With significant capital injection into the car rental industry, the diversified competitive landscape of car financing has initially taken shape. Concurrently, there has been an increase in complaints and disputes related to car rentals. In response, the Shanghai Car Rental Industry Association issued the "Self-discipline Convention for Car Financing Leasing Business" (hereinafter referred to as the "Convention") on May 24th.
The "Self-discipline Covenant" mandates that all member units of the association operate in accordance with the law and regulations, and must not engage in non-leasing financing activities such as credit loans and mortgage loans. It strictly prohibits the use of misleading language such as "loan" or "loan" in financing lease contracts, promotional materials, and APP platforms. Further strengthening customer access management, financing lease services must not be offered to groups lacking necessary repayment capacity, such as students. Adhere to the lawful and fair conduct of business, and ensure that legally binding documents like financing lease contracts and mortgage contracts do not contain unfair terms. Uphold commercial ethics, and refrain from using any means to interfere or influence the competitive order of the car financing lease industry. Charge fees reasonably, legally, and in compliance with regulations, ensuring that the amount does not violate laws, regulations, rules, judicial interpretations, or supervisory standards.
The "Self-discipline Covenant" also emphasizes that after a client defaults, member units of the association should legally and compliantly collect debts, prohibiting any form of abuse, threats, impersonating legal personnel to intimidate clients, or fabricating false information to damage their reputation. Personal client information obtained during business operations must be strictly confidential, and it is strictly prohibited to intentionally display, disclose, or trade such information. Reasonable reminders should be issued after a client defaults, and all measures taken should be fully supported by legal and contractual grounds, effectively protecting the legitimate rights and interests of clients. No violent methods or actions that harm the personal safety of clients or public safety should be employed, and exorbitant handling fees should not be charged.
The convention is implemented and supervised by the Shanghai Leasing Industry Association. In case member units violate the convention and cause negative impacts, upon verification, they will be subject to internal notifications, membership revocation, or notifications to relevant departments or industry regulatory authorities, depending on the severity of the situation.
The Shanghai Leasing Industry Association was established in April 1999, as a non-profit legal entity. It is formed voluntarily by peer enterprises in the local leasing industry and other relevant economic organizations, in accordance with regulations such as the "Administrative Measures for the Registration of Social Organizations" and the "Provisions for Promoting the Development of Industry Associations in Shanghai." The association operates industry services and self-regulatory management.
