Will the bank entrust a third party to handle overdue credit cards?

The third party has the right to report the case, but not the right. But you should still pay it back as soon as possible. To avoid creditors. If the debt is overdue or fails to repay after two reminders, the person concerned will be prosecuted. First of all, if the party still fails to repay after multiple reminders, a civil lawsuit will be filed against the company. After the people's trial, if the party concerned still fails to repay the loan, the case may be transferred to the public security organ for investigation and formally established as a criminal case. After investigation by the public security organ, the case will be sent to the Procuratorate for prosecution.

Legal basis:

"People's Republic of China and Civil Code"

Article 667 A loan contract is a loan from the borrower to the lender , a contract to return the borrowed money and pay interest when due.

Article 668: A loan contract shall be in writing, unless otherwise agreed upon for a loan between natural persons. The content of a loan contract generally includes terms such as loan type, currency, purpose, amount, interest rate, term and repayment method.

Is it legal for a bank to entrust a third party to collect overdue credit cards?

When applying for a credit card, each person handling the credit card must read the credit card application contract carefully and sign for confirmation. Three-party phone reminders, door-to-door reminders, lawyer letters, and repayment services can also be entrusted to law firms, so third-party collection is legal.

Why don’t banks collect debts themselves but leave it to a third party?

The bank’s own collection costs are high.

The longer the overdue time, the greater the coefficient of recovery rate, which requires a lot of manpower, material resources and time. Leaving professional matters to professional people can save banks costs.

You can avoid some responsibilities. If there is public opinion due to collection, the bank can push it to a third party.

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Is it legal for third-party collection on overdue credit cards?

Legal analysis: Entrusted by the card issuer It is illegal for a third party to collect credit card debts; but from a practical point of view, most domestic banks currently entrust third parties to collect debts. It has become a de facto "legal" act, but the premise is that the debtor must be notified. Overdue credit card means that the credit card user fails to repay the loan on the repayment date specified by the bank. If you fail to repay your credit card overdue, it may affect your credit score in the bank and have a negative impact on future loans. The bank will also charge a certain amount of interest for overdue repayments.

Legal basis: "People's Republic of China and Civil Code"

Article 675 The borrower shall repay the loan within the agreed time limit. If there is no agreement on the loan period or the agreement is unclear, and it cannot be determined according to the provisions of Article 510 of this Law, the borrower may return it at any time; the lender may urge the borrower to return it within a reasonable period of time.

Article 676 If the borrower fails to repay the loan within the agreed time limit, it shall pay overdue interest in accordance with the agreement or relevant national regulations.

Article 678: The borrower may apply to the lender for an extension before the repayment period expires; if the lender agrees, the extension can be made.

That’s it for the introduction of credit card entrusted third parties.