Research On The Guarantor’s Liability In The Case Of Cardholder Malicious Overdraft

With the progress of science and technology as well as the development of financialbusiness, the credit card business is growing rapidly in our country. But there are also manyproblems behind the rapid development. For example, a reliable credit system has not yetbeen established, and laws relating to credit card are not sound enough. All of them seriouslyhinder the development of credit card industry in China. In recent years an increasing numberof guarantee disputes of credit card make a lot of people afraid to apply for a credit card. Thisarticle will analysis the liability of guarantor in the case of cardholder malicious overdraft.This article will use the method of theory with practice to analysis whether the guarantorshould take responsibility and the range of responsibility on the basis of collecting cases,referring to books and papers.The first part is“the cause of action”. Zhejiang Tailong Commercial Bank Lishui Branchv. Zheng Haixiong credit card disputesThe second part is “the case description”. In this part, the article will introduce the caseand the parties of the case,and then introduce the verdict.The third part is“the focuses of controversy and disagreements between the parties”. Inthis part, the article will introduce the focuses of controversy. There are two focuses ofcontroversy between parties. The first one is the validity of credit card contract. The secondone is whether the contract is maximum amount of guarantee or not.The fourth part is “the theoretical study of the dispute in this case”. This part is the coreof the article. The credit card contract that cardholder malicious overdraft is an avoidance ofcontract. Guarantee contract of credit card has the nature of the maximum amount ofguarantee signed by the card issuer and guarantor. In this part, the article will firstly introducethe basic knowledge of credit card, the concept of malicious overdraft, and then analysis thefirst focus of the debate between parties. Analysis will be from four aspects in this case, andcome to the conclusion that credit card contract is an avoidance of contract. From threeaspects to analysis the second focus of the dispute in this case, then come to the conclusionthat guarantee contract of credit card has the nature of the maximum amount of guarantee.