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New regulations on credit card overdue in 2020

1. Liquidated damages replace late payment fees: After the implementation of the new credit card regulations, late payment fees arising from overdue payments will be replaced by liquidated damages, although both charges are based on 5% of the unpaid portion below the minimum repayment amount. Collected, but liquidated damages will prevent the occurrence of interest compounding.

2. Increased credit card sentencing standards: If a credit card is overdue, you may be held criminally responsible, especially if you maliciously overdraft your credit card, constituting credit card fraud, you will be arrested and imprisoned. The new regulations for overdue credit cards have raised the sentencing standard from the previous 10,000 yuan to 50,000 yuan.

3. The minimum repayment amount may be lower than 10: After the new credit card regulations, the minimum repayment amount of the bank is not necessarily 10. The specific amount is determined by the bank itself. At present, most banks still set the minimum repayment amount at 10, and some are 5 or even lower.

4. Set upper and lower limits on overdraft interest rates: In the past, credit cards that exceeded the interest-free period were calculated at a daily interest rate of 0.5%, but the new rules set upper and lower limits on overdraft interest rates. The upper limit is The daily interest rate is 5/10,000, and the lower limit is 0.7 times the daily interest rate of 5/10,000, which is generally in the range of 0.035-0.05.

5. The interest-free period may exceed 60 days: The previous interest-free period for credit cards was as short as 20 days and as long as 56 days. However, after the implementation of the new regulations, some banks have interest-free periods of up to 60 days. 60 days, which is equivalent to two months of free use of the card, is a good thing for cardholders.

6. Credit card cash withdrawals are included in the minimum repayment amount: In the past, credit card cash withdrawals did not require a one-time repayment, but the new regulations stipulate that the monthly cash withdrawal amount will enter the minimum repayment amount of this month's bill, and must be repaid in one go. Please clear it otherwise it will be overdue. This increases the repayment pressure on cardholders, so it is better not to withdraw cash easily.

Extended information

In order to help build the social integrity system and prevent and resolve financial risks, various banks have also taken a series of measures.

Take Minsheng Credit Card as an example: In the card issuance process, the front-end market customer group is strictly screened, and credit lines are reasonably granted based on the customer's credit situation, repayment ability, etc.; during the customer's card use process, through the risk monitoring management system Real-time monitoring and early warning, multi-dimensional prevention of fraud risks, if a customer's dishonesty is discovered, their account will be promptly controlled; for customers who are overdue due to breach of trust, a variety of compliance collection methods will be adopted to recover overdue amounts within a controllable period.

Specifically, in the early stage of collection, customers are mainly reminded to repay on time through text messages, phone calls, emails, etc. If they default, they will face the risk of breach of trust; thanks to the development of financial technology, Minsheng Credit Card will also use smart voice applications In collection reminders, collection efficiency and customer experience are “double-improved”.

As the customer's overdue situation changes, the bank will visit the customer's home and communicate with them focusing on informing the rights and obligations of both parties and adverse legal consequences. For malicious long-term overdue payments, a further level of approach is judicial collection, that is, collection through criminal reporting, civil arbitration, or litigation.

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