Alipay’s consumer loan service provider Huabei to access credit information system


Recently, a number of users of Ant Check Later or Huabei, an Alipay consumer credit product, reported receiving an upgrade prompt requiring users to agree to authorize the company to access their financial credit information. If users do not choose to upgrade, it may affect the use of the service.

Launched in April 2015, Huabei serves as a virtual credit card for users to enjoy a shopping experience after payment. When users make their purchases, they can advance Huabei’s quota and refund the payment on the 9th of the next month after confirming receipt. The interest-free period can be up to 41 days.

What you should know is that many users choose to use Huabei because even though it is sometimes late, some Alipay functions that users will not pay much attention will be affected. But now, Huabei began to access batch credit information, commercial banks and credit financial institutions have richer dimensions when assessing user qualifications.

Huabei replied that, under the principle of user authorization, the relevant information of end users will gradually be integrated into the credit information system. By maintaining good usage habits, users’ credit records will not be affected. If there is any objection after authorization, users can terminate it by shutting down Huabei.

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Last year, Huabei began to promote its efforts to access the credit information system. On June 3 of this year, Chongqing Ant Consumption Finance Co., Ltd. has been approved by the China Banking and Insurance Regulatory Commission to start accessing end-user credit histories. Huabei is also part of the company and must submit the relevant credit information of its users to the credit reporting system like any other authorized financial institution.

Ant Group was called to a regulatory meeting by the People’s Bank of China (PBOC) in April. “Ant must cut any inappropriate link between Alipay and other financial products, such as Huabei and Jiebei, and correct irregular practices such as the integration of credit activities into payment links,” the PBOC said.

Huabei posted a notice through its official Weibo account on Wednesday, stating that credit information is one of the essential bases for financial institutions to assess the repayment capacity of their users when providing services to them. Based on obtaining the user’s authorization, the user’s information relating to Huabei will be gradually integrated into the credit investigation system, including the date of opening the account, the line of credit, the use of the line of credit and the repayment situation, among others.

In terms of frequency, Huabei’s account information will be summarized and integrated into the credit investigation system on a monthly basis, without specific consumption information such as content and time.

Currently, some users can check their credit records held by Huabei in their credit reports. Huabei’s data shows that over 99% of its users have records in good standing.

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