Relevant departments pointed out that illegal collection of credit cards is not allowed when they are overdue. Not only that, but also the late payment fee will be cancelled. From 202 1 onwards, the credit card will no longer be charged late fees, but will pay a certain percentage of liquidated damages. The release of this new regulation has well avoided the emergence of "usury" and is beneficial to the majority of users.

Improvement of sentencing standards

But don't worry about the overdue credit card, because the sentencing standard of credit card has improved. If it is maliciously overdue, the bank can sue. The sentencing standard has been raised from the previous 1 000 to 50,000, and the debtor can pay off the debt in five years at most, but the specific repayment time needs to be coordinated with the bank.

Strictly manage merchant POS machines.

I believe many people have done this kind of cashing with credit cards. Many people may think that it is nothing to cash out occasionally, and banks will not find it. Actually, it's not. Every credit card you handle has to go through the bank, and cashing out is simply "hiding" in the bank.

It is clear in this new regulation that the bank card acceptance terminal issued by the acceptance institution needs to have positioning function and adopt tamper-proof technologies such as password identification. This means that the era when offline acquiring institutions expect to rely on POS machines to "lie down and earn money" will never return, and China also explicitly prohibits the situation of "one machine with multiple households".

As the relevant departments begin to strictly investigate the POS machines of merchants, the behavior of cashing out and "one machine with multiple households" will no longer exist. If Kanu still wants to "raise the card with the card", the cost will also increase greatly. On the one hand, it effectively put an end to the credit card cashing behavior, on the other hand, it is also conducive to rectifying the payment market.

Legal basis: Article 3 of the Notice of the People's Bank of China on Matters Related to Credit Card Business cancels the credit card penalty and service fee. For the cardholder's overdue repayment, the card issuer shall agree with the cardholder through agreement whether to collect liquidated damages, as well as the relevant collection methods and standards. Card issuers shall provide cardholders with card service that exceeds the credit limit, and shall not charge over-limit fees. Card issuers shall not charge interest on the service fees such as liquidated damages, annual fees, cash withdrawal fees and currency exchange fees charged to cardholders.