1. Bad debts refer to the fact that the credit card has been overdue for a long time and has not been repaid, and later changed its contact information, home address and work unit, resulting in the bank being unable to find the cardholder to collect the arrears, so the credit card arrears that have not been settled for a long time have become bad debts.

II. The original text of the regulations is as follows:

Notice of the People's Bank of China on Credit Card Business

I. Interest rate standard. The credit card overdraft interest rate is subject to upper and lower limit management. The upper limit of overdraft interest rate is five ten thousandths of the daily interest rate, and the lower limit is .7 times of the daily interest rate. The method of calculating and settling interest on credit card overdraft, whether to calculate and pay interest on credit card overpayment and its interest rate standard shall be determined by the card issuer independently.

2. Interest-free repayment period and minimum repayment amount. The conditions and standards for cardholders to enjoy interest-free repayment period and minimum repayment amount for overdraft consumption shall be determined by the card issuer independently.

iii. liquidated damages and service charges

the late payment fee for credit cards shall be cancelled. for the cardholder's overdue repayment, the card issuer shall agree with the cardholder through agreement whether to collect liquidated damages, and the relevant collection methods and standards. Card issuers that provide cardholders with card services that exceed the credit line shall not charge an over-limit fee. The card issuer shall not charge interest on the service fees such as liquidated damages, annual fees, cash withdrawal fees and currency exchange fees charged to the cardholder.

Extended information

Malicious overdraft of credit card

Malicious overdraft of credit card refers to the behavior that the cardholder overdraws beyond the specified limit or time limit for the purpose of illegal possession, and still refuses to return it after being urged by the issuing bank. Under normal circumstances, malicious overdraft is a breach of contract, and it is necessary to bear the liability for breach of contract in accordance with the credit card collection contract.

malicious overdraft behavior includes two basic behaviors: first, overdraft beyond the prescribed limit, that is, overdraft beyond the provisions of the credit card charter or the permission of the issuing bank. Second, the overdraft exceeds the prescribed time limit, that is, the principal and interest are not returned within the prescribed time. Generally speaking, the malicious overdraft of credit cards will leave a bad credit record in the issuing bank and affect the personal credit of cardholders.

resources Baidu encyclopedia credit card overdraft