Study On The Legal Problems Of The Withdrawal Of Credit Card

Due to the rapid development of the market scale and business scope of credit cards, the credit card has turned into the most important non-cash payment instrument in the economic life of residents up to this day and China has also developed into a credit-card market with the greatest development potentials. Financial behaviors are obviously characterized by globalization and the financial products basically have world generality. However, the relatively common behaviors of the withdrawal of credit card in foreign countries raise doubts in the financial market of China. The debate about the social harmfulness of the withdrawal of credit card has lasted for a long time. On December 13,2009, the first item of Article 7 in The Judicial Interpretations of Some Problems of Concrete Applied Law about Handling the Criminal Cases of Impairing Credit Card Management jointly released by the Supreme People’s Court and the Supreme People’s Procuratorate stipulated, "Those who break national regulations, adopt the methods Ike POS machine and directly pay cash to credit card holders by means of fictitious transaction, virtual pricing and returns in cash will be convicted of the crime of illegal business operations and punished in accordance with the stipulation of Article 225 of Criminal Law in serious cases." Intermediary agencies who help cardholders to complete the withdrawal of credit card may constitute the crime of illegal business operations, which not only declares the illegality of the behaviors of the withdrawal of credit card in terms of national laws, but also again expands the connotation and extension of the crime of illegal business operations which has been incurring reproach with the distinctive characteristics of social system. In the history of Criminal Law of new China, the "pocket crime" with unclear connotations and boundaries has greatly impaired social order and legal sanctity. However, the crime of illegal business operations seems to keep the trend of "pocket crime" in the new period. Therefore, studying the nature and responsibilities of the withdrawal of credit card is of great significance whether from the perspective of marketing economics or from the perspective of legal sociology. The first chapter of the paper classifies and teases the concept and mode of the withdrawal of credit card and analyzes the causes of the withdrawal of credit card; the second chapter specifically argues and refutes representative opinions on the theory of harmful credit cards popular in the academic circle and practical circle, parses especially from the perspective of the price system of banks and state bank monopoly and expounds the irrationalities of classifying the withdrawal of credit card as the crime of illegal business operations. The third chapter sees the essence of the over-regulation of Chinese government on financial behaviors from the superficial phenomenon of classify ing the withdrawal of credit card as a crime and reflects on the negative impact brought by the legislation thought of the centralism of financial institutions on market freedom and economic development. The logic of argument of the paper emphasizes that the economic reasons of the withdrawal of credit card are attributed to unreasonable price system. The withdrawal of credit card is not the source of impairing the profits of banks. The unreasonable pricing system of banks could lead to relatively low profits of credit cards. Even from the perspective of maintaining the interests of banks, it does not necessarily mean that the withdrawal of credit card should not be forbidden. It is better to correct the unreasonable price system of credit cards rather than undermine the stability of legal system to ban the withdrawal of credit card by seeking for the deterrence of criminal law so as to really demonstrate the attribute of financial products which combines means of payment with asset tools and better satisfy credit card consumers’ needs for diversified financial services. By virtue of their monopoly position and the nature of ownership, stage-owned banks enjoy the special attention of judicial offices under the guidance of the legislation thought of the centralism of financial institutions, which however damages market fairness and results in the disorder of the functions of criminal law due to the expansion of the influences of criminal law which inappropriately invades the field of other department laws to be adjusted. The paper attempts to probe into the essential attribute of credit cards as financial products and the deflected profit model and price system of bank cards of China and indicates that the economic phenomenon of the behaviors of the withdrawal of credit card is legal, namely the withdrawal of credit card does not impact public order and imperil public interest instead of paying much attention to whether the judicial interpretations released in 2009 are legal and reasonable or not...