How Did the Loan Get Mixed with Insurance? Multiple Borrowers Were Completely Unaware

How AI Credit Guarantee Insurance Transforms from a Credit Enhancement Tool into a Charging Channel

Southern Finance and Economics Media Reporter Lin Hanyi, Intern Xu Ruoxuan

You borrowed 63,000 yuan but may end up paying nearly 20,000 yuan for an insurance you’ve never seen. This is not a joke; it’s a real situation.

Recently, some consumers reported that while checking their bills, they found multiple loans from online lending platforms had their premiums deducted simultaneously. The consumers claimed they had not signed any insurance documents nor received any policy or fee notices.

Such situations are not uncommon. On the Black Cat Complaint Platform, over 7,000 complaints related to “loan bundling insurance” have been filed, involving banks, insurance companies, consumer finance companies, and other institutions.

Most of these bundled insurances are credit guarantee insurance, originally intended to provide credit support to help borrowers obtain loans. However, in some business practices, this mechanism has been embedded into the loan process, with consumers being automatically insured without their knowledge or defaulting to acceptance, and the premiums are directly deducted by the platform, increasing the overall financing costs.

Industry insiders point out that such operations pose risks of infringing on consumers’ right to information and autonomous choice. Some institutions use insurance as a disguised way to charge fees, deviating from the original purpose of inclusive finance.

An insurance organization warns that legitimate financial institutions will not forcefully bundle insurance sales. Any online lending platform that requires consumers to purchase insurance under the guise of “mandatory insurance for disbursement” or “premium deduction for interest” is illegal. Consumers must refuse such practices. When applying for online loans, carefully read the contract details, especially the interest rates, fees, and insurance terms. Stay away from platforms with vague or hidden charges, and do not sign blindly.