Be careful of getting into credit card installment disputes
Our reporter Qian Qingni
Nowadays, more and more people choose credit card installment, but some disputes also follow.
Not long ago, the Consumer Insurance Bureau of the China Banking and Insurance Regulatory Commission issued the "Consumption Tips on the Reasonable Use of Credit Cards" and pointed out that the credit card business has developed rapidly in recent years and has become an important part of the bank's retail business. It has played a role in promoting residents' consumption and facilitating residents' lives. Active role, but the problems in the use process have become increasingly prominent.
For the majority of financial consumers, what are the precautions when choosing a credit card business? The Shanghai Banking and Insurance Regulatory Bureau suggested that the credit card installment business should be scientifically identified first. In practice, after reaching an agreement with the bank, cardholders can apply for instalment repayment for outstanding bills, or for large consumption such as car purchases and decorations. If the cardholder needs cash flow urgently, he can apply for cash transfer or cash withdrawal within the credit card cash advance limit. According to relevant regulatory regulations, cash advance business does not enjoy interest-free repayment period or minimum repayment in principle. Cardholders who really need to repay in installments can apply for it.
Secondly, we must be well aware of the instalment business charges. Banks usually charge a certain amount of interest or handling fee for credit card instalment business. Consumers who encounter banks advertise "interest-free instalment" for credit cards must understand the specific meaning, because interest-free does not mean free. Some banks charge a certain percentage of service fees for instalment services, and different instalment numbers correspond to different rates. Consumers can choose to pay the service fees in installments or one-time. When handling credit card installment services, consumers should carefully read the contract terms, especially those involving handling fees, liquidated damages calculations, etc., and ask the bank for confirmation when necessary, to avoid high personal financial costs caused by excessive installments, and ultimately due to insufficient income. The letter is damaged.
Finally, we must develop the concept of rational consumption and reasonable debt. Rational consumption is a prerequisite for the rational use of credit cards. In recent years, when their personal income cannot meet their consumption needs, some consumers have often processed multiple bank credit card recurring overdrafts. Once their personal accounts are not well managed, they are likely to fall into the debt cycle of "using a card to raise a card". What's more, when the credit card cannot meet the demand, they will borrow through other channels, which can easily fall into the trap of illegal usury and eventually become debt-ridden. In addition, the regulation requires that personal credit card overdrafts should be used in the consumer sector and not in non-consumer sectors such as house purchase, production and operation, and investment. The vast number of card-holders must establish the correct consumption and financial management concepts of living within their means, and make reasonable plans for consumption, savings, and liabilities.