The Administrative Measures for Bad Debt Write-off stipulates that overdrafts that cannot be recovered after taking all possible measures and implementing necessary procedures can be identified as bad debts. However, in practice, there are differences on how to understand "all possible measures and necessary procedures", which leads to some overdraft funds that cannot be found or owe a large amount of money that cannot be recognized as bad debts.

In essence, assets that can't actually bring any future cash flow to financial enterprises will form "bad debts", and the possibility of subsequent recovery of loans overdue for more than 180 days is very small.

It is an indisputable fact that there is a policy dilemma in the write-off of bad debts of credit cards. Strict implementation of the existing write-off policy makes it difficult to carry out the write-off work. Avoiding the existing write-off policy will inevitably bring compliance risks. The policy dilemma of credit card bad debt write-off has become a major obstacle to the healthy development of credit card business, which should be highly valued by decision-making departments.

Only by slightly adjusting the credit card bad debt write-off policy, the current situation of credit card bad debt write-off will not be greatly improved.

To fundamentally solve the problem of write-off of credit card bad debts, we must make a breakthrough in the write-off policy, fully consider the characteristics of credit card business, and distinguish the write-off of credit card loans from the write-off of corporate business and general mortgage loans.

Extended data:

According to the management method of bad debt write-off, credit card overdraft must go through court proceedings, public security reporting and other legal procedures. Or pursue 1 year or more to meet the verification conditions. The write-off condition of 1 year far exceeds the internationally accepted l80-day standard.

Simplify the procedures for writing off bad debts;

First, under the policy of "independent write-off", the traditional write-off mode of step-by-step declaration and step-by-step approval is changed, and the centralized write-off mode is adopted to reduce the write-off links.

The second is to simplify the verification materials of credit card common declaration, keep the declaration summary table and creditor's rights certification materials, and do not need to submit investigation reports and declaration forms.

Third, small overdraft bad debts are packaged for write-off, which reduces write-off costs and improves write-off efficiency.

Baidu Encyclopedia-Write-off of Bad Credit Cards