Can credit card default penalties be reduced or reduced? Credit card default penalties are penalties imposed by banks for cardholders who fail to repay the minimum payment amount on the final payment date. Because the borrower fails to fulfill its repayment obligations in accordance with the credit card loan contract, it must bear liability for breach of contract. This requires the payment of liquidated damages to compensate the bank for its losses. As for whether liquidated damages can be reduced or reduced, our country's laws do not clearly stipulate. However, according to Article 114 of the "Contract Law of the People's Republic of China", the parties may agree on the calculation method for the amount of compensation for losses arising from breach of contract, that is, It is said that cardholders can negotiate with the bank, so there is a chance for reduction or exemption.
Especially in the following two situations, reductions and exemptions can be negotiated: 2. If the cardholder's credit card is overdue due to unemployment, illness, etc., then after the expiration, he should take the initiative to contact the bank's credit card center to explain his financial situation. Show that you do not owe money maliciously, and then negotiate with the bank for repayment. The bank will consider it as appropriate and can reduce or reduce the liquidated damages incurred after agreeing to negotiate for repayment. 2. The “excessive loss caused” as stipulated in Article 114, Paragraph 2 of the Contract Law, can be reduced or reduced through negotiation. Generally, if the liquidated damages exceed 30% of the total amount owed, you can go to the court to arbitrate and ask for a reduction. For example, if you owe 1,000 to your credit card and haven't paid it back for four years, and the bank demands a repayment of 90,000, you can go to the court to request a reduction.