You will not go to jail if you owe more than 20,000 on a credit card.

Credit cards, also called credit cards, are credit certificates issued by commercial banks or credit card companies to consumers with qualified credit. It takes the form of a card with the name of the issuing bank, validity period, number, cardholder name and other contents printed on the front, and a magnetic stripe and signature strip on the back. Consumers holding credit cards can shop or consume at specially appointed commercial service departments, and then the bank will make settlements with merchants and cardholders. Cardholders can overdraft within the prescribed limit.

Credit cards are divided into credit cards and quasi-credit cards. Credit cards refer to credit cards in which the cardholder has a certain credit limit and can consume within the credit limit and then repay. Quasi-credit cards It refers to a quasi-credit card in which the cardholder deposits a certain amount of reserve fund as required. When the reserve account balance is insufficient to pay, the cardholder can overdraw within the specified credit limit. The so-called credit card generally refers to a credit card only.

Mainly based on the following considerations:

1. Implementing step-by-step and gradual reforms will help card issuers further accumulate pricing data and experience during the transition period, and guide them to improve credit card interest rates Pricing mechanism;

2. The credit card risk control and pricing capabilities of each card issuer are uneven. The guidance of upper and lower interest rate limits will help prevent individual card issuers from blindly cutting prices and engaging in price wars, leading to unfair competition and High-risk customers borrow excessively, thereby increasing credit risks and causing partial chaos in the market;

3. When the information disclosure mechanism needs to be strengthened, setting an upper limit on overdraft interest rates will help prevent individual card issuers from unreasonably charging too high interest to protect the legitimate rights and interests of cardholders.

Legal Basis

"Provisions of the Supreme People's Court on Several Issues Concerning the Trial of Bank Card Civil Disputes"

Article 2 The card issuer shall enter into a When entering into a bank card contract, the obligation to remind or explain standard clauses such as interest, compound interest, fees, liquidated damages, etc. is not fulfilled, resulting in the cardholder not paying attention to or understanding the clause. The cardholder claims that the clause does not become the content of the contract. If it is not binding, the People's Court shall support it.

The card issuer requires the cardholder to pay overdraft interest, compound interest, liquidated damages, etc. in accordance with the credit card contract, or to pay installment fees, interest, liquidated damages, etc., and the cardholder shall pay the total amount claimed by the card issuer. If a request is made for an appropriate reduction on the grounds that the amount is too high, the people's court shall comprehensively consider the relevant national financial regulatory provisions, the amount and period of outstanding repayment, the degree of fault of the parties, the actual losses of the card issuer and other factors, and make a measurement based on the principles of fairness and good faith. and make a ruling.