Central Bank： From January 1 next year, credit card liquidated damages will no longer be ＂profitable＂

　　From January 1st next year, the Notice of the People’s Bank of China on Relevant Matters Concerning Credit Card Business will be officially implemented. The "Notice" standardized and reduced various charging items of bank credit cards, such as changing the "late payment fee" for interest accrual into a one-time "penalty fee" and canceling the over-limit fee for credit cards.

　　Late fees become liquidated damages.

　　In the current regulations, if the actual repayment amount is lower than the minimum repayment amount after the due repayment date, the cardholder will pay a late fee for the unpaid part of the minimum repayment amount. The New Deal canceled the late payment fee for credit cards and changed it to "For the cardholder’s overdue repayment, the card issuer should agree with the cardholder whether to collect liquidated damages through agreement, as well as the relevant collection methods and standards."

　　In the past, when the late payment fee standard was implemented, once the cardholder failed to repay the minimum amount, he had to bear high overdue fees, and the charging method was generally compound interest on a monthly basis. If you pay it back a few days late, the interest will snowball and the arrears will increase. Therefore, in recent years, it is not uncommon to see the news that the late payment fee of credit card "rolling interest" leads to high bills. After the implementation of the new regulations, the expenses incurred by liquidated damages in the future will be collected in one lump sum, and no compound interest will be calculated.

　　At present, many banks have adjusted the late payment fee to liquidated damages, and set the standard of liquidated damages at 5% of the unpaid part of the minimum repayment amount. Some banks have set the maximum or minimum charges.

　　ATM cash withdrawal rose to 10 thousand

　　The Notice will increase the limit for cardholders to withdraw cash from credit cards through ATMs from the current accumulated 2,000 yuan per card to 10,000 yuan per day, and cash withdrawal at the counter is not subject to this limit.

　　Dong Zheng, editor-in-chief of I Love Card Forum, pointed out that the loosening of the cash advance business of credit cards is a highlight of the New Deal. In foreign countries, the use of credit card to withdraw cash is carried out by the acquiring institution by installing a proprietary withdrawal system on the POS machine, which is a supplement to the ATM system. However, in China, credit card advance cash is often labeled as "cash". In fact, some small and medium-sized enterprise operators who can’t get bank loans have to cash in. With the rise of internet finance, there are more and more micro-loan services in the market, and the credit business of traditional banks is facing a great impact. In this case, the loosening of credit card cash advance business is a reflection of the traditional financial industry’s changing thinking.

　　The reporter learned that credit card overdrafts should not only charge cash handling fees, but also charge overdraft interest.

　　Overdraft interest can be "priced" around

　　Another important revision in the Notice is that the credit card overdraft interest rate policy is more market-oriented.

　　At present, the credit card overdraft interest rate of all banks is basically five ten thousandths of the daily interest rate, that is, the annual interest rate is about 18.25%. The Notice expands the overdraft interest rate of credit cards to a range, with a minimum discount of 30%, that is, the annual interest rate is about 12.78%. For small banks, due to competition considerations, it is very likely that overdraft interest will be charged according to the minimum standard in the future. If the amount is relatively large, the annual discount of 5.47% is enough to attract more consumers to apply for credit cards.

　　"Overdraft" refers to the ways in which the cardholder pays by using the credit line approved by the card issuer, including consumption overdraft, installment payment, cash withdrawal overdraft, transfer overdraft and overdraft deduction. The cardholder can repay according to the minimum repayment amount indicated in the statement. If repayment is made according to the minimum repayment amount, the card issuer will only charge overdraft interest for the outstanding part from the bank bookkeeping date to the repayment date. Failure to repay the minimum repayment amount before the due repayment date (inclusive) shall be deemed as overdue.

　　Dong Zheng said that banks are now evaluating users’ credit status, and cardholders with different credit status may get different overdraft interest rates in the future.

　　Cancel the over-limit fee

　　I believe many hands-chopping people people have accidentally maxed out their credit cards. At this time, the bank will charge a certain percentage of the credit limit, usually 5%, which is called the credit card overrun fee. The existence of over-limit fees has made many cardholders feel distressed.

　　The New Deal clearly stipulates that if a bank provides cardholders with card services that exceed the credit limit, it shall not charge an over-limit fee. Recently, a number of banks have announced that this fee will be cancelled from next year.

　　In addition, Article 7 of the Notice stipulates how banks should deal with credit card theft by cardholders. The Notice pointed out that when a cardholder proposes transactions that are not authorized by himself, such as fake card transactions and account theft, the card issuer should promptly guide the cardholder to retain evidence, handle error disputes in accordance with relevant rules, and regularly report the progress to the cardholder. Encourage card issuers to reasonably compensate cardholders for their losses according to law through commercial insurance cooperation and provision of risk compensation funds.

　　Dong Zheng said: "As the first line of protection to deal with the problem of stolen brushes, banks are the main sustenance for cardholders to solve the problem. Improper handling will aggravate the dissatisfaction of cardholders. The new regulations require banks to give cardholders a relatively clear reply and encourage banks to make reasonable compensation through commercial insurance, which will help to establish a safe and healthy card environment as soon as possible. " Our reporter Zhang Pinqiu J229