Consequences of rapid optimization of overdue loans

Legal analysis: In addition to the liquidated damages collected by the platform, it will also be collected by SMS, telephone and door-to-door, which will affect the normal work, life and reputation of individuals. If you don't bring a lawsuit to the court for a long time, you should bear the corresponding legal responsibility if the circumstances are serious.

Legal basis: Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases.

Article 28 If the borrower and the lender have an agreement on overdue interest rate, such agreement shall prevail, but it shall not exceed four times the market interest rate of one-year loan at the time of the establishment of this Contract.

If the overdue interest rate is not agreed or clearly agreed, the people's court may handle it according to different circumstances:

(a) the people's court shall support the lender's claim that the borrower should bear the liability for breach of contract for overdue repayment with reference to the interest calculated by the one-year loan market at that time from the date of overdue repayment;

(2) If the interest rate during the loan period is agreed, but the overdue interest rate is not agreed, the people's court shall support the lender to claim that the borrower shall pay the interest during the capital occupation according to the interest rate during the loan period from the date of overdue repayment.

Article 29 The lender and the borrower have agreed on overdue interest rate, liquidated damages or other expenses. The lender can choose to claim overdue interest, liquidated damages or other expenses, or both, but the people's court will not support the part that exceeds 4 times the quoted interest rate of the one-year loan market when the contract is established.