As a common means of payment, credit cards have become a trend for many consumers to spend in advance, and many young people use credit cards to spend in advance, and if the future income does not meet expectations, borrowers often fall into legal disputes due to their inability to repay arrears and interest.
Netizen consultation:
What are the consequences of overdue credit card repayment?
Lawyer answers:
1. If the credit card is overdue, you need to pay high penalty interest, liquidated damages, and late fees. Interest is accrued on credit card cash installments as well as credit card borrowings. Once the loan is not repaid, it will inevitably incur a high penalty interest, and the penalty interest generated by the credit card loan is higher than the credit card interest, and at the same time, it will face the risk of being collected.
2. There will be a bad credit record when the credit card repayment is overdue, which will affect personal credit and have a greater impact on future financial lending affairs and credit card applications.
3. If the bank fails to repay the loan when it expires, the bank will file a lawsuit with the court in order to protect its own rights and interests, and the litigation costs arising from the overdue repayment of the credit card shall be borne by the cardholder.
4. Overdue credit cards can lead to jail time. Those who maliciously overdraft their credit cards and owe more than 50,000 yuan will be held criminally liable.
Lawyer adds:
Malicious overdraft of credit card refers to the act of the cardholder exceeding the prescribed limit or the specified period of overdraft for the purpose of illegal possession, and failing to return it for more than 3 months after being collected twice by the card-issuing bank. Whether the purpose is illegal possession shall be made based on circumstances such as the cardholder's credit history, ability and willingness to repay, the status of the credit card applied for and overdrawn, the use of the overdrawn funds, the performance after the overdraft, and the reasons for failing to repay in accordance with provisions. The purpose of illegal possession must not be determined solely on the basis of the fact that the cardholder has failed to repay the loan in accordance with regulations.
Where the amount is relatively large, a sentence of up to five years imprisonment or short-term detention is to be given, and a concurrent fine of between 20,000 and 200,000 RMB is to be givenwhere the amount is huge or there are other serious circumstances, a sentence of between 5 and 10 years imprisonment and a concurrent fine of between 50,000 and 500,000 RMB is to be given;where the amount is especially huge or there are other especially serious circumstances, a sentence of 10 or more years imprisonment or indefinite imprisonment is to be given, and a concurrent fine of between 50,000 and 500,000 RMB or confiscation of property is to be given.
Legal basis] Civil Code of the People's Republic of China
Article 577:Where one of the parties fails to perform its contractual obligations or its performance does not conform to the agreement, it shall bear liability for breach of contract such as continuing to perform, taking remedial measures, or compensating for losses.
Article 578:Where one of the parties expressly states or shows by its own conduct that it will not perform its contractual obligations, the other party may request that it bear liability for breach of contract before the expiration of the performance period.
Lawyer Wang Aixia is profiled
Lawyer Wang Aixia, female, born in 1978, is the founder and director of Guangdong Yueyuan Law Firm. He has been a full-time lawyer for more than 10 years, specializing in financing and borrowing, civil and commercial contract disputes, marriage and inheritance, and disposal of non-performing assets. Adhering to the practice philosophy: to be a thoughtful lawyer and make the rule of law a belief.