When a credit card is overdue, the bank has the right to freeze the credit card and debit card of this bank, but it does not have the right to freeze the user's bank card in other banks. If a user is overdue for more than three months or fails to repay more than two bank reminders, the bank will freeze the card and list the user as a prohibited customer (blacklist). At the same time, banks also have the right to sue for credit card fraud and malicious overdrafts, and enforce them through the courts. If the user refuses to repay, the court will impose a sentence based on the crime of credit card fraud in Article 196 of the Criminal Law.
According to the provisions of Article 21 of the Freezing Property Law, when the court seals up, detains or freezes the property of the person subject to execution, it shall ensure that the frozen amount is sufficient to pay off the creditor's rights and execution expenses determined in the legal document, and shall not exceed This amount is frozen. Freezing the defendant's bank card refers to a coercive measure taken by the court against the defendant's deposits in banks, credit unions and other financial institutions, prohibiting the defendant from withdrawing or transferring funds. The court needs to serve a civil ruling to the bank to assist in the execution of the notice. After the bank receives it, it is not allowed to pay or transfer funds to the account of the frozen depositor, otherwise it will be dealt with by the court.
The maximum period for freezing deposits is six months. If the freeze needs to continue, the court should apply for an extension of the freeze with banks, credit unions, etc. before the freeze expires. If extension procedures are not completed within the time limit, the freeze will be automatically lifted.
What are the other consequences of an overdue credit card?
When a credit card is overdue, users will face a series of consequences. First, users need to pay liquidated damages, usually the minimum repayment amount plus 5% of the unpaid amount. Secondly, overdue debt will accrue high interest, and the interest is calculated on a compound interest basis, which means that the more debt is owed during the overdue period, the higher the interest will be. In addition, overdue payments will leave a stain on the user's credit record. In the next two years, the user will be unable to handle financial needs such as house purchases and loans. These consequences will cause certain troubles to users' financial status and life.