1. Bad debts refer to credit card overdue for a long time, and then the contact information, home address and work unit are changed, resulting in the bank being unable to find the cardholder to collect the arrears, so the long-outstanding credit card arrears become bad debts.

2. The original regulations are as follows:

Notice of the People's Bank of China on matters related to credit card business

1. Interest rate standard. Credit card overdraft interest rate is subject to upper and lower limit management. The upper limit of overdraft interest rate is five ten thousandths of the daily interest rate and the lower limit is 0.7 times of the daily interest rate. The calculation method of credit card overdraft interest, whether to calculate and pay interest on credit card overpayment and its interest rate standard shall be determined by the card issuer independently.

2 interest-free repayment period and minimum repayment amount. The conditions and standards for cardholders to enjoy the interest-free repayment period and the minimum repayment amount of overdraft consumption shall be determined by the card issuer independently.

Third, liquidated damages and service fees.

Cancel the late payment fee for credit cards. For the cardholder's default and overdue repayment, the card issuer shall agree with the cardholder whether to collect liquidated damages through agreement, as well as the relevant collection methods and standards. Card issuers shall provide cardholders with card service that exceeds the credit limit, and shall not charge over-limit fees. Card issuers shall not charge interest on the service fees such as liquidated damages, annual fees, cash withdrawal fees and currency exchange fees charged to cardholders.

Extended data

Credit card malicious overdraft

Malicious overdraft of credit card refers to the behavior that the cardholder overdraws beyond the prescribed limit or term for the purpose of illegal possession, and refuses to return it after being urged by the issuing bank. Under normal circumstances, malicious overdraft is a breach of contract, and you need to bear the liability for breach of contract according to the credit card collection contract.

Malicious overdraft behavior includes two basic behaviors: first, overdraft exceeding the prescribed limit, that is, overdraft exceeding the provisions of the credit card charter or the permission of the issuing bank. Second, the overdraft exceeds the prescribed time limit, that is, the principal and interest are not returned within the prescribed time. Generally speaking, malicious overdraft of credit cards will leave a bad credit record in the issuing bank, which will affect the personal credit of cardholders.

Resources Baidu Encyclopedia Credit Card Overdraft