Consequences of overdue consumer loan cases
Different consumer loan products have different interest calculation methods. Some consumer loan products are similar to credit cards and provide "interest-free period" services within a certain period. No interest will accrue on use, but interest will begin to accrue if the full payment is not made by the due date. Most consumer loan products do not have an "interest-free period" service, and interest will begin to accrue as soon as the payment is made. If you fail to repay after the due date, the repayment time will be prolonged, and the interest to be borne will escalate. Upgrading the credit report means that the loan applicant has an overdue record in the central bank's credit report, which is the so-called "credit stain". Such overdue records will have a negative impact on the applicant's future housing loans, car loans, and credit cards. In serious cases, the application for a credit card or loan will be directly rejected.
Legal basis:
"People's Republic of China and Civil Code"
Article 667 A loan contract means that the borrower borrows money from the lender , a contract to return the borrowed money and pay interest when due.
Article 668: A loan contract shall be in writing, unless otherwise agreed upon for a loan between natural persons. The content of a loan contract generally includes terms such as loan type, currency, purpose, amount, interest rate, term and repayment method.
What will happen if consumer finance is overdue?
What will happen if consumer finance is overdue? If consumer finance is always overdue, overdue loan records will be left on the credit report, which is not conducive to the borrower's future application for housing loans, car loans and other loans. Secondly, you will be contacted by the platform to urge you to repay, and penalty interest will be charged for the overdue period, which has a great impact. If the lender is malicious and defaults on repayment for a long time, the lending institution may still sue the lender and protect its own rights and interests through legal means.
Extended information:
Traditional consumer finance (CF) is a modern financial service method that provides consumer loans to consumers from all walks of life. Whether from the perspective of financial product innovation or expansion of domestic demand, consumer finance pilots are of positive significance.
Under my country's current macroeconomic situation, the timely introduction of relevant management measures is in line with the trends and needs of the objective economic situation. From the perspective of financial product innovation, personal credit business is an area that traditional banks cannot fully benefit from. The establishment of a professional personal consumption finance system can better serve individual residents.
Form of expression
Consumer finance companies - the so-called consumer finance companies refer to companies established in China that do not accept deposits from the public and are based on the principle of small amounts and decentralization to provide services to residents in China. A non-bank financial institution that provides loans to individuals for consumption purposes. The registration threshold for consumer finance companies is 300 million yuan or the equivalent in convertible currency, and it is a one-time paid-in monetary capital.
Consumer finance debts are overdue
Encountered collections: Immediate consumer finance loans do not have a grace period for repayment. Once overdue, staff will call or text messages to collect debts from the borrower. , which will affect the borrower’s normal life.
Increased loan costs: When a borrower's loan from Immediate Finance is overdue, penalty interest will be charged at 1.3-1.5 times the original loan interest rate. The loan costs will increase and the repayment pressure will increase.
The credit report has deteriorated: Immediate consumer finance loans require a credit report. Once the loan is overdue, a bad credit record will be left on the credit report. If the overdue time exceeds 90 days, the borrower's credit report will be affected. This is bad, it will have a great negative impact on future credit product applications, and you will be directly rejected.
Face the risk of being defrauded: If the borrower fails to repay the loan after it is overdue, has a bad repayment attitude, and is overdue for more than 3 months, Immediate Consumer Finance may file a lawsuit against the borrower. After winning the lawsuit, it will force The borrower is required to repay the loan, and if he fails to do so, he will become a defaulter and be subject to execution.
:
1. Consumer finance refers to the modern financial service method in which consumer finance companies provide consumer loans to consumers of all walks of life. It has the characteristics of small single credit limit, fast approval speed, and no need to Advantages include mortgage guarantee, flexible service methods, and short loan period.
2. If an individual uses cash when consuming, he may not need the services of a financial institution (except for receiving money), but if he uses a personal check or credit card to pay, then this is consumer finance behavior. Furthermore, if part of the funds used by consumers to purchase consumer goods are financed by financial institutions, that is, through consumer loans to expand their purchasing power, then consumer finance has the function of creating credit. In addition, financial institutions can also provide services for paying water and electricity bills and collecting payments for goods, allowing customers to pay their utility bills (such as tap water, electricity, telephone bills) and even the payment for goods at the branch nearest their home or workplace. Financial institutions do not charge handling fees, but they will generate income from retained funds, and consumers will improve their quality of life through the convenient services of financial institutions. This is a very typical consumer finance.
