Legal analysis: Banks operate legally and all projects are approved by the China Banking Regulatory Commission. Whether credit card lending is illegal depends on the way the lender overdrafts the credit card to obtain cash. If the lender obtains a cash loan through a regular credit card withdrawal, it is not illegal. If the lender avoids the cash withdrawal methods provided by the bank and uses false transactions to increase the credit limit on the credit card. Withdrawing money in the form of cash, such as overdrafting a credit card to withdraw cash through a personal POS machine or a third-party cash-out platform, is a credit card cash-out and is illegal.

Legal basis: Article 196 of the Criminal Law of the People's Republic of China and the People's Republic of China. Whoever commits credit card fraud in any of the following circumstances and the amount is relatively large shall be sentenced to fixed-term imprisonment of not more than five years or Criminal detention and a fine of not less than 20,000 yuan but not more than 200,000 yuan; if the amount is huge or there are other serious circumstances, the person shall be sentenced to fixed-term imprisonment of not less than five years but not more than 10 years and shall also be fined not less than 50,000 yuan but not more than 500,000 yuan; if the amount is particularly huge Or if there are other particularly serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than ten years or life imprisonment, and shall also be fined not less than 50,000 yuan but not more than 500,000 yuan, or his property shall be confiscated: (1) Using a forged credit card, or using a false identity certificate to defraud (2) Using an expired credit card; (3) Pretending to use another person’s credit card; (4) Malicious overdraft.