Do you feel the same way? After the credit card expired, I paid back my only money every month, but after a few months in a row, I found that the total amount of arrears did not decrease much; some friends also reported that not only did it not decrease, but”the more I paid back.” Attorney Dai told everyone that the main reason for this situation is that they don’t understand the credit card repayment regulations and rules. Read this article to avoid falling into the trap of not paying off the debt. (This article is practical experience, extremely suitable for collection)

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Lao Liang’s credit card was more than 10,000 in a year, and the actual credit was only more than 2,000, which is very distressing

Dai Lawyer’s puzzle:After the expiration date, why I always feel that I keep repaying, but the total amount of arrears is increasing

A netizen from Guangdong, Lao Liang, described to Lawyer Dai this way:

I oweChina Guangfa Bank more than 31,000 yuan, and has never overdue before. Due to the impact of the epidemic this year, income has fallen, and repayment problems have occurred, so a installment of 24 installments has been processed. My monthly income is uncertain, anyway, I will pay it when I have money. Each repayment is about 1,000 yuan, and the total repayment is 9,600 yuan. A few days ago, the collection called me and told me that I still owed more than 29,000 yuan. Even though I couldn’t pay for this account, I owed more than 31,000 and repaid 9,600, but still owed 29,000.

There are not a few netizens who have experienced similar situations. What’s more, they owe more than 20,000. They have repaid for more than 2 years and still have more than 20,000. This question seems counterintuitive, but it is real. Many cardholders are unfamiliar with the rules, which leads to the “more and more repayment” of credit card debts, which will never be paid off.

The ultimate cause of this problem, must be the result of disregard and ignorance of the credit card repayment rules.

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The bank tells you how useful a credit card is, but never tells you how much it costs after the expiration date

The bank has never told you, and you have never known about credit card repayment offset rules

Many netizens find it strange after hearing the term”credit card repayment rules”, indicating that they have never heard of this term. After communicating with many netizens, Lawyer Dai learned that the majority of cardholders start with declaring credit cards, and the bank has never informed the rule. It is for this reason that such a large-scale phenomenon of”continuous repayment, but the total arrears does not fall” occurs.

We analyze the repayment rules of several banks.

SPDB Credit Card (Personal Card) Acquisition Contract Article 3, Article 3 Description in 7 points:(Party A is Shanghai Pudong Development Bank, Party B is the cardholder)

Party B’s repayment date is based on the date when the money reaches its credit card account. If Party B opens multiple credit card accounts with Party A, the overpayment of one account cannot be automatically used to offset the payment of another account. Owed money. When Party A receives the repayment from Party B, it shall repay the various arrears in its credit card account in the following order: If the account status is normal or 1-90 days (inclusive) overdue, according to the previous fees or requirements Repayment shall be made in the order of collecting interest and then principal; if overdue for more than 91 days, repayment shall be made in the order of principal first, then various expenses or interest receivable. The arrears that have been included in the bill have priority to those that are not included in the bill. Party A reserves the right to decide and change the order of repayment above within the scope permitted by laws and regulations.

China CITIC Bank Credit Card (Personal Card) Requisition Contract Article 5, point 5 description:

The amount listed in the bill of Party B and its affiliated cardholder,The order of repayment is interest or expense, principal overdraftParty A has the right to unilaterally change the order of overdue accounts in accordance with regulatory requirements.

China Guangfa Bank Credit Card (personal card) Article 9, point 5 of the contract of use describes:

The account date of the customer’s repayment shall be based on the date the payment reaches the GF Card account. When receiving the customer’s repayment, the various arrears in their credit card account will be repaid in the following order:normal and 1-90 days (inclusive) overdue, according to the previous annual fee, withdrawal fee, and transfer procedure Fees, liquidated damages, various fees, installment fees, and interest receivables, and then the overdraft and withdrawal of the principal and the overdraft of the consumption principal shall be reversed in the order; if it is over 91 days, the principal shall be withdrawn according to the first overdraft and the overdraft consumption. The payment shall be refunded in the order of interest receivable, annual fee, withdrawal fee, transfer fee, liquidated damages, and various fees. The arrears of the pending bills will have priority over the arrears of the unpended bills. The bank reserves the right to determine and change the order of repayment.

Since each bank has a description of similar repayment set-off sequence in the credit card application contract, Lawyer Dai will not repeat them here and list them all.

Through the above contract terms, we can clearly understand the credit card set-off rules after repayment:(1) For the time node agreement, 90 days is a dividing line; (2) For the set-off type It is agreed that within 90 days, interest charges first, then principal, and for more than 90 days, principal first then interest charges. It is the setting of this repayment rule that leads to the phenomenon that the credit card cannot be repaid in any way during the repayment process.

Credit card set-off repayment rules within 90 days of overdue declassification:The repayment of 1,000 yuan actually only offsets the principal of more than 100 yuan. Who stole it? Your repayment?

90 days, or three months, this is the watershed in the order of deduction after repayment. After analyzing the credit card application contracts of all banks, Lawyer Dai came up with the following formula. It is precisely because of these “fee thieves” who keep stealing your repayment.

Within 90 days of overdue, the actual amount received can be calculated by the following formula:

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Lawyer Dai Summarized formula for calculating actual credit card payment amount

Then, let’s analyze the case of Lao Liang at the beginning of this article. If the Laoliang credit card is not cashed out, the annual fee has been waived. Because of Lao Liang’s overdue behavior, he needs to bear the amount of about 31,000 yuan. After the overdue period, he must bear at least liquidated damages, Compound interest billing, installment fee, and interest.

