Zhong Guo Ji Jin Bao·2025-08-02 16:11Core Viewpoint - A major state-owned bank in China, specifically Bank of China, plans to include litigation fees related to credit card delinquencies in the bills of affected credit cards starting from September 14, 2025, which has sparked significant industry discussion [2][5]. Summary by Relevant Sections Business Adjustment - The Bank of China will incorporate various litigation-related fees into the credit card bills for overdue accounts, including but not limited to litigation fees, arbitration fees, property preservation fees, travel expenses, execution fees, evaluation fees, auction fees, notarization fees, delivery fees, announcement fees, and attorney fees [5]. - These fees will be charged based on judicial or arbitration decisions, either individually or collectively, but will not accrue interest or penalties [5]. Implementation Timeline - The pilot program will first be implemented in the Changning branch of the Bank of China in Shanghai starting September 14, 2025, with adjustments in other regions beginning from October 19, 2025 [5]. Industry Reaction - The adjustment is considered unusual by many banking professionals, indicating a shift in how banks manage delinquent accounts and associated costs [5][8]. - A representative from a joint-stock bank noted that the high costs of handling non-performing loans, including legal fees, are a driving factor behind this initiative aimed at reducing costs and increasing efficiency [8]. Credit Card Delinquency Data - According to the central bank, the total amount of credit card loans overdue for more than six months reached 123.964 billion yuan in 2024, marking a year-on-year increase of 26.31%, which represents 1.43% of the total credit card receivables, an increase of 0.3 percentage points from the end of the previous year [9].