In addition, banks are also very strict in handling overdue credit cards, which will not only result in penalty interest, but also affect personal credit records. In serious cases, they will also file a civil lawsuit with the court on the charge of "malicious overdraft", and even report to the police, which is very likely to happen.
What are the consequences of overdue credit cards?
1, resulting in a higher late payment fee. The so-called late payment fee means that the credit card holder fails to repay or repay the minimum repayment amount owed before the expiration date (inclusive), but should pay it to the issuing bank according to the regulations.
2. overdue interest: customers usually have an interest-free period of 20-50 days after using credit cards. After this period, there will be no reduction, but interest of 0.5 ‰ per day, that is, the annual interest rate is 18%.
3. The credit card will be deactivated: if the credit card is overdue, the bank will think that the user cannot repay the loan and the credit card limit will be deducted. In severe cases, the credit card will be deactivated.
4. Impact on credit reporting: Overdue credit cards will be incorporated into the bank credit reporting system and become bad credit records, which will have an impact on the handling of credit cards such as loans in the future.
5. Legal liability: If the credit card is overdue for more than three months, the bank will entrust a lawyer to send a lawyer's letter to the customer and take it to court. Among them, malicious overdraft of credit cards should also bear criminal responsibility.