The consequences of defaulting on credit card repayments

1. Bad repayment records will be recorded in the personal credit system, which will affect your handling of other businesses at the bank in the future, such as loans. , mortgage.

2. Interest and late fees will not continue to accrue if you default, and if the bank thinks you are maliciously defaulting, you will be prosecuted in the name of credit card fraud. Credit card fraud is an economic crime.

According to the relevant provisions of the "Criminal Law" and the "Interpretations on Several Issues Concerning the Specific Application of Laws in Criminal Cases Obstructing the Management of Credit Cards", it can be known that the cardholder used the card for illegal possession and after two collections by the card-issuing bank, If you do not repay the money within 3 months and the amount you owe exceeds RMB 10,000, the bank will freeze your card and list you as a prohibited customer (blacklist). At the same time, the bank will also investigate you through the public security organs for credit card fraud and malicious overdrafts. Responsibility, the court will impose a sentence based on the crime of credit card fraud in Article 196 of the Criminal Law!

In addition, the "Interpretation on Several Issues Concerning the Specific Application of Laws in Criminal Cases Obstructing Credit Card Management" lists six situations of malicious overdraft based on judicial practice. :

1. Overdrafting a large amount of money while knowing that one has no ability to repay, and cannot return the repayment;

2. Spending the overdraft funds wantonly, and cannot return them;

3 , Escape after overdraft, change contact information, and avoid bank collection;

4. Escape, transfer funds, hide property, and evade repayment;

5. Use overdraft funds to conduct transactions Illegal and criminal activities;

6. Other behaviors of illegally possessing funds and refusing to return them.

Extended information:

After the credit card is overdue, banks usually do it

1. SMS collection, mainly targeting the overdue repayment behavior of early cardholders. Generally, it is 7 to 15 days overdue, and text messages mainly serve as reminders.

2. Telephone collection, mainly for overdue behavior that exceeds 30 days and exceeds one billing period, and provides telephone reminders for repayment.

3. Door-to-door collection, mainly for overdue payments of more than 90 days, the bank will arrange collection personnel to visit the cardholder's residence or work address to collect repayment.

4. Court prosecution, mainly for cases that are overdue for more than six months. The bank will apply to the court and require the cardholder to sue for repayment.

5. Outsourcing collection is mainly for overdue debts that are more than one year old. The bank will package the overdue funds and give them at a discount to an outsourcing collection company, which will be responsible for collecting overdue debts.

Reference material: Overdue credit card repayment - Baidu Encyclopedia