Consequences of owing a consumer loan from Bank of China
The specific consequences of overdue loans from Bank of China Consumer Finance are as follows:
1. Credit Reference Bank of China Consumer Finance not only has a consumer finance license The loan mouth is a loan mouth under the Bank of China. The measures for treating overdue people are similar to those of banks. Therefore, after the Bank of China consumer finance micro-loan becomes overdue, the user's bad record will be reported to the central bank for credit reporting. For people with stains on their credit report, it will be much more difficult than others to apply for mortgage loans, car loans, etc. in the future.
2. Incurring overdue fees BOC Consumer Finance Micro Loan is a loan that charges overdue fees on a daily basis. The charging standards are as follows: (1) The overdue amount is between 0-5,000 (inclusive) yuan, and the daily overdue interest is 5 yuan;
(2) The overdue amount is between 5,000-10,000 (inclusive) yuan , the daily overdue interest is 10 yuan;
(3) If the overdue amount is between 10,000-15,000 yuan (inclusive), the daily overdue interest is 15 yuan;
(4) The overdue amount is between 15,000 and 20,000 yuan (inclusive), and the daily overdue interest is 20 yuan.
3. The defendant goes to court. For farmers who have been overdue for a long time, Bank of China Consumer Finance Micro Loan will use legal means to solve the problem. The debtor will be taken to court by Bank of China Consumer Finance Micro Loan and is very likely to be included in the list of dishonest persons.
The consequences of overdue payment are serious. Users should avoid overdue payment or pay off the balance as soon as possible.
Extended information
According to reports, the personal credit situation reflected by the credit reporting system is mainly displayed through the personal credit report. The personal credit report is an individual's "economic ID card". It can display the personal credit status of citizens.
Credit information mainly comes from institutions that provide credit services, provident fund centers, personal pension insurance and other institutions. If the consumer fails to repay the loan on time, the credit report will faithfully display the overdue record. "There is no such thing as a 'blacklist' in the credit reporting system. It only objectively reflects the credit situation." The customer service staff of the credit reporting center pointed out the unprofessionalism and loopholes in this rumor.
Credit reports in more than 20 provinces can be checked online
Through verification, banks do not punish dishonesty caused by unintentional overdue payments with a single stick. A staff member of the credit card department of a joint-stock bank told reporters that banks report credit reports to the People's Bank of China on a cyclical basis. The current frequency is once a month. The bank has also set a grace period for borrowers. If the borrower repays the credit within three days after being overdue, If it is cleared, the bank may not report the overdue record and it will not be included in the credit report.
At present, the role of credit records is mainly used as a reference for banks to process loans and credit card approvals. In the future, it may also be used in corporate recruitment and qualification review and other occasions.
The Credit Reference Center only records the repayment of bank debts and compliance with contracts. At present, only overdue repayments of bank loans and credit card business will generate credit records, which are reported to the Credit Reference Center, as well as mobile phone arrears and water and electricity bills. Businesses such as overdue fees are not included in the credit reporting system.
It is reported that the current bad records of personal credit reports in the Credit Reference Center are graded from 1 to 6. Regardless of the amount, if the payment is not repaid within one month overdue, it is grade 1, and if it is overdue for six months, it is grade 1. Level 6, the higher the level, the more bad records there are.
Although the content of the above-mentioned messages forwarded in the circle of friends is not true, relevant people said that personal credit must be cherished regardless of whether it is true or false. Those who break their trust will definitely find it difficult to move forward. Bank financial management experts remind that personal credit records are residents’ credit identity cards. Banks pay special attention to this when conducting loan reviews. Citizens must pay attention to it and develop good habits.
Since overdue credit card repayments often affect credit reporting, Ma Daha, who usually has a bad memory, can activate functions such as text message notifications or bind debit cards for automatic monthly repayments to avoid accidental damage to the greatest extent.
As for credit status, individuals have the right to inquire at the local branch of the People's Bank of China. They have two opportunities to obtain their credit reports for free every year. After that, a service fee of 25 yuan will be charged each time.
Currently, the Central Bank’s Credit Information Center has also launched a pilot online inquiry. Currently, citizens in more than 20 provinces, municipalities and autonomous regions across the country can log in to its official website for free inquiry. If erroneous information is found, citizens can promptly apply to the credit reference center or the bank where the business occurred for correction.