Abstract: Credit card bad debts are receivables that are the result of failure to clear accounts in a timely manner. They also refer to finances that cannot be recovered because the other party does not repay. Simply put, they are accounts that have not been paid off for a long time. So what does credit card bad debt write-off mean? That is, the cardholder and his/her own credit card bad debts, so as not to affect subsequent loans, etc. The credit card bad debt write-off requires the cardholder to write off the credit card independently and pay off the debt as required, so that his or her bad records can be eliminated. What does credit card bad debt write-off mean?

1. Credit card write-off after credit card bad debt is a way for banks to deal with unrecoverable debts, which has been recorded as a bad personal credit report.

2. First of all, this is the bank's own behavior. Because the cardholder has not repaid the debt for a long time, the bank regards this customer as its non-performing asset. However, writing off credit card bad debts does not mean that you cannot You owe money to the bank; cardholders still need to fulfill their repayment obligations after their credit card is written off. If you do not repay for a long time, your personal credit report will be seriously stained. If you want to have business with the bank in the future, this is Whimsical. Because bad debt is a serious situation in credit cards, it is usually caused by overdrafts and non-repayment of credit cards, which occurs over time.

3. Secondly, we need to be reminded that if bad debts are not resolved, they are basically insulated from bank finance such as loans and credit cards. Personal credit reports will have this record for a lifetime, so once discovered, they must be dealt with in time, and The most basic way to deal with it is to pay off the balance and pay all fees. Although there are still 5 years of overdue records in your personal credit report after paying off the debt, once the 5 years have passed, all previous bad records will disappear. At this time, you can continue to do business with the bank.

How to handle credit card bad debt write-off

1. Adopt independent write-off policy

Consider the characteristics of credit card business and issue a special write-off policy for credit cards separately, in accordance with The idea of ??"strengthening supervision, strengthening internal control, and independent write-offs" is to authorize card-issuing banks that meet regulatory requirements to independently write-off on the premise of strengthening external industry supervision such as the China Banking Regulatory Commission and the Banking Association and strengthening the internal control management of underwriting banks.

2. Lower the threshold for bad debt write-off

Considering the characteristics of credit card business such as high risk and short loan cycle, the write-off policy is different from the "strict write-off" principle of conventional loans. , lowering the credit card write-off threshold.

3. Clarify the conditions for writing off bad debts

First, cancel the specious bad debt identification condition of “after taking all possible measures and implementing necessary procedures” and directly state it as “meeting the following "Bank card overdrafts that meet one of the conditions can be deemed as bad debts", that is, if they meet one of the ten listed write-off conditions, they can be deemed as bad debts. The second is to cancel the limit on the amount of recourse write-offs. Eligible write-offs of more than 20,000 yuan can also be written off, effectively preventing such accounts from litigating and reporting just to obtain write-off certification materials, wasting business costs, and improving write-offs. efficiency. The third is to shorten the suspected fraud category of "being investigated by the public security for more than 1 year" to "being investigated by the public security for more than three months", and shortening the pursuit of fraud "being pursued for more than 1 year" to "being pursued for more than 180 days" .

4. Simplify the write-off procedures of Gao accounts

First, under the policy of “autonomous write-off”, the traditional write-off model of layer-by-level declaration and level-by-level approval is changed to adopt a centralized The write-off model reduces write-off links. The second is to simplify the comprehensive application and write-off materials for credit cards, retain the application summary form and debt certification materials, and do not need to submit investigation reports, declaration forms and other materials. Third, small overdrafts and bad debts are written off in packages to reduce write-off costs and improve write-off efficiency.

5. Determine the standard for accruing bad debt provisions

After analyzing and judging the asset status of the credit card, comprehensively consider the profitability of the business based on the results of non-performing loan classification and inherent losses. and asset quality, determine reasonable bad debt provision standards to truly reflect the operating results of the credit card business, improve the risk resistance of the credit card business, and further expand the scale of operations.

6. Solve the problem of external evidence collection

Except for recourse write-off materials, other types of write-off materials involve external functional departments, and the functional departments often claim that they have no responsibility to provide them. If they are unwilling to issue it, the underwriting bank is often unable to obtain relevant supporting materials. Therefore, the credit card write-off policy should consider the actual situation and clarify some more feasible write-off materials.