What are the consequences of forced account cancellation for overdue credit cards?

If the account is forced to be canceled due to overdue reasons, it is generally due to excessive bad credit records and the bank’s Forced cancellation due to risk control reasons. In this case, the bank card under the account cannot be used, and you cannot apply for registration again until your credit is improved.

Bad credit records will usually not be deleted within 5 years. This means that if your account is canceled due to bad credit, you will not be able to apply for a credit card from the bank for at least 5 years. Also, when applying for a credit card from other banks, they will also check your credit score. If you have a bad credit record, there is a high chance that your credit card application from other banks will be rejected. Therefore, when we use credit cards, we must pay them back in time to avoid overdue payments.

Legal Basis

"Interpretation of the Supreme People's and Supreme People's Procuratorate on Several Issues Concerning the Specific Application of Law in Handling Criminal Cases Obstructing the Management of Credit Cards" Article 6 The cardholder shall, for the purpose of illegal possession, If the card is overdrafted beyond the prescribed limit or within the prescribed period and is not returned for more than 3 months after being called upon twice by the card-issuing bank, it shall be deemed a "malicious overdraft" as stipulated in Article 196 of the Criminal Law.

If any of the following circumstances occurs, it shall be deemed as "illegal possession for the purpose" as stipulated in the second paragraph of Article 196 of the Criminal Law:

(1) Knowingly not possessing A large amount of overdraft due to the ability to repay the loan cannot be returned;

(2) The overdraft funds are squandered wantonly and cannot be returned;

(3) Escape, change contact information, and evade after overdraft Bank collection;

(4) Escape and transfer funds, conceal property, and evade repayment;

(5) Use overdraft funds to carry out illegal and criminal activities;

(6) Other behaviors of illegally possessing funds and refusing to return them.

Criminal liability should be pursued for malicious overdrafts, but if all the overdraft interest has been repaid after the public security organ files the case and before the people's judgment is pronounced, the person may be given a lighter punishment. If the circumstances are minor, the penalty may be exempted.

If the amount of malicious overdraft is relatively large and all the overdraft interest has been repaid before the public security organ files the case, and the circumstances are obviously minor, criminal liability may not be pursued in accordance with the law.

What should I do if the bank forces me to cancel my card due to overdue payment? The consequences are more serious than imagined

After the credit card is overdue, it is best to pay off the debt and continue to use the card to generate new records to cover up the bad records, so that there will not be much impact on credit business in the future. . However, many people's credit cards have been forcibly canceled by their banks after they expired, making it impossible to use the cards. So, what should you do if your bank forces you to cancel your card due to overdue payment? Let’s take a look.

What should I do if the bank forces me to cancel my card due to overdue payment?

Usually overdue credit cards are rarely forcibly canceled. This is only possible if the card is seriously overdue. Usually it is at least 3 months overdue. If the bank still refuses to pay after being called upon by the bank many times, the bank will Only then will the losses be stopped in time and the cardholder's credit card will be forced to be cancelled, so as not to cause the cardholder to have more debts and increase the bank's bad debt rate.

Once a credit card is forcibly canceled, even if the cardholder subsequently pays off the debt, the bank will not be able to recover it easily, because there is a high chance that the cardholder will be on the bank's blacklist. People can call the bank for consultation, explain that they did not overdue the card maliciously, and promise to the bank that they will use the card well in the future and will not overdue the card again, and the bank may restore it.

But don’t have too much hope. If the bank does not restore it, the cardholder’s overdue record will be eliminated after 5 years of paying off the debt. During this period, you can even apply for credit products from other banks. , it is also very difficult to get approved, so don’t underestimate the consequences of being forced to cancel your card overdue.

The above is the relevant introduction to "What to do if your card is forced to be canceled by the bank due to overdue payment". In short, if your credit card is forced to be canceled by the bank overdue, it may not be restored, so cardholders must not let themselves get to this point. When using your credit card, don’t overdue it easily. If it is overdue, don’t put it off for too long. It’s better to repay it as soon as possible.

The consequences of being forced to close your credit card overdue

The consequences of being forced to close your credit card overdue are as follows:

1) Becoming a black account and unable to use the card for consumption.

2) There is no way to get a loan to buy a house.

3) It affects children’s schooling. Once a credit card is overdue and has not been repaid, the credit card will be frozen.

Usually the credit card will be canceled only after the cardholder has paid off the money and with the cardholder's consent. However, some banks will force cancellation after three months overdue.

If your credit card is overdue, please contact the bank's credit card center as soon as possible to explain the reason and make up the outstanding balance. Generally speaking, each bank will charge a certain amount of interest for overdue repayment. Each bank is different, but it is usually an interest of 0.05%. However, the interest accrual date is calculated from the date of consumption, not the date after the final repayment date. It is recommended that if the entire limit is not met, you can pay the minimum repayment amount first, which will not affect your credit limit. At the same time, there will be a buffer period so that the bank can understand the flow of funds in your account in a timely manner and will not freeze the account. When a credit card (credit card) holder chooses the minimum repayment method or uses the card beyond the credit limit approved by the issuing bank, he will no longer enjoy the interest-free repayment period and must pay the outstanding portion starting from the bank accounting date. Overdraft interest calculated at a prescribed rate.

1. A credit card, also called a credit card, is a credit certificate issued by a commercial bank or credit card company to consumers with qualified credit. It takes the form of a card with the name of the issuing bank, validity period, number, cardholder name and other contents printed on the front, and a magnetic stripe and signature strip on the back.

2. Credit card consumption is a non-cash transaction payment method. There is no need to pay cash when consumption, and repayment will be made on the billing date (BillingDate). Credit cards are divided into credit cards and quasi-credit cards. A credit card refers to a credit card in which the cardholder has a certain credit limit and can consume within the credit limit and then repay; a quasi-credit card refers to a credit card in which the cardholder can A quasi-credit card that deposits a certain amount of reserve fund and can be overdrafted within the specified credit limit when the reserve account balance is insufficient for payment.

This is the end of the introduction about credit card being forcibly canceled by the bank and whether the credit card can be recovered after being forcibly canceled by the bank. Did you find the information you need?