Consequences of overdue credit cards:

1. Consequence 1: Being harassed by reminders

(1) The first step is to notify by phone, and the first few phone notifications Generally, the customer will be notified by phone at the credit card customer service center.

(2) If the collection is unsuccessful, the card issuing bank will entrust the collection business to a third party, and a third-party specialized collection company will handle the collection. The method is to send text messages, bombard phone calls, and even door-to-door collection. But it is a bank after all, and it will not let the collector do anything too outrageous.

(3) If this still does not allow the cardholder to successfully repay the loan. Then the legal department of the card issuer will intervene and collect the money from the cardholder by filing a lawsuit in court.

2. Consequence 2: Sued by the bank

(1) The cardholder’s personal credit report has been added to the blacklist, and it will definitely not be possible for a long time to come. Then handle any bank-related credit business.

(2) Every cardholder will receive a summons from the court, and the court will also assist the bank in collection. However, the court will not directly make the card holder bear the corresponding legal responsibility. It will first investigate the card holder and carry out corresponding persuasion work to urge the card holder to repay. If the cardholder still refuses to repay and does not come up with a specific repayment plan, the court will enforce it.

(3) Enforcement means that if the cardholder has assets, the cardholder’s assets will be used to liquidate the credit card debt owed. Such as querying, freezing, and transferring the deposits of the person being applied for execution, sealing, detaining, auctioning, and selling off the property of the person being applied for execution, etc. However, when these measures are taken, the necessary living expenses of the person subject to execution and his dependent family members will be retained.

3. Consequence 3: jail time and fines

Generally speaking, if a credit card is overdue for more than 3 months, it can be regarded as being caught and fined for malicious overdraft of the credit card and suspicion of credit card fraud. Sometimes it depends on the repayment attitude and sincerity of the cardholder. If the debtor communicates well with the bank staff, admits that he did not intentionally fail to repay, repay part of the principal first, and develop a reasonable repayment plan, then the probability of being caught as a malicious overdraft is very small.

Another possibility of being caught is that if you still fail to repay the loan in accordance with the judgment after the court's judgment, you will violate the crime of refusing to execute the judgment or ruling stipulated in Article 313 of the "Criminal Law": against the People's Court's Anyone who has the ability to execute a judgment or ruling but refuses to execute it, if the circumstances are serious, shall be sentenced to fixed-term imprisonment of not more than three years, criminal detention, or a fine; if the circumstances are particularly serious, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than seven years, and shall also be fined.

Therefore, if you encounter late repayment or even no ability to repay within a certain period of time. You should negotiate with the bank, explain your specific situation clearly, express your determination to repay, and re-negotiate with the bank to work out a repayment method that suits your current situation. Never maliciously fail to repay when due or even maliciously default on payment at any time. Not mentioning that you will be held legally responsible and have to pay late fees and penalty interest, it will bring a lot of inconvenience if your personal credit record is blacklisted.

Extended information:

1. Credit card interest

1. If the cardholder pays off all credit card debt before the due payment date, the interest rate will be calculated based on consumption. Depending on the time, you can enjoy an interest-free period of up to 50 days, during which no interest is required.

2. If the cardholder can only repay the minimum payment, interest will be paid according to normal standards, there will be no penalty, and the credit record will not be affected.

3. If the cardholder fails to repay the full amount, penalty interest will be charged. According to industry practice, the daily interest rate for credit card cash withdrawals or unpaid bills is calculated at 0.05%, and compound interest is calculated monthly. For example, the minimum repayment amount is 1,000, but only 200 is repaid, then it is (1000-200)*5 %=40 yuan. It will also affect your credit history.

2. Repaying the credit card debt

Failure to pay the credit card debt will result in high interest rates and late payment fees, and will also affect your personal credit record. If the debt is due maliciously, will also be held criminally responsible. Cardholders can take the following measures to solve the problem:

1. Repay the minimum repayment amount. As long as the cardholder can repay the minimum amount, the bank will neither charge late fees nor affect personal credit. However, Interest will be charged at 0.05% per day.

2. Take the initiative to negotiate with the bank. Cardholders need to contact the card-issuing bank to explain their situation, indicating that they do not owe the debt maliciously, but are unable to pay it off immediately due to temporary changes in economic conditions, and apply for an extension. Generally speaking, as long as the cardholder takes the initiative to contact the bank, the bank will usually design a repayment method acceptable to both parties.

Reference: Baidu Encyclopedia--Credit Card