Core Viewpoint - The implementation of the personal credit repair policy in 2026 has created opportunities for overdue borrowers, but it has also attracted underground "credit repair" operations that exploit vulnerable individuals [1][3]. Group 1: Policy Implementation and Exploitation - The personal credit repair policy allows for the removal of overdue records from 2020 to 2025, provided the overdue amount does not exceed 10,000 yuan and is settled by March 2026 [3]. - Some intermediaries claim they can "break through the 10,000 yuan limit" and offer to "fully repair credit," misleading borrowers and charging high fees [3][5]. - These intermediaries often charge consultation fees ranging from 2% to 10% of the debt amount and employ various "upgrade strategies" to maximize their profits [1][12]. Group 2: Methods and Tactics of Intermediaries - Intermediaries use tactics such as fabricating documents and inducing borrowers to use specific phrases when communicating with banks [5][6]. - They offer services that include "debt consolidation" and "loan assistance packages," claiming to help clients negotiate better terms with banks [7][8]. - Some intermediaries provide "one-stop services" that encompass everything from credit repair to securing new loans, often misleading clients about the effectiveness of their services [8][9]. Group 3: Legal and Regulatory Concerns - The methods employed by these intermediaries are often non-compliant with regulations, as they misrepresent the nature of credit repair and the legal processes involved [6][17]. - The People's Bank of China has emphasized that there is no concept of "credit repair," and all credit information must be reported accurately [6][17]. - Engaging with these intermediaries can expose borrowers to legal risks, including potential fraud and violations of personal information protection laws [17][18]. Group 4: Market Dynamics and Public Awareness - The rise of these gray and black market operations is attributed to information asymmetry, where borrowers lack understanding of the credit repair policy and feel pressured to rectify their credit status [9][19]. - There is a need for improved public awareness regarding legitimate credit repair processes and the risks associated with engaging with fraudulent intermediaries [19]. - Experts suggest a multi-faceted approach to combat these illegal operations, including better regulatory oversight, public education, and collaboration among financial institutions [19].

Core Viewpoint - The article highlights the emergence of illegal and fraudulent practices surrounding credit repair services, particularly in response to the new personal credit repair policy set to take effect in 2026, which has led to the exploitation of vulnerable borrowers by unscrupulous intermediaries [1][2][8]. Group 1: Credit Repair Policy and Its Exploitation - The personal credit repair policy will be implemented on January 1, 2026, allowing borrowers with overdue records from 2020 to 2025 to clear their credit if the overdue amount is under 10,000 yuan and settled by March 31, 2026 [2]. - Many borrowers are unable to meet the policy's criteria, leading to the rise of intermediaries claiming they can "break through the 10,000 yuan limit" and fully repair credit [2][4]. - These intermediaries often charge high fees ranging from 2% to 10% of the debt amount, using deceptive practices to lure borrowers into costly services [1][12]. Group 2: Methods and Operations of Intermediaries - Intermediaries employ various tactics, including exaggerating the policy's applicability, forging documents, and creating a sense of urgency among borrowers [2][4]. - They typically offer services such as "debt consolidation" and "credit repair," often misleading clients about the legality and effectiveness of their methods [6][7]. - Some intermediaries provide "one-stop services," claiming to assist clients in negotiating with banks to remove overdue records, despite these practices being non-compliant with regulations [6][7]. Group 3: Legal and Ethical Concerns - The practices of these intermediaries not only involve potential fraud but also pose risks of personal information leakage and legal repercussions for borrowers [1][8]. - The article emphasizes that credit records cannot be arbitrarily deleted, and the process of disputing credit information is strictly regulated [5][16]. - Many contracts from intermediaries contain vague terms and high penalties for breach, making it difficult for clients to seek recourse [11][13]. Group 4: Recommendations for Addressing the Issue - Experts suggest a multi-faceted approach to combat these gray and black market practices, including better public education on legitimate credit repair processes and stricter regulation of intermediaries [18]. - Financial institutions are encouraged to enhance internal controls and streamline legitimate dispute processes to reduce borrower costs [18]. - Social media platforms should improve content moderation to prevent the spread of misleading advertisements related to credit repair services [18].