Legal basis: People's Republic of China (PRC) Civil Procedure Law.
Article 3 Scope of Application The provisions of this Law shall apply to the acceptance by the people's courts of civil lawsuits brought by citizens, legal persons, other organizations and among them for property relations and personal relations.
Article 6 of the Interpretation of the Supreme People's Court and the Supreme People's Procuratorate on Several Issues Concerning the Specific Application of Laws in Handling Criminal Cases of Impairment of Credit Card Management.
If the cardholder overdraws beyond the prescribed limit or time limit for the purpose of illegal possession, and fails to return it for more than three months after being effectively collected by the issuing bank twice, it shall be deemed as "malicious overdraft" as stipulated in Article 196 of the Criminal Law. The purpose of illegal possession should be judged according to the cardholder's credit history, repayment ability and willingness, the application and overdraft of credit cards, the use of overdraft funds, the performance after overdraft, and the reasons for not repaying according to regulations. It is not allowed to identify the purpose of illegal possession just because the cardholder fails to repay the loan according to the regulations. In any of the following circumstances, it shall be deemed as "for the purpose of illegal possession" as stipulated in the second paragraph of Article 196 of the Criminal Law, unless there is evidence to prove that the cardholder does not have the purpose of illegal possession:
(a) knowing that there is no repayment ability and a large amount of overdraft can not be returned;
(2) After applying for a credit card with a false credit certificate, it is overdrawn and cannot be returned;
(3) Escaping after overdraft or changing contact information to avoid bank collection;
(4) evading or transferring funds, concealing property or evading repayment;
(five) the use of overdraft funds for criminal activities;
(six) other illegal possession of funds, refused to return.
Article 196 of the Criminal Law of People's Republic of China (PRC) on Credit Card Fraud
Whoever commits credit card fraud in any of the following circumstances, if the amount is relatively large, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also be fined not less than 20,000 yuan but not more than 200,000 yuan; If the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than five years but not more than ten years, and shall also be fined not less than 50,000 yuan but not more than 500,000 yuan; If the amount is especially huge or there are other particularly serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than 10 years or life imprisonment, and shall also be fined not less than 50,000 yuan but not more than 500,000 yuan, or his property shall be confiscated: (1) using a forged credit card or using a credit card fraudulently obtained with false identification; (2) Using an invalid credit card; (3) Fraudulent use of another person's credit card; (4) malicious overdraft. The term "malicious overdraft" as mentioned in the preceding paragraph refers to the behavior that the cardholder overdraws beyond the prescribed limit or time limit for the purpose of illegal possession, and refuses to return it after being urged by the issuing bank. Whoever steals a credit card and uses it shall be convicted and punished in accordance with the provisions of Article 264 of this Law.