The letter of understanding plays a great role in the procuratorate. For minor cases, if there is a letter of understanding, there is no need to impose a sentence.
If the criminal suspect and the victim reach an agreement on compensation and obtain the victim’s understanding, the judicial authority may give a lighter, reduced or exempted criminal punishment.
For cases in which a settlement agreement has been reached, the public security organs may make suggestions for leniency to the People's Procuratorate. The People's Procuratorate may make recommendations to the People's Court for leniency in punishment; if the crime is minor and does not require a penalty, it may decide not to prosecute. The people's court may impose lenient punishment on the defendant in accordance with the law.
Related cases:
Peng, female, was born in Zhouning County, Fujian Province in 1964, Han nationality, high school education, registered place of residence is Zhouning County, Fujian Province, temporarily living in Songjiang, Shanghai district. Legal representative of Shanghai Mouwang Materials Co., Ltd. The company mainly engages in the wholesale and retail business of metal materials, construction materials, and steel products, and supplies various raw materials to construction companies in Shanghai and surrounding areas.
In March 2010, Peng saw an advertisement for Agricultural Bank of China's credit card while browsing the website. Because sometimes business needs it, I submitted the application. After passing the approval the next month, the Shanghai Songjiang Branch of Agricultural Bank of China Co., Ltd. (hereinafter referred to as the Shanghai Songjiang Branch of Agricultural Bank of China) will issue a card with a credit limit of 120,000. Later, as the business became more and more difficult, Peng began to use the POS machine under his company's name to cash out his credit card and invest in the business. After the overdraft, as of 2014, Peng still owed RMB 120,000 in credit principal, RMB 50,000 in universal funds, RMB 20,097.58 in interest and installment fees, totaling RMB 170,097.58.
After receiving a call from the police station, Peng borrowed 80,000 yuan from his family, collected about 100,000 yuan in arrears from downstream buyers, and transferred all the principal and interest owed to the Agricultural Bank of China credit card in one go. pay off. Later, he went to the police station to surrender and truthfully confessed his crime. At the same time, the Agricultural Bank of China issued a settlement certificate to Peng; at Peng's request, the Agricultural Bank of China issued a letter of understanding and handed it to Peng. The verdict was that the defendant Peng was guilty of credit card fraud and was sentenced to five months' detention, suspended for five months, and fined RMB 20,000. The appellant (defendant in the original trial) Peng committed credit card fraud and was exempted from criminal punishment.