Core Viewpoint - The People's Bank of China (PBOC) has announced a one-time credit repair policy aimed at supporting individuals with damaged credit who actively repay their debts, effective from January 1, 2026 [2][3] Group 1: Policy Details - The policy will be implemented in an "automatic recognition" mode, where the PBOC's credit center will automatically identify and adjust overdue records without requiring individual action [2] - Individuals who fully repay overdue debts by November 30, 2025, will have their overdue information not displayed in the financial credit information database starting January 1, 2026 [2] - For those who repay overdue debts between December 1, 2025, and March 31, 2026, the overdue information will not be displayed by the end of the following month [2] Group 2: Implications for Individuals - The policy is seen as a win-win for the public, allowing individuals to break free from the cycle of lifelong restrictions due to past credit issues [3] - It sends a clear message that credit can be repaired if individuals fulfill their obligations within a specified timeframe, encouraging proactive debt repayment [3] - Repairing credit is viewed as restoring an individual's financial "passport," which can improve their quality of life and personal development [3] Group 3: Implications for Financial Institutions - The credit repair policy encourages borrowers to repay overdue debts, potentially improving banks' asset quality and promoting inclusive finance [4] - Financial institutions can re-engage with previously "defaulted" individuals who have repaired their credit, expanding their customer base with growth potential [4] - The policy is expected to enhance the social credit system and stimulate consumer spending and economic vitality, benefiting the overall economy [4] Group 4: Clarifications on the Policy - The credit repair initiative is not a "credit washing" scheme; it involves a conditional, procedural, and time-limited process aimed at educating and assisting non-malicious defaulters [4] - The system will automatically process eligible individuals without any fees or third-party involvement, emphasizing the need for residents to be cautious of potential scams [4]