How to calculate credit card liquidated damages

The formula for calculating credit card liquidated damages: Repayment liquidated damages = (minimum payment amount – amount paid as of the due payment date) × 5 %. Under normal circumstances, credit card default penalties are charged at 5% of the unpaid portion of the minimum repayment amount. Each bank has different standards for charging liquidated damages. Cardholders should refer to the card-issuing bank's standards for charging liquidated damages.

Credit card repayment penalty refers to when the cardholder fails to repay the credit card by the due date or the repayment amount is less than the minimum repayment amount. The minimum credit card default penalty is 1 US dollar or 1 euro or 5 yuan (the currency is the same as the corresponding minimum repayment amount, calculated on a monthly basis), or charged according to the agreed price if otherwise agreed in the agreement.

For example: The total repayment amount due to the cardholder's bill settlement on July 7 is 2,000 yuan, the minimum repayment amount is 200 yuan, and the due date of repayment is July 27. The cardholder paid back the credit card balance of 100 yuan on July 27. Since the cardholder failed to pay off the minimum payment amount before the due payment date, the bank will charge a penalty of 5 yuan in the August bill.

Cardholders can log in to personal online banking and mobile banking to check the specific credit card due date. Repaying the minimum payment can maintain a good credit history of the cardholder.

There is no additional repayment due date for credit card installment business, and the cardholder can repay the amount normally according to the credit card bill.

How to refund credit card liquidated damages

1. First call the bank customer service and request a refund of liquidated damages, but only if you have paid off the debt and successfully applied to cancel the credit card.

2. Generally, bank staff will say that they cannot handle it directly and require cardholders to contact the local branch for negotiation.

3. When applying for a refund of liquidated damages, the cardholder must have a tough attitude. Under normal circumstances, the customer service will agree.

The prerequisite for bank interest reduction and exemption is that the cardholder has a "strong" willingness to repay, but due to objective reasons, is unable to repay in full and on time! Interest reduction and exemption matters can only be handled after the cardholder's application, the bank's approval, and leadership review.

Liquidated damages refer to a certain amount of money paid by one party to a contract for breach of contract in accordance with the provisions of the contract when the party fails to perform or improperly performs the contract. Liquidated damages are generally divided into punitive liquidated damages and compensatory liquidated damages, both of which fall within the scope of security rights. As for the amount limit, if the parties agree on liquidated damages, the liquidated damages shall be paid as agreed. However, if the losses are too high and the losses need to be appropriately reduced or the losses are too low and the losses need to be increased appropriately, the liquidated damages included in the scope of the guarantee shall be the final amount of the people's or arbitration institution's final amount. The determined amount shall prevail. The subject matter of liquidated damages is usually money, but the parties may also agree that the subject matter of liquidated damages is property other than money.

Definition:

Liquidated damages refer to a certain amount of money paid by one party to a contract for breach of contract in accordance with the contract when one party fails to perform or improperly performs the contract. Liquidated damages are generally divided into punitive liquidated damages and compensatory liquidated damages, both of which fall within the scope of security rights. As for the amount limit, if the parties agree on liquidated damages, the liquidated damages shall be paid as agreed. However, if the losses are too high and the losses need to be appropriately reduced or the losses are too low and the losses need to be increased appropriately, the liquidated damages included in the scope of the guarantee shall be the final amount of the people's or arbitration institution's final amount. The determined amount shall prevail. The subject matter of liquidated damages is usually money, but the parties may also agree that the subject matter of liquidated damages is property other than money.

How to calculate the penalty for repayment of Bank of China credit card?

Repayment penalty means that the cardholder fails to repay the minimum repayment amount before the due repayment date (inclusive). In addition to the loan interest payable, the bank will pay the minimum repayment amount. A penalty of 5% of the repayment amount will be charged. The specific calculation method of repayment liquidated damages is: repayment liquidated damages = (minimum repayment amount - repaid amount) × 5%.

If the minimum repayment amount is less than 10 yuan (inclusive), no liquidated damages will be charged; after 6 periods of overdue payment, no penalty will be charged; the amount collected will not exceed the principal.

The above content is for your reference, please refer to actual business regulations.

How to deal with credit card default penalties

If your credit card is overdue due to unemployment or illness and you incur penalty fees, you can proactively contact the bank to explain the overdue situation and show that you are not maliciously defaulting. , and then apply for deferred repayment. Generally, the liquidated damages can be canceled after the bank agrees.

Generally, when your credit card is overdue, bank staff will tell you that there is a fee for liquidated damages. If you fail to fulfill your obligation to inform, you have the right to apply for cancellation of liquidated damages.

Overdue credit card loans will not only result in overdue interest, but will also continue to upload overdue loan records to the central bank’s personal credit reporting system, affecting personal credit reporting. Once a person has a bad credit record, it may affect all aspects of daily life in the future. The most direct one is that loan applications will basically not be approved. Therefore, when using a credit card, you must develop good loan repayment habits and repay the loan in full and on time. The above is related to what will happen if your credit card is overdue.

The impact of overdue payment:

1. If the payment is not made for more than 7 days, the bank will include the loan in "dunning" and "delayed fees". Users will also have to pay late tax fees or overdue interest;

2. If the payment has not been made for more than 3 months, it will be very serious. The borrower will be marked with a bad credit record on the Joint Credit Information Center, also known as "credit blacklist", and may be kept for more than three years;

3. Just enter If you are on the credit blacklist, your application for housing loans and car loans will be affected. Overdue interest is only a financial loss, while a poor credit record is a damage to inventory, and its impact is irreparable to money.

Credit cards, also called credit cards, are credit certificates issued by commercial banks or credit card companies to consumers with qualified credit. It takes the form of a card with the issuing bank's name, validity period, number, cardholder's name and other contents printed on the front, and a magnetic stripe and signature strip on the back. Consumers holding credit cards can shop or consume at specially designated commercial service departments, and then the bank will settle the accounts with merchants and cardholders. Cardholders can overdraft within the prescribed limit.

Credit cards stipulated in the relevant laws of our country ("Interpretation of the Standing Committee of the National People's Congress on Relevant Credit Card Regulations") refer to credit cards issued by commercial banks or other financial institutions with the functions of consumption payment, credit loans, transfer settlement , cash deposit and withdrawal and other full or partial functions of the electronic payment card. On December 1, 2017, the "English Translation and Writing Standards in the Public Service Field" was officially implemented, stipulating that the standard English name of credit cards is CreditCard.

Credit card consumption is a non-cash transaction payment method. There is no need to pay cash when consumption, and repayment will be made on the billing date (BillingDate).

Credit cards are divided into credit cards and quasi-credit cards. Credit cards refer to credit cards in which the cardholder has a certain credit limit and can consume within the credit limit and then repay; quasi-credit card It refers to a quasi-credit card in which the cardholder deposits a certain amount of reserve fund as required. When the reserve account balance is insufficient to pay, the cardholder can overdraw within the prescribed credit limit. The so-called credit card generally refers to a credit card only.

Starting from January 1, 2021, the credit card overdraft interest rate will be determined independently by the card issuer and the cardholder through independent negotiation, and the upper and lower limit management of credit card overdraft interest rates will be cancelled. The daily interest rate is 0.7 times 5/10,000).

On May 25, 2021, the Supreme People’s Court issued and implemented the “Regulations of the Supreme People’s Court on Several Issues Concerning the Trial of Bank Card Civil Cases.”

This ends the introduction on how to repay the default penalty on a credit card and how to repay the default penalty on a credit card. I wonder if you found the information you need?