Not paying credit card debt is going to jail according to Vietnamese law?
“Hi Lawyer, my son has opened a credit card. Recently, I saw the bank call my son several times asking to pay off his credit card. But my son deliberately did not pay. I have advised him many times to pay the debt to the bank, but he did not listen. and I am very worried. I wonder if my son won’t go to jail if he doesn’t pay his credit card debt? Ask a lawyer to help me answer. Thank you Lawyer.“. Thank you for submitting your question to us. Today, LSX Lawfirm will give you an article about “Not paying credit card debt is going to jail according to Vietnamese law?“, as follows:
Legal grounds
Penal Code 2015 Amendments and Supplements 2017
Circular 19/2016/NHNN
What is a credit card?
According to Clause 3, Article 3 of Circular 19/2016/NHNN:
“Credit card is a card that allows the cardholder to make card transactions within the granted credit limit as agreed with the card issuer.”
Simply put, a credit card is a card that allows you to make purchases first and pay the bank later. You can use your credit card to buy goods online, pay for goods and services at stores, agents, restaurants, and hotels that accept credit cards, or withdraw money. cash from the ATM and return it after a certain period of time.
In short, when opening a credit card, the card-issuing bank will grant the customer a certain limit called a credit limit. This limit is based on certain criteria. Customers will be able to lend money within this credit limit to spend in advance; then pay back to the bank the entire loan or monthly installments.
Why use a credit card?
There are many benefits to owning a credit card, as long as you use it responsibly. With a credit card, you can:
- 1. Split large payments in installments
Want to book a ticket for a vacation or buy new furniture? With a credit card, you can make purchases first, then pay in installments over the next few months.
- 2. Build your personal credit rating
The bank doesn’t know how well you can repay your loan if you don’t have a credit history. Credit cards help you build a personal credit history through the payment history of monthly card balances. If you have a good credit history, this can prove you can afford it in case you apply for larger loans, such as a home loan.
- 3. Ready for an emergency
Credit cards can help cover unexpected expenses. In addition, credit cards also bring many promotions, discounts, installments, reward points, or cashback to card users. Currently, HSBC Credit Card is offering discounts of up to 40% when shopping for food, entertainment, travel, and beauty.
What is the penalty for not paying the credit card by the due date?
Must pay penalty interest
According to Clause 2, Article 17 of Circular 19/2016/NHNN:
When using a credit card, the cardholder must use the money for the right purpose and make full payment; on time to the card issuer the loans and interest arising from the use of the card under the contract signed with the card issuer.
Banks will have different lengths of interest-free periods; including the interest-free period between two payment cycles and the grace period (which is a further extension by the bank to facilitate customers to pay off the bank’s advance for spending). If the customer does not pay the entire loan (in installments) within this period, the customer will have to pay additional interest to the bank.
Bad credit on CIC Credit System
If the customer is late to pay by the due date, bad debt will be debited on the CIC Credit System
Banks; credit institutions will provide CIC with information about loans; borrowers’ names; borrowing institutions and their repayment process. Then, CIC will aggregate them into a unified database that reflects the credit history of each individual/business.
Before granting credit to any customer, credit institutions will look up that customer’s information on CIC to see if there is bad debt. Based on the information provided by CIC, credit institutions will decide whether to lend to that customer or not.
Being bothered by the bank, asking for debt
The bank will take various measures such as texting; calling; send tomorrow to remind customers to pay debts for late payment cases.
If there is no exchange between the two parties, after a period of time, the bank will lock or close the card account to avoid new spending. In the worst case, the customer may even be sued by the bank to get a refund.
Do not pay credit card debt and go to jail?
Bank case; or the party receiving the right to process the loan with late payment contacts the customer many times but the customer intentionally avoids it; If the bank does not have goodwill to cooperate, the bank has the right to sue those customers for the crime of Abuse of trust to appropriate assets under Article 175 of the Penal Code 2015 amended and supplemented 2017.
Penalty range:
- Firstly, A non-custodial reform for up to 3 years or a prison term of between 6 months and 3 years if appropriating an amount of between VND 4,000,000 and under 50,000,000 or under VND 4,000,000 but have been administratively sanctioned for an administrative violation. this offense or has been convicted of crimes of infringing upon property rights but has not yet been expunged.
- Secondly, A prison term of between 02 – 07 years for acts of appropriating an amount of between VND 50,000,000 and under 200,000,000;
- Thirdly, A prison term of between 5 and 12 years for acts of appropriating an amount of between VND 200,000,000 and under 500,000,000;
- Finally, A prison term of 12-20 years for appropriating an amount of VND 500,000,000 or more.
Problem-solving
If in the process of using the card, the customer is insolvent or deliberately does not pay for a long time, even though the bank has applied incentives and reminders to repay the debt many times. At this time, the bank can completely send the file to the court to initiate a lawsuit. Therefore, not paying credit card debt can go to jail if the customer intentionally does not pay the loan spent. The level of penalty will depend on each case of violation of the customer.
Consulting service of LSX Lawfirm
Above is LSX Lawfirm’s advice on the content of the problem “Not paying credit card debt is going to jail according to Vietnamese law?“. And all the above knowledge to use in work and life. If you have any questions and need more advice and help, please contact the hotline for the reception. Lawyer X is a place that provides reputable and fast business services at reasonable prices. Customers will be extremely satisfied when using our services.
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Related questions
Overdraft is a term used to refer to loans that exceed the actual amount of money in the customer’s account. That is, the bank will allow you to spend more money than you currently have in your account. Which, depending on the reliability of each customer, the bank will grant that customer a maximum limit. In this case, the customer can overspend even if the balance in the account is only 0. The amount of interest will be calculated according to the overspent amount.
A bank account statement is a detailed copy of transactions arising from the payment account of an individual or organization. These transactions include all credit transactions in and out of the account. Statements are made only at the request of the account holder. The content of the statement includes information such as:
Expenditures
Pay bills
Cash advance
Interest
Monthly fee,…
Unsecured loans are loans without collateral; to rely entirely on an individual’s creditworthiness for his or her ability to repay debt for personal purposes, be it an expense for a wedding, travel, or purchase of consumables, and very convenient loans to cater to all individual needs.
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