Late credit or inability to pay is a constant concern of many credit cardholders. The question now is, if you don't pay your credit card debt, will you go to jail?
For those who own a credit card, they must have experienced the feeling of "headache" because of being late, unable to pay. So, if you don't pay your credit card debt, will you go to jail or not ? Let CashBerry help you answer this question!
More and more people are choosing to open a credit card to shop and enjoy benefits without having to cash or top up their accounts. As long as you have a credit card in hand, you can buy goods online, pay bills, book air tickets, domestic and foreign services,... It's so convenient that many people have "over-handled". spending and inability to repay credit card debt . At this point, they start to panic, will I go to jail if I don't pay my credit card debt?
About credit cards and notes when borrowing
Credit card (Credit Card) is a type of card allows the owner to use the money within the limits agreed with the banks that do not need to have a balance on the card. Simply put, a credit card is a form of debt, you buy goods first and then pay the bank later.
The main limit is the maximum amount of money on the card that you can use to spend. And of course, this limit has been approved by the card issuer, based on your financial condition at the time of card making. Normally, credit cards will be decentralized to use based on the following 3 criteria:
- According to the scope of use, there will be domestic credit cards and international credit cards.
- According to the needs of the cardholder, there will be points card, cashback card, travel card, cash card, privilege card.
- According to the card level, including the main card and the auxiliary card.
Credit card debt to pay attention to what?
Credit card debt is classified as an unsecured loan , which means you do not need to mortgage assets, but only rely entirely on your personal creditworthiness and financial ability. Both the individual borrower and the bank/credit institution will have a contractual agreement with a clear legal basis and guaranteed by law.
Although the card is owned by you, in essence, a credit line is still a loan from the bank. And it is more risky than other forms of cash loans . By the lender, here is the bank / credit institution easily granting another loan for you. And this can be completely repetitive, leading to you spending more than you can afford.
Especially in the complicated situation of the Covid epidemic, the income is not as stable as it is now. If you can't pay your credit card debt, it will happen, leading to the risk of breach of contract and very high penalty.
So, what's wrong with not paying credit ?
One, fees and interest rates when you owe credit
The interest-free period usually lasts 45 days, during this time, if you do not pay the entire loan (in installments), you have to pay extra interest to the bank.
Additional charges incurred when you have not/failed to pay your credit or debt in full are:
● Overdue penalty fee / Late payment fee
A fee is payable because you do not pay the minimum amount due in full and on time to the bank. Overdue penalty fee (late payment fee) is applied by banks at least 5%/time of the total amount you have used on your credit card.
● Credit card interest rate
The bank will continue to charge interest each day on the amount you have not paid, or have not paid in full and only partially paid until you have paid it off. Banks can apply up to 30%, so you need to carefully consider your spending to avoid unpaid credit card debt.
Second, being listed in bad debt groups
Debts that are past due are called bad debts . Applications will be classified as bad debt if they are overdue for more than 90 days from the due date.
How does bad debt group affect you? As mentioned above, unsecured loans are accepted based on personal creditworthiness. When considering a record demand for bank loans , consumer loans , mortgage loan ... Banks will be based on the credit information on the CIC system to determine creditworthiness. And when you are in the bad debt group, you will not be approved for a loan or when you choose to buy installment products , the application will not be approved.
Three, getting annoyed by the debt collection bank and possibly being sued
The bank will use many different methods, from texting, calling, and emailing to remind you to "pay your debt". The frequency will increase over time until you get annoyed and have to pay to get rid of it.
Or you choose not to answer the phone or change the phone sim, how to contact and not pay the credit debt. The bank will first close the account to avoid incurring new expenses.
Then, credit debt is prosecuted ? Certainly there will be if you are still unable to pay the loan. This is the worst case scenario, because the bank has the right to sue to get the money back.
Do not pay credit card debt go to jail ?
After being sued by the bank, if you repay the credit, the lawsuit can be withdrawn. Another option is to ask the Court to settle it according to the agreement of the two parties.
Basically you only need to take administrative responsibility. But if you have an act of running away, have money but deliberately do not pay, you will be prosecuted for criminal responsibility, with the crime of abusing trust to appropriate property.
At this point, “does not paying credit card debt go to jail ?” no longer in doubt. You will have to accept the penalty frames according to Article 175 of the Penal Code 2015, amended and supplemented in 2017. Depending on the following 4 cases:
- Case 1, appropriating from VND 4,000,000 to under VND 50,000,000 or under VND 4,000,000 but has been administratively sanctioned. The applicable fine is non-custodial reform for up to 3 years or a prison term of between 6 months and 3 years.
- Case 2, organized and professional cases, appropriating assets from VND 50,000,000 to under VND 200,000,000; abusing positions, powers and names of agencies or organizations; dangerous recidivism. The applicable penalty will be from 2 to 07 years in prison.
- Case 3, if appropriating property worth from 200,000,000 VND to less than 500,000,000 VND and adversely affecting security and social order. You will be sentenced to imprisonment from 5 years to 12 years.
- Case 4, sentenced to between 12 and 20 years of imprisonment if committing the crime of appropriating property worth 500,000,000 VND or more.
Does not paying credit card debt go to jail? The answer is yes and it only happens when you do not want and do not have the will to cooperate with the bank / credit institution to find a way to pay.
Not everyone can predict everything in the future. Maybe because of some unexpected, you can't afford to pay off your credit card debt on time. Go directly to the bank branch to open the card to conduct an exchange with the staff. Here, you will receive advice on how to best solve it without causing bad debt or being bothered by "debt collection" later.
Or you can also consider the fast online loan of CashBerry financial company instead of opening a risky credit card. Just visit the website cashberry.vn or download the CashBerry app on CH Play, you have an instant loan of up to 10,000,000 VND within 24 hours.
In particular, you will not need to prove your income, check the household registration. Much simpler when registering documents and taking a photo of ID card/CCCD, the loan approval procedure has been completed.
If you still have questions, please leave a question on CashBerry fanpage and receive the fastest answer!