Loan Industry Law Advocacy Group Urges Government to Quickly Release Official Draft to Combat Fraud

Central News Agency Report

(CNA reporter Wang Yang-yu, Taipei, June 16) Groups including the Loan Industry Law Promotion Alliance today stated that fraud syndicates are increasingly colluding with loan or agency service providers, leading to a growing number of citizens falling victim to scams. They emphasized that without a dedicated law, the serious fraud problem cannot be resolved, and called on the Financial Supervisory Commission (FSC) to swiftly release an official draft version of the Loan Industry Act.

The press conference was held at the Legislative Yuan and attended by Lin Yung-sung, convener of the Loan Industry Law Promotion Alliance; Sun Yi-hsin, secretary-general of the Taiwan General Federation of Social Welfare; representatives from the Credit Card Debtors’ Self-Help Association; and the Taipei Bar Association’s Debt Relief Committee.

The Alliance noted that while the FSC has already brought 26 loan companies under supervision and applied the Financial Consumer Protection Act, it has not addressed the issue of loan or agency providers participating in fraud. They questioned whether this approach can truly resolve the chaos in the loan company sector. The Alliance stated that on October 23, 2025 (Minguo Year 114), they met with the FSC Chairperson to explain the worsening situation involving loan providers and expressed their hope for the prompt release of an official draft.

The Alliance highlighted that cases are increasingly emerging where fraud groups collude with loan or agency providers to introduce individuals to loan companies, leading them to borrow money and hand it over to money mules, resulting in victimization. Without a dedicated law, they warned, the severe fraud problem cannot be solved. The Alliance expressed their desire to meet with the Premier and urged the FSC to swiftly release an official draft version of the Loan Industry Act.

Mr. Lin, a debtor who attended the press conference, expressed his hope that the government will quickly promote the Loan Industry Act to regulate service providers, restrict unreasonable fees and advertisements, and prevent those in need from falling into debt traps or becoming fraud victims. (Edited by Wan Shu-chang) 1150616