Civil Code interest rate cut: public fears being unable to borrow money

Tseng Ming-chung, chairman of the Financial Supervisory Commission, said that if interest rates are lowered, some members of the public may turn to underground lending. Japan indeed has relevant experience with this.

The Card Debt Victim Self-Help Association yesterday went to the Financial Supervisory Commission to petition, demanding that the FSC agree to amend Article 205 of the Civil Code, lowering the interest rate ceiling from 20% to 16%. Tseng Ming-chung personally communicated with the self-help association.

Tseng said he would fully explain to the public why the issue of amending the Civil Code must be seriously considered. This is because adjusting interest rates will cause some members of the public to have problems borrowing from banks and turn to underground lending. Japan has relevant experience with this, so it must be considered prudently.

Tseng said the FSC is very sincere about handling card debt, and does not allow banks to sell non-performing debts to outside asset management companies. Now, both credit card revolving credit balances and cash card balances have greatly decreased.

Tseng stressed that if there are problems such as gangsters pursuing debts or violent debt collection related to banks' card debt, the banks will certainly be severely punished.