New rules for overdue credit cards in 2020

1, liquidated damages instead of late fees: after the implementation of the new credit card regulations, late fees will be replaced by liquidated damages. Although both fees are charged at 5% of the unpaid part below the minimum repayment amount, liquidated damages will prevent the occurrence of interest.

2. Improvement of credit card sentencing standards: If a credit card fails to be returned within the time limit, it may be investigated for criminal responsibility, especially for malicious overdraft, which constitutes the crime of credit card fraud, and then it will be arrested and sent to prison. The new regulations on overdue credit cards raise this sentencing standard from the previous 1 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 may not be 10%, and the specific amount shall be determined by the bank. At present, most banks still set the minimum repayment amount at 10%, and some are 5% or even lower.

4. Set the upper and lower limits of overdraft interest rate: In the past, credit cards used to bear interest at the daily interest rate of five ten thousandths after the interest-free period, but the new regulations set the upper and lower limits of overdraft interest rate, with the upper limit being five ten thousandths of the daily interest rate and the lower limit being 0.7 times of the daily interest rate, generally in the range of 0.035%-0.05%.

5. Interest-free period or more than 60 days: In the past, the interest-free period of credit cards was as short as 20 days and as long as 56 days. However, after the implementation of the new regulations, the interest-free period of some banks can be as long as 60 days, equivalent to two months, which is a good thing for cardholders.

6. Credit card cash withdrawal is included in the minimum repayment amount: In the past, credit card cash withdrawal did not require one-time repayment, but the new regulations stipulate that the current month's cash withdrawal amount enters the minimum repayment amount of this month's bill and must be paid off in one lump sum, otherwise it will be overdue. This will increase the repayment pressure of cardholders, so it is still not easy to withdraw cash.

Extended data

In order to help the construction of social credit system and prevent financial risks, banks have also taken a series of measures.

Take Minsheng Credit Card as an example: in the process of issuing cards, the front-end market customers are strictly screened, and a reasonable credit line is given according to the credit situation and repayment ability of customers; In the process of customers using the card, real-time monitoring and early warning are carried out through the risk monitoring management system to prevent fraud risks from multiple dimensions. If the customer is found to be untrustworthy, he will control his account in time; For customers who fail to keep their promises and are overdue, we will adopt a variety of compliance collection methods to recover overdue funds within a controllable period.

Specifically, in the early stage of collection, customers are mainly reminded to repay on time by SMS, telephone and email. If they default, they will face the risk of dishonesty; Thanks to the development of financial technology, Minsheng Credit Card has also applied intelligent voice to collection reminders, achieving a "double improvement" in collection efficiency and customer experience.

As the customer's overdue situation changes, the bank will visit at home, focusing on communicating the rights and obligations of both parties and the adverse legal consequences. In view of malicious long-term overdue, the further way is judicial collection, that is, through criminal reporting, civil arbitration or litigation.

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