Generally, a credit card can enter the judicial process and file a case after 90 days overdue. The time limit for prosecution is two years.
Consequences of not returning the credit card (dunning step):
(1) The issuing bank collects credit card loans according to law. According to the loan contract and guarantee contract (mortgage or pledge contract), the issuing bank will bring a lawsuit to the court, and the court will take measures such as property preservation, including freezing the bank deposit of the credit user and sealing up the pledged property.
(2) After the judgment is made, the property will be enforced (deducting deposits, auctioning collateral, etc.). Pay off the bank's loan losses according to law.
Specifically, it includes: default of principal, default of interest, overdue interest, default interest, all litigation costs arising therefrom, and related expenses incurred when disposing of pledged property.
(3) Credit will be affected. If the borrower is a company, your company will be recorded in the national bank credit information system, and credit card overdrafts in the name of individuals will also be recorded as overdue loans in the national personal credit information system.
(4) If you are not in bad faith in defaulting on bank loans and have the ability to pay the interest on normal credit card overdrafts, it is recommended to apply to the credit card center for suspension of repayment first, stating the willingness to repay, the fact that you have not defaulted on your credit card for the time being and the plan for repayment in the future. Normally, the bank will give you a grace period.
Consequences of overdue repayment of credit cards:
1, credit card late fee. The so-called credit card late payment fee refers to the fee that the cardholder should pay to the issuing bank in accordance with the regulations when the repayment date is overdue or the repayment amount is lower than the minimum repayment amount. 2. Overdue interest. After users overdraw with credit cards, there is generally an interest-free repayment period ranging from more than 20 days to more than 50 days. If the cardholder's repayment is overdue, all the expenses of the cardholder last month will no longer enjoy the interest-free treatment of the bank, and the circulating daily interest rate is as high as five ten thousandths, that is, the annual interest rate reaches 18%. 3. Bad credit record. Credit card overdue repayment records will enter the central bank's credit information system to generate bad credit records. 4. Litigation costs. If the credit card is not repaid for more than 3 months, the bank will ask a lawyer to send a lawyer's letter to the user and bring a lawsuit to the court, and the litigation expenses will be borne by the cardholder. 5. Criminal responsibility for malicious overdraft.