Credit card spending, do
n’t be overwhelmed by desire
□ Our reporter Huang Hui
□ Correspondent Tao Ran
With the continuous refurbishment of online consumption, installment payment, card-holding and other businesses, credit cards provide convenience for ordinary people’s credit consumption, and its continuous service offerings in line with consumer fashion have also stimulated young people’s desire to buy. They are keen to consume in advance.
The Second Financial Court of Nanchang City, Jiangxi Province found through investigations that the court accepted 2372, 4367, and 3592 credit card dispute cases in 2018, 2019, and 2020, respectively. Among them, young people born in the 1990s accounted for an important proportion of credit card defaulting groups. In the past three years, there were 901, 1707, and 1508, accounting for 37.9%, 39.1% and 41.9%.
The data shows that the subjects of credit card disputes are becoming younger, and it also reveals that the credit card issuance audit of financial institutions is not strict, which has caused many hidden dangers.
While people use credit cards quickly and conveniently, the voice and demand for credit card risk prevention are also increasing.
How to regulate the review of credit card issuance by financial institutions?
How to guide young people to establish good personal credit and insist on rational consumption?
This will not only help strengthen the public's prevention and judgment of credit card legal risks and credit risks, but also help build a good social credit system.
Post-90s credit card overdue is not involved in lawsuits
Recently, the Second Financial Court of Nanchang City concluded 9 credit card dispute cases in batches, of which 4 defendants were born in the 90s.
Due to insufficient understanding of the consequences of overdue credit cards, the court ordered the 4 defendants to return the principal of the credit card loans and the corresponding interest, penalty interest and other fees to a branch of China Merchants Bank.
The nine cases heard in this batch are typified financial cases involving the same plaintiff but different defendants.
During the trial, the judge found that the four young defendants had no objection to the credit card overdraft amount involved in the case, but they all reflected to varying degrees that the bank credit card threshold was reduced, which reduced the applicant's credit review efforts, resulting in their overdraft spending far exceeding the repayment amount ability.
After investigation, the four defendants either just graduated and started to work, or their work was unstable. In addition to daily consumption expenses, credit card consumption was also used to purchase high-end mobile phones and luxury goods in installments, and to bind online shopping.
Shopping on a whim, because it is not the concept of cash payment that has no money to spend, which greatly increases the possibility of overdue payment after early consumption.
The credit card was not repaid after the expiry date, and the bank failed to collect the collection many times, so the lawsuit was brought to the court, which triggered a lawsuit.
After review, the court found that the four defendants applied for a credit card to a branch of China Merchants Bank. After the bank issued the card, the defendant opened the card, and the two parties have since formed a loan relationship.
The four defendants used credit cards but failed to comply with the contract and should be liable for breach of contract.
The bank sued the four defendants to return the principal of 92,000 yuan, 218,000 yuan, 232,000 yuan, 105,000 yuan and the corresponding interest penalty, which was supported by a list of arrears issued by the bank, which was reasonable and legal.
In the end, the court made the aforementioned judgment in accordance with the law.
After the judgment was served, the plaintiff and the defendant all accepted the judgment and settled the case.
There are various reasons for the rejuvenation of the subject of the case
The investigation found that the above-mentioned cases mainly showed two characteristics:
—— Strong consumer desire and large amount of the subject matter of the case.
The post-90s group has a strong desire to consume. Among the cases accepted by this court, cases with a value of more than 100,000 yuan are on the rise, from about 18% in previous years to nearly 30% this year.
——The attendance rate of cardholders is not high, and the rate of automatic execution of judgments is low.
The post-90s group is highly mobile, and the delivery power of the address specified in the application form is low, causing more than 80% of cases to be tried in absentia.
After the court has pronounced its verdict, about 70% of the cases have to enter the enforcement process.
Due to the lax review when issuing the card, the bank is usually unable to provide effective property clues, which increases the difficulty of execution.
"The subject of credit card disputes is showing a younger trend, and they are keen to overdraft and consume excessively in advance. There are three main reasons." According to the law officer, first of all, financial institutions redistribute business and are not strictly audited.
In order to ensure the number of card issuances, some financial institutions are lax in reviewing the information submitted by the applicant, which reduces the credit review of the applicant.
Some assessment methods pay too much attention to scale indicators such as the number of customers and card issuance, and the weight of quality indicators such as defective rate and live card rate is small, and the management of card issuance is not strict and the quality is not high.
Secondly, young people are irrational and have limited ability to repay loans.
Most young people have just started working, their jobs are not stable, their incomes are low, they tend to consume too much in advance, liquidity is scarce, and the burden of family life is heavy. In addition to daily expenses, credit card consumption is also used to buy high-end luxury. Payment in installments for products, binding online shopping, repaying loans with a card, etc., once overdue, it cannot be repaid.
"Another reason is that the cardholders are not aware of the consequences and have a fluke." The law officer believes that many post-90s groups have a fluke mentality for not being overdue, and they think that the bank cannot find someone and they can do nothing. Insufficient understanding of the consequences of measures such as those listed as untrustworthy persons being enforced and restricting high consumption.
Risk control and integrity system construction are unified
It is understood that the lax review of credit card issuance and hidden risks have already aroused the attention of relevant authorities.
In 2020, the China Banking and Insurance Regulatory Commission announced the "Guiding Opinions on Preventing Financial Violations and Crimes by Employees in the Banking and Insurance Industry", requiring banking financial institutions to strengthen credit card business management, strict credit review, and prevent abuse of applicants’ actual repayment ability in pursuit of performance. The act of issuing credit cards.
On May 25 this year, the "Regulations of the Supreme People's Court on Several Issues Concerning the Trial of Bank Card Civil Dispute Cases" came into effect. Standardize civil disputes arising from card contracts and the use of bank cards.
"Credit card risk sources are multifaceted, and relevant entities such as the state, society, and individuals should work together to form a joint effort to solve and prevent credit card risks." The law officer reminded that in addition to the improvement of the above-mentioned laws and regulations, credit card business should pay more attention to internal risks. Unification of control and external integrity system construction.
On the one hand, an effective internal control system for credit card business should be established and improved as soon as possible.
There is an urgent need to standardize credit card business at the level of system construction and legal construction, strictly regulate card issuance procedures, improve credit card credit evaluation system, implement bank card management system regulations, increase the review of applicants’ credit information and performance capabilities, and carefully screen customers Provide authenticity of information and strengthen internal supervision.
On the other hand, attention should be paid to the construction of a credibility system and strengthening the crackdown on malicious overdrafts.
Strengthen the publicity of the law to citizens, especially young groups, and guide citizens to prudently open cards, spend within their means, consume reasonably, and establish good personal credit.
Severely crack down on financial dishonesty, strengthen the enforcement of credit punishments in accordance with the law, and continue to strengthen the publicity of the "blacklist" of dishonesty, so that malicious credit card overdrafts are "invisible", thereby forcing cardholders to use credit cards in accordance with laws and regulations to prevent and Reduce the legal risks of credit cards.