It is recommended to repay as soon as possible.

For cardholders who default on overdrafts, the bank will first use phone calls and employee visits to collect money, and then use lawyers' letters to press money. After 3 months, the bank will take different measures based on the size of the arrears. For overdraft arrears of less than 5,000 yuan, the bank can treat it as a civil dispute and file a lawsuit in court to recover.

At the same time, the user's bad credit record will be reported to the credit reporting system of the People's Bank of China. If a user has a bad credit record in any bank, they will be in great trouble if they need to apply for a mortgage or other loans in the future. What’s even more frightening is that some banks will take punitive measures against such people with bad credit records, blocking all loans to cardholders within 3-7 years.

According to Article 196 of my country's Criminal Law, if a cardholder exceeds the limit or overdrafts within the specified period for the purpose of illegal possession, and fails to return the money after being called upon by the card issuer, this may constitute credit card fraud. If the amount is relatively large, the offender may 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.

Extended information:

Function

Generally speaking, the functions of a lawyer’s letter are:

1. A lawyer’s letter can be used in a convenient way Recover debts such as payment of goods that are owed by the entrustment. Payment arrears often occur in commercial activities. If the problem is solved directly through litigation, it will not only take a long time, but also cause loss of customers. If a lawyer sends a letter to point out the seriousness of the problem to the client, the client will consider resolving the adverse consequences through litigation and will most likely repay the debt.

2. Before filing a lawsuit or applying for arbitration, sending a letter through a lawyer can extend the statute of limitations.

3. Sending a letter through a lawyer can clarify the facts and stop illegal infringements.

Letter from lawyers can clarify facts and deter illegal behavior, which is beyond the reach of ordinary business letters and private letters.

4. Use a lawyer’s letter to fulfill other legal notification obligations. There are many aspects in this regard, such as notification to ratify the agency behavior of an agent without authority, the exercise of the right of insecurity defense, the exercise of the right of concurrent performance defense, the exercise of the right of first-suit defense, notification of the invalidity of a contract, the exercise of the right of rescission, etc., all parties involved Any notification rights you have can be completed through a lawyer’s letter.

5. Notice to terminate the contract. This is a right granted to the parties by the Contract Law. Based on the provisions of Articles 93, 94, and 96 of the Contract Law, the other party is informed that the contract will be terminated upon the arrival of the notice.

If the other party has objections, it may request the people's court or arbitration institution to confirm the validity of the termination of the contract. However, if laws and administrative regulations stipulate that the termination of a contract requires approval, registration and other procedures, the termination cannot be notified through a lawyer's letter.

6. Reach an out-of-court settlement agreement. The conciliatory role of a lawyer's letter is its main purpose. It is for this reason that lawyer letters are becoming more and more popular.

This type of lawyer’s letter encourages both parties to reach an out-of-court mediation agreement by notifying the other party to come, send a letter, or call for negotiation within a specified time limit. However, a specific deadline must be specified and the other party must be given the necessary preparation time. In addition, you must also inform the other party of the consequences if you fail to handle the matter within the time limit, such as prosecution, termination of the contract, cessation of payment, cessation of supply, etc.

Reference materials: Baidu Encyclopedia - Lawyer's letter

Reference materials: Baidu Encyclopedia - Credit card collection