a formal bank, Jinshang Bank, which holds 40% of the shares. Its second largest shareholder is Beijing Qifei Xiangyi Business Consulting Co., Ltd., which holds 25% of the shares. This is one of the many companies under Zhou Hong_. And Zhou Hong_ was known as the inventor of rogue software in the past, but now his company is committing such rogue behavior again. The two temperaments really match each other!
3. The Taiyuan Central Branch of the People's Bank of China made a penalty decision to "suspend the inquiry authority of the credit reporting system with immediate effect" on the involved institution Jinshang Consumer Finance Co., Ltd., and ordered it to make internal rectifications and implement them effectively. various regulatory requirements.
As a licensed institution, the right to check credit information is the basis for Shanxi Merchants Consumer Finance’s mortgage business. Now that the right to check credit information is suspended, it means that the main business of Shanxi Merchants Consumer Finance may have to into a standstill.
The business development and profit performance of Jinshang Consumer Finance has always been among the "last three" among domestic consumer finance companies. According to the 2020 annual report disclosed by its shareholder Yuxin Technology, the revenue of Jinshang Consumer Finance in 2020 546 million yuan, an increase of 46.77% from 372 million yuan in 2019, and net profit of 54 million yuan, an increase of 3.85% from 52 million yuan in 2019. Revenue increased 46.77% compared to 2019 to 546 million yuan. It is still the third from the bottom among consumer finance companies that currently publish data. Only Jinmei Consumer Finance and Suning Consumer Finance have lower revenue. Moreover, Shanxi Merchant's consumer finance business, which has seen a huge increase in revenue, barely increased profits, and its net profit only increased by 2 million yuan.
However, this is only a superficial phenomenon. A large increase in revenue means an increase in loan targets. However, in fact, the annual interest rate of Shanxi Merchant Consumer Finance is generally much higher than 20%, which essentially means the rejection and rejection of high-quality customers. Absorbing a large number of low-quality customers, the hidden overdue risk must be far greater than the temporary increase of 2 million in net profits.
This is essentially an act of drinking poison to quench thirst. Behind the "ten years of professional chicken" writing of customer credit reports is not only the confusion of internal control management of Jinshang Consumer Finance, but also the company's anxiety about business and hunger for profits.