What will happen if you owe money on a credit card?

What will happen if you owe money on a credit card? Basically everyone has a credit card. With the development of the economy, credit cards have entered everyone’s life. For personal wallets, this consumption habit of spending first and paying back later has been accepted by people. Let’s take a look at what will happen if you owe money on a credit card and related information. What will happen if you owe money on a credit card? 1

The consequences of not paying back the credit card debt:

1. The debtor should pay additional overdue interest and liquidated damages.

2. The debtor’s personal credit report may have negative records.

3. It may be enforced after being sued by the court.

Legal basis

Article 241 of the Civil Procedure Law of the People’s Republic of China

Person subject to execution If the party fails to perform the obligations specified in the legal document in accordance with the execution notice, it shall report the current property situation and the property situation one year before the date of receipt of the execution notice. If the person subject to execution refuses to report or makes a false report, the people's court may fine or detain the person subject to execution or his legal agent, the principal person in charge of the relevant unit or the directly responsible person according to the seriousness of the case.

Article 242 of the Civil Procedure Law of the People's Republic of China

If the person subject to execution fails to perform the obligations specified in the legal document in accordance with the execution notice, the people's court has the right to file a lawsuit against the person subject to execution. Relevant units inquire about the deposits, bonds, stocks, fund shares and other property status of the person subject to execution. The People's Court has the power to seize, freeze, transfer, and change the value of the property of the person subject to execution based on different circumstances. The property inquired, seized, frozen, transferred, and valuated by the People's Court shall not exceed the scope of the obligations that the person subject to execution shall perform. What will happen if you owe money on a credit card? 2

1. If the credit card is not repaid for a long time, the bank will sue you. If the principal is overdrafted by more than 10,000 and the bank collects it, but still does not repay, you may be liable. shall be subject to criminal punishment. The legal basis is as follows:

According to the "Interpretation of the Supreme People's Court and the Supreme People's Procuratorate on Several Issues Concerning the Specific Application of Laws in Handling Criminal Cases of Obstructing Credit Card Management" (Fa Interpretation [2009] No. 19):

Article 6 If a cardholder exceeds the prescribed limit or overdrafts within the prescribed period for the purpose of illegal possession, and fails to return the card for more than 3 months after being called upon twice by the issuing bank, it shall be deemed to be a card holder as prescribed in Article 196 "Malicious overdraft". Malicious overdraft, the amount is more than 10,000 yuan but less than 100,000 yuan.

It should be determined as a "relatively large amount" as stipulated in Article 196 of the Criminal Law; if the amount is more than 100,000 yuan but less than 1 million yuan, it should be determined as a "large amount" as stipulated in Article 196 of the Criminal Law. The amount is "huge"; if the amount is more than 1 million yuan, it shall be deemed as the "especially huge amount" stipulated in Article 196 of the Criminal Law.

The amount of malicious overdraft refers to the amount that the cardholder refuses to return or the amount that has not yet been returned under the conditions specified in the first paragraph. Excludes compound interest, late fees, handling fees and other fees charged by the card issuing bank

2. Article 196 of the "Criminal Law": Under one of the following circumstances, credit card fraud activities are carried out, the amount If the amount is huge or there are other serious circumstances, the sentence shall be not less than five years but not more than 10 years, and also to a fine of not less than 20,000 yuan but not more than 200,000 yuan. If the amount is particularly huge or there are other particularly serious circumstances, the sentence shall be not less than 10 years in prison or, in addition, a fine of not less than 50,000 yuan but not more than 500,000 yuan, or property confiscation:

(1) Use Counterfeit credit cards, or use credit cards fraudulently obtained with false identification;

(2) Use invalid credit cards;

(3) Use others’ credit cards fraudulently;

(4) Malicious overdraft.

What will happen if you owe money on a credit card? 3

1. What will happen if you owe money on a credit card?

If you owe money on a credit card but cannot pay it off, there will be the following consequences:

1. High interest and late payment fees

Cardholders who do not repay their credit card will no longer enjoy the credit card interest-free period, and will be charged an interest of 0.05% per day starting from the day of consumption, on a monthly basis. Calculate compound interest. A debt of tens of thousands of yuan will accrue thousands of yuan in interest within a few days. The longer the period, the higher the interest.

If the credit card interest-free period is exceeded and the credit card is not repaid in time, the bank will charge the credit card holder a late payment fee, the proportion of which is 5% of the unpaid portion of the minimum repayment amount. After a certain period of time, the bank will charge the card holder Charge higher penalties.

2. Personal credit stains

As long as you have applied for a credit card or a loan, you will know how important your personal credit record is. Once your credit record is stained, you will basically know how important it is. It will be difficult to apply for a credit card. This is not the most troublesome thing. The worst thing is that if you want to buy a house in the future and your credit is stained, the loan amount of the mortgage will be smaller than others, and the interest rate will be higher than others. If the application is seriously overdue, Even if you want to pay more interest rates, the bank will not lend to you.

3. The credit card is suspended

If the credit card is not repaid, the bank will take back the revolving credit granted to the cardholder, and the credit card will be suspended. For repeated repayment arrears or long-term arrears of large amounts, the bank will consider the cardholder to have a higher risk of repayment, and will stop using the credit card and recover the arrears from the cardholder. This will cause the bank to encounter problems. If the credit card debt is still not repaid after collection, the bank may apply to auction the cardholder's other fixed assets.

4. Malicious debts will be punished

Credit card debts that have not been repaid for more than three months will be regarded as malicious overdrafts, and the bank can Initiate judicial proceedings. my country's criminal law stipulates that if a credit card overdraft exceeds 50,000 yuan, the debt is in arrears for more than 3 months, and the bank refuses to repay after three or more reminders, the judicial authorities will take corresponding measures (criminal detention for less than 50,000 yuan).

2. Amount requirements for suspected credit card fraud crimes

According to the "Decision on Amending the Interpretation of Several Issues Concerning the Specific Application of Laws in the Handling of Criminal Cases Obstructing the Management of Credit Cards", malicious If the amount of overdraft is more than 50,000 yuan but less than 5 million yuan, it is deemed to be a "large amount"; if the amount is more than 500,000 yuan but less than 5 million yuan, it is deemed to be a "huge amount"; if the amount is more than 5 million yuan, it is deemed to be a "huge amount". , deemed to be “an extremely huge amount”.

Nowadays, it is relatively common for people to use credit cards, but this way of premature consumption has also caused trouble for some people. In the process of using credit cards, some people fail to comply with the regulations of the country and the card-issuing bank, and consume excessively beyond their financial capabilities, causing life difficulties, and the credit card debt they owe cannot be repaid as agreed. In this case, what is actually required There are still many consequences, and if it is serious, it may even be deemed to constitute a criminal offense and be held criminally responsible according to law.

In contemporary society, almost everyone has a credit card, because their functions are very convenient. When we make purchases, we can use credit cards to swipe purchases, but credit cards are not It also has the function of overdraft in advance, which will lead to some people's estimation of themselves being inaccurate enough, so they cannot pay the payment, and they will face many serious consequences.