Credit card default penalty refers to the default amount that the cardholder has to pay for the unpaid portion of the minimum repayment amount when the actual repayment amount on the credit card due date is lower than the minimum repayment amount. .

The calculation methods of each bank are as follows:

1. China Construction Bank: 5 of the unpaid portion of the minimum repayment, the minimum is 5 yuan or 1 US dollar or 1 euro, the currency is the same The corresponding minimum repayments are the same.

2. Agricultural Bank of China: The minimum repayment amount is 5% of the unpaid portion, with a minimum of 1 yuan/1 US dollar/1 euro/1 Australian dollar/1 pound/10 yen.

3. Industrial and Commercial Bank of China: 5% of the unpaid portion of the minimum repayment amount, with a maximum of 500 yuan or 500 Hong Kong dollars or 500 Macau patacas or 100 US dollars or 100 euros per installment.

Extended information

Guarantee theory

One view is that the main function of liquidated damages is to guarantee the performance of the contract. It is believed that it "is the main form of contract guarantee among current socialist organizations. An economic contract between socialist organizations is incomplete without the provisions of liquidated damages." Therefore, it is a form of guarantee (guarantee theory).

Liability Theory

The second view is that liquidated damages are the liability for breach of contract that the debtor should bear if he fails to perform his debts. Due to the qualitative difference between liquidated damages and the guarantee methods in traditional civil law, "liquidated damages are not a guarantee for debts, and legislation and legal theory should not require liquidated damages to play a guarantee role for debts" (Liability Theory).

The compromise theory

The third view is that liquidated damages are both a form of guarantee and a form of liability for breach of contract (the compromise theory).

There are more and more people holding the third view. In fact, these three views are just a dispute between the second view and the third view, because no one now thinks that liquidated damages are a pure guarantee method. Considering it as a pure guarantee method is inconsistent with the application of liquidated damages in various countries. consistent. Therefore, we only analyze and compare the second view and the third view here.

Reference sources

Baidu Encyclopedia-Liquidated Damages