Credit card interest calculation raises eyebrows, user sues bank

Updated 2017-04-06 09:00:44 chinaplus.cri.cn
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A legal program anchor has sued China Construction Bank (CCB) for unfair interest calculation.

Two Beijing branches of China Construction Bank (CCB) and its credit card center were sued recently by a Chinese TV anchor after his CCB credit card was charged an interest of 317.43 yuan () within 10 days, though he had only a debt of 69.36 yuan ().

The man, who anchors a legal program on China Central Television, spent 18,869.36 yuan with his CCB credit card within the billing cycle in March last year. Before the due date, 18,800 yuan was automatically repaid to the bank from his stipulated account, with 69.36 yuan left un-repaid because of insufficient funds.

Later, the man found an interest of over 300 yuan in his new bill. As per the bank, if a bill is not fully paid, the interest is calculated in accordance with users' total consumption amount of the month, not the outstanding portions, reports Legal Weekly.

“The interest calculation is obviously unfair. Its relative clauses shall be void clause of style. The bank shall return me the interest,” said the credit card holder.

“The key point of the case is whether relative stipulations related to the interest calculation are clauses of style,” explained the attorney of the anchor.

Calculating credit card interest based on the total bill of a month when it is not fully repaid is not unique to China but a kind of international practice, reports Legal Weekly.

“We cannot say it's absolutely illegal. It depends on the contract signed when users apply for the credit cards. In fact, not all the banks in China calculate interest in this way,” says Guo Tianyong, Director of the Banking Research Center of Central University of Finance and Economics.

The Industrial and Commercial Bank of China reportedly calculates its credit card interest based on the outstanding amounts.

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