Core Insights - The recent changes in the internet lending industry are primarily driven by the implementation of new regulations, which have led to a restructuring of the industry ecosystem [1][3][4] Group 1: Changes in Collection Practices - Borrowers have reported a significant decrease in collection calls and messages, with some platforms ceasing collection efforts altogether [1][2] - The reduction in collection activity contrasts sharply with the tightening of loan availability, particularly for high-risk borrowers who are facing loan withdrawals [2][3] Group 2: Impact of New Regulations - The new regulations impose stricter responsibilities on banks regarding internet lending, including a list-based management of partner institutions and rigid control over financing costs [3][4] - Banks are now required to enhance post-loan collection management and correct any violations promptly, which has led to a more cautious approach from both banks and lending platforms [3][4] Group 3: Challenges for High-Risk Borrowers - High-risk borrowers are experiencing a significant reduction in available financing options, as many regional banks have halted internet lending activities [4] - The traditional "loan-for-loan" model is becoming unsustainable, with borrowers facing increased repayment pressures and a cycle of debt that is difficult to escape [4][5] Group 4: Consequences for Borrowers - Many borrowers initially seeking small loans for emergencies have seen their debt balloon due to high interest rates and compounding [4] - Over 80% of online loan users face higher interest rates or outright rejections when applying for subsequent housing loans, effectively locking them out of the formal financial system [5]

Core Viewpoint - The regulatory body is accelerating its investigation into the "24% + rights" model in the lending industry ahead of the implementation of the new Internet lending regulations on October 1, indicating a shift towards stricter compliance and oversight in the consumer finance sector [1][2][3] Regulatory Focus on Comprehensive Costs and Compliance - The investigation targets the impact of membership rights fees on borrowers' overall financing costs and whether there are attempts to circumvent the 24% interest rate cap [2][3] - Complaints regarding forced bundling and hidden fees have surged, with over 5,000 complaints reported [2] - The new regulations require clear disclosure of service fees and prohibit any form of disguised interest rate increases [2][3] Industry Transformation and Compliance Challenges - The extension of the investigation to consumer finance companies reflects the regulatory body's commitment to ensuring compliance across the entire lending industry [3][4] - Consumer finance companies face significant challenges in maintaining business sustainability while adhering to new compliance requirements, especially given their focus on higher-risk borrowers [1][4] Risk Pricing and Compliance Development - The strict enforcement of the 24% interest rate cap poses unprecedented pressure on consumer finance companies, limiting their ability to price for risk effectively [4][5] - The "24% + rights" model is seen as a transitional solution that highlights the tension between sustainable business practices and regulatory compliance [4][5] Future Pathways: Technological Solutions and Differentiated Regulation - The industry may need to leverage technology to reduce operational costs and improve risk assessment, thereby decreasing reliance on high-interest rates [7] - There is a call for a more nuanced regulatory framework that allows for differentiated pricing based on risk levels, rather than a blanket interest rate cap [5][7] - The ultimate goal is to create a transparent and sustainable credit market that provides affordable financial services to borrowers in need [7]