The Hong Kong Monetary Authority (HKMA) plans to require banks to offer at least a 7-day cooling-off period for unsecured consumer credit products, which means customers can cancel loans at any time during the cooling-off period without incurring any fees, according to Sing Tao Daily. This measure is expected to be implemented by the end of June next year.

It is understood that the HKMA aims to minimize the impact of impulsive and excessive borrowing by providing individual customers with a reasonable cooling-off period to assess their financial responsibilities and repayment capabilities.

An HKMA spokesperson stated that it is now an appropriate time to offer a cooling-off period to individual customers in order to promote responsible lending and reduce the risk of impulsive and excessive borrowing among bank customers. The HKMA had previously consulted the industry on the relevant proposals, and will implement the arrangements as soon as possible.

Sources: AASTOCKS