Third Wave of Leasing Companies to Be Regulated: FSC Announces 12 Firms to Apply Financial Consumer Protection Act from September 15

The Financial Supervisory Commission (FSC) announced today (30) the third phase of its regulatory expansion, designating 12 financing leasing companies—including CT Leasing and ORIX Taiwan—for inclusion under the Financial Consumer Protection Act (FCPA), effective September 15, 2026. With the first two phases, a total of 38 leasing companies will now be fully regulated. Lin Chih-hsien, Director of the Legal Affairs Division, stated that disputes such as 'opaque interest rates' have significantly decreased since regulation began, with over 90% of the 136 complaints filed in the first half of 2026 properly resolved. The FSC will continue enhancing consumer relief and protection mechanisms.

To strengthen the rights protection of individuals engaging in accounts receivable purchasing, installment sales, or other business with financing characteristics, the FSC has planned a three-phase approach to gradually bring members of the Leasing Association under the FCPA.

The first phase included 13 financing leasing companies under listed groups such as Chung Tai, Yu Ming, Ho Wen, and Jih Sun Taishun, effective September 15, 2025. The second phase brought in 13 leasing firms invested in by financial institutions, effective March 15, 2026.

The third phase will include CT Leasing, ORIX Taiwan, Far Eastern International Leasing, Mercedes-Benz Financial Taiwan, Wantai Leasing, Far Eastern International Finance, Far Eastern International Leasing, HSBC Auto, HSBC Hsieh Hsin Leasing, Scania Finance, Chang Hung International Enterprise, and Taiwan Fu Rong Comprehensive Leasing—12 companies in total—effective September 15, 2026.

Lin Chih-hsien stated that upon completion of the three-phase plan, a total of 38 leasing companies will be fully integrated into the FCPA framework, marking a significant milestone for the industry. For the fourth phase, the FSC will encourage other firms engaged in consumer financing to voluntarily join the Leasing Association and accept regulation. To facilitate public access, the full list of regulated firms has been published on the FSC and the Financial Consumer Dispute Resolution Center’s official websites.

Local consumer protection agencies are also actively responding. Taoyuan City Government revised and promulgated the 'Taoyuan City Consumer Protection Self-Government Ordinance' on March 24, 2026, adding Article 6-2, which requires business operators to prioritize loan institutions or third-party debt assignees that are subject to the FCPA, demonstrating the combined effectiveness of central and local consumer protection efforts.

On conduct standards, the FSC has established clear guidelines, including: disclosing annual interest rates and Annual Percentage Rates (APR) for fees; ensuring compliant advertising and solicitation; implementing Know Your Customer (KYC) procedures; ensuring loan amounts do not exceed the value of the collateral; prohibiting improper debt collection; and banning consumers from signing blank promissory notes.

Regarding complaint and dispute resolution cases, Lin noted that the Dispute Resolution Center received 136 complaints against leasing companies in the first half of 2026, with 125 properly communicated and resolved by the firms. Eight cases were formally accepted for review, six of which were pre-regulation legacy cases or already settled, while the remaining two are being actively handled by the firms.

From September 15, 2025, to June 30, 2026, a total of 163 complaints were filed, with 144 properly resolved. Nine cases entered the formal review stage.

Analysis of the Dispute Resolution Center’s data shows that current consumer disputes in the leasing sector are primarily concentrated in 'contract cancellation disputes' and 'disputes arising from product defects.' Previously common issues such as 'opaque interest rates' and 'over-financing' have significantly declined, indicating that the regulatory framework is already showing initial success.