Legal Analysis On Cases Of Credit Card Overdue Fees In China

With the rapid development of our economy, the numbers of credit card users are augmenting promptly and so are the credit card markets. Accompanied with that is the increasing trend of the conflict between the banks and their clients. Even though we have speeded up in the special legislation related to credit card, rules concerning the overdue fine of the credit card only exist in article twenty two of The Bank Card Business Management Approach issued by Bank of China in1999:issuing bank has the authority to charge any credit card user who doesn’t pay back the minimum payment and the credit card behavior five percent of the total amount respectively for the delay payment and overrun fee. As the disputes appear repeatedly, the shortage is becoming increasingly prominent, and the rule about the overdue fine is referred to as "legitimate rob" by the card users. With the specific cases, this paper initiates from the relevant theories of credit card overdue fine and explores the existing problems, trying its best to find a balanced and sound way to solve the problem between the banks and their clients.This paper will cover the specific cases based on the structure as follows:Part one, the author briefly introduces the credit card dispute between Ou yun and CMSB (China Minsheng Banking Corp.Ltd.) and draw out the focus of the case. Whether the overdue fee is rationale; the possible collide between the rules concerning the overdue fee of The Bank Card Business Management Approach and the contract law.Part two, explores the origin of the credit card overdue fee, and by qualitative analyzing the credit card overdue fee and comparing it with the traditional one, we can conclude that the essence of the fee is of the nature of contract penalty. Briefly examine the current legal system regarding overdue fine.Part three, discusses the focus and relevant legal issues of this case, and issues like the charging standard, collide between the overdue fee rule and the rules of the contract law, and whether the overdue fee rule is a sort of terms o f the king.Part four, gives some reasonable suggestions, from the aspect of the banks, the court, the legislation and the customers, to solve the problems of overdue fee, and hopefully seeks out a mechanism to settle the dispute regarding the disputes of overdue fine.