Credit card bad debts are accounts receivable due to the failure to settle accounts in time, and also refer to the finance that cannot be collected because the other party fails to pay them back. Simply put, it is an account that has not been paid off for a long time. So what does it mean to write off bad debts of credit cards? That is, the cardholder and his own credit card bad debts, so as not to affect the subsequent loans. Write-off of bad debts of credit cards requires cardholders to write off their debts themselves, pay off their debts according to regulations, and eliminate their bad records. What does it mean to write off bad debts of credit cards?

1. Cancellation of credit cards after bad debts is a way for banks to handle uncollectible debts, which has been recorded as bad personal credit information.

First of all, this is the bank's own behavior. Because the cardholder's debts are not paid back for a long time, the bank regards this customer as its own non-performing assets, but the write-off of bad credit card debts does not mean that you don't owe the bank money; After the cardholder's credit card is cancelled, he still needs to fulfill the repayment obligation. If he doesn't pay back for a long time, your personal credit report will be seriously tarnished. It's fantastic for you to have business sources with the bank again. Because bad debts are a serious state of credit cards, they are generally formed because overdraft credit cards are not returned for a long time.

3. Secondly, it should be reminded that the failure to solve bad debts is basically insulated from bank finance such as loans and credit cards. Personal credit report has this record for a lifetime, so once it is found, it must be disposed of in time. The most basic treatment is to pay off the arrears and pay all the fees. Although there are still five years overdue records in the personal credit report after paying off the debt, all the bad records before five years will disappear. At this time, you can continue to do business with the bank.

How to handle the write-off of bad debts of credit cards

1. Adopt an independent write-off policy.

Considering the characteristics of credit card business, a special write-off policy is issued separately for credit cards. In accordance with the idea of "strengthening supervision, internal control and independent write-off", under the premise of strengthening the supervision of external industries such as China Banking Regulatory Commission and banking association and strengthening the internal control management of write-off banks, the card-issuing banks that meet the regulatory requirements are authorized to write off independently.

2. Reduce the threshold for write-off of bad debts.

Considering the high risk of credit card business and short loan cycle, the write-off policy is different from the "strict write-off" principle of conventional loans, which lowers the threshold for credit card write-off.

3. Clarify the conditions for bad debt write-off.

First, the specious condition of determining bad debts "after taking all possible measures and implementing necessary procedures" was cancelled, and it was directly expressed as "bank card overdraft that meets one of the following conditions can be identified as bad debts", that is, it can be identified as bad debts if it meets one of the ten write-off conditions listed. Second, cancel the limit on the amount of recourse for write-off, and those with more than 20,000 yuan that meet the requirements can also be written off, effectively preventing such accounts from filing a lawsuit just to get a write-off certificate, wasting business costs and improving the efficiency of write-off. The third is to shorten the suspected fraud category "after being investigated by the public security 1 day or more" to "more than three months after being investigated by the public security" and to shorten the pursuit category "after being pursued 1 day or more" to "after being pursued 180 days or more".

4. Simplify account write-off procedures.

First, under the policy of "independent write-off", the traditional write-off mode of step-by-step declaration and step-by-step approval is changed, and a centralized write-off mode is adopted to reduce the number of write-off links. The second is to simplify the credit card declaration verification materials, keep the declaration summary table and creditor's rights certification materials, and do not need to submit investigation reports and declaration forms. Third, small overdraft bad debts are packaged for write-off, which reduces write-off costs and improves write-off efficiency.

5. Determine the provision standard for bad debts.

After analyzing and judging the credit card assets, according to the results of non-performing loans classification and internal losses, and considering the profitability and asset quality of the business comprehensively, the reasonable bad debt provision standard is determined to truly reflect the operating results of the credit card business, improve the anti-risk ability of the credit card business and further expand the business scale.

6. Solve the problem of external evidence collection

In addition to recourse to write-off materials, other types of write-off materials involve external functional departments, which are often unwilling to issue them on the grounds of not providing responsibility, and write-off banks are often unable to obtain relevant certification materials. Therefore, the credit card write-off policy should consider the actual situation and make clear some more operable write-off materials.