Credit card maturity – an illegal activity!

11/30/2024

Nowadays, credit cards are widely used, the demand for using cards is increasing, and the service of “card maturity” is also quite popular. However, credit card maturity is an illegal activity. Be careful!

What is credit card maturity?
Credit card maturity is a service in which the cardholder borrows money to pay off credit card debt from a third party when the credit card payment deadline comes and they do not have enough financial capacity. The service provider will deposit money into the account to pay off the customer's credit balance. Then, the service provider will continue to swipe the card through the POS machine to get back the newly deposited amount right after the bank re-issues the credit limit to the cardholder in the next statement period. Debt collection is carried out in the form of purchasing goods (but not actually purchasing goods).
Potential risks

Legal risks: In essence, credit card maturity is a form of hot loans, carried out by individuals and unofficial organizations. Withdrawing money after being granted a new limit is providing fake service bills to the bank, because the customer does not buy anything but only uses the cash withdrawal service. These are invalid transactions and are prohibited by the bank. Participating in fake transactions can lead to serious legal problems, including criminal prosecution.
Risk of personal information disclosure: Service providers may retain the credit card until the card is swiped to withdraw money and collect fees or require the cardholder to send information related to the credit card such as CVV/CVC security code , card number, ID card/CCCD photo, OTP code sent to phone number, etc. This is important information that needs to be kept confidential and should not be shared with anyone. Bad guys can take advantage of this data for bad purposes, especially using it in online payment transactions to steal the cardholder's assets.
Card is locked and cardholder's credit score is lowered: