China: Regulators Crack Down on "Travel Cards" and Hidden Fees

While India deals with extortion, China is battling disguised lending. With the new "Individual Loan Regulations" set to take effect on August 1, 2026, Chinese regulators are moving to stamp out "cut-interest loans" (similar to predatory payday loans) that hide behind e-commerce platforms .

Investigations by Southern Metropolis Daily have exposed platforms like "Jinlizhi" and "Yuexiangou," which are disguising high-interest loans as "travel cards" or "shopping vouchers." In one case, a user purchased a 3,408 yuan "travel card" but only received 2,500 yuan in value, losing nearly 1,000 yuan to a hidden "service fee" before the loan even began .

This represents a cat-and-mouse game between regulators and fintech firms. By rebranding interest as "product markups" or "membership fees," platforms were able to evade usury laws. The upcoming regulations require platforms to show a "pop-up" window displaying the true comprehensive financing cost before a user can sign a contract .

Furthermore, China’s National Financial Regulatory Administration recently summoned five major lending platforms—including Fenqile, Qifu, Niwodai, Yixianghua, and Xinyongfei—to a closed-door meeting regarding deceptive marketing and unclear fee disclosures . The message is clear: hidden fees will no longer be tolerated.