According to the interest rate and fee rate agreed in the credit card application contract of Guangfa Bank, we can understand:

Interest rate and interest clause agreement:

The upper limit of the GF card overdraft interest rate is per ten thousandths of a day Five , the lower limit of the overdraft interest rate is 0.7 times the daily interest rate of five ten thousandths, the upper limit of the annualized interest rate is 18.25%, and the lower limit is 12.775%. Annual interest rate=daily interest rate X 365 days (only daily and annual conversion methods, not as a calculation rule for interest calculation and settlement). The actual overdraft interest rate is affected by different factors such as the number of months and days, the method of calculation and settlement, and the customer’s repayment situation, and may be different from the overdraft interest rate displayed at the time of application. Compound interest is calculated and collected on a monthly basis. The object of compound interest calculation includes all arrears such as principal, interest, and handling fees permitted by laws and regulations to calculate and collect compound interest.

According to the above agreement, Lao Liang’s monthly interest=31,000 yuan * 1.52%=471.2 yuan.

Liquidated damages clause agreement:

Liquidated damages will be collected in groups based on the part of the customer’s minimum repayment of each bill that has not been paid; if the customer fails to pay off on time for more than 2 consecutive months (inclusive) For the repayment amount, liquidated damages will be charged at 6%of the unpaid minimum repayment amount of the customer’s bill; if there is no customer who has not paid off the minimum repayment amount of each bill for more than 2 consecutive months (inclusive), the minimum repayment amount shall be restored 5%of the unpaid amount will be charged as a penalty.

According to the above agreement, Lao Liang’s monthly liquidated damages=31,000 yuan ÷ 12 × 6%=155 yuan.

Instalment fee terms agreement:

Cardholders can choose the number of installments according to their own financial status, and only need to bear the handling fee according to the corresponding handling fee of the number of installments, and they can enjoy interest-free return Payment treatment. For the 6th and 12th periods, the fee rate is 0.7%; for the 18th and 24th periods, the fee rate is 0.72%.

According to the above agreement, Lao Liang’s monthly installment fee=31000*0.72%=223.2 yuan.

Compound interest billing clause agreement:

Compound interest is calculated on a monthly basis, and the object of compound interest calculation includes principal, interest, and all arrears such as the handling fee allowed by laws and regulations to calculate and collect compound interest. The customer’s overdraft interest rate, liquidated damages charging standard, and minimum repayment ratio are determined by the bank based on the customer’s comprehensive performance. The credit card held by the customerPieceDuring the validity period, the bank has the right to adjust from time to time according to the customer’s risk profile, and the specific notice from the bank shall prevail.

According to the above agreement, Lao Liang’s monthly compound interest billing part of the cost=(471.2 yuan + 155 yuan + 223.2 yuan) × (100%+ 1.5%)^3=12.95 yuan

Therefore, if Lao Liang repays 1,000 yuan a month, then Lao Liang’s actual repayment amount is:

The actual amount of Lao Liang received=1,000 yuan for repayment-471.2 yuan for interest-155 yuan for liquidated damages-223.2 yuan for installment fees-12.95 yuan for compound interest=163.55 yuan.

It can be seen that Lao Liang paid back a full year’s money, and the credit card principal dropped by only more than 2,000 yuan. And it was this repayment offset rule that stole Lao Liang’s repayment, and it was also the source of the bank’s secret charges.

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Basically all banks have this type of overlord clause

A rate comparable to loan sharks, is it legal?

In the process of applying for a credit card, a cardholder generally needs to sign two agreements with the bank, namely the”Credit Card Application Regulations” and the”Credit Card Application Agreement”. In these two documents, there are clear regulations on liquidated damages and installment fees. According to my country’s contract law, as long as both parties have an agreement, the terms agreed upon by both parties can be regarded as valid terms and both parties must abide by it.

Contract law“:One hundred and ten Article 4:The parties may agree that one party should pay a certain amount of liquidated damages to the other party in accordance with the circumstances of the breach, and may also agree on the calculation method for the amount of compensation for losses caused by the breach.

In addition, many credit card application contracts or articles of association have highlighted important clauses, such as The provisions of the Bank of Communications personal acquisition contract.

Important Reminder of Bank of Communications Pacific Personal Credit Card Acquisition Contract :Please read the full text of this contract carefully, especially the terms shown in bold font. If you have any doubts, please promptly ask Party A for explanation.

Therefore, for cardholders who have signed a credit card use contract and credit card regulations with the bank before applying for a credit card, they are obliged to follow these two The contract (or contracts) requires performance of the contract.

Therefore, although the credit card rates of some banks are extremely unscientific, there are not too many rebuttal conditions for cardholders.

Attorney Dai’s suggestion:understand the rules of credit cards, use credit cards reasonably and legally, and avoid”repaying more and more” credit card debts, and there will never be a date for repayment

Because of space issues, Attorney Dai did not elaborate in this article the deduction rules in the case of collection intervention (leave it to the next article for explanation). It is true that credit cards have now become one of the most important parts of our lives. On the one hand, as a financial product, a credit card is not only a user of credit card regulations, but also a consumer of credit card products for cardholders. Therefore, only by actively understanding the credit card rules and using the credit card reasonably and legally can you truly use the credit card. And it’s more important to understand the credit card offset rules. Only in this way can you avoid”repaying more and more” credit card debts, and there will never be a date for repayment.

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Lawyer Dai is the award-winning lawyer for the second season of Toutiao Law Gold Medal Judge