New rules regarding the management of users’ deposits in mobile rental business

Mobility services usually request a deposit, which works as a guarantee for lease return with a provision of financial support for a company’s sustainability. However, the frustrating deposit returning case suffered by struggling ofo indicates the chaos of capital misuse which has long been criticized as a legal grey area. The recently released draft rule by the Ministry of Transport is actually acting on addressing the problem, in which it demands bank accounts to be provided by customers for a specific use of their deposits management, while the companies are tasked with safeguarding the funds. Another bike rental company, Mobike, welcomes the upcoming regulation with welcome, and believes “it will improve consumer right protections and help control public risk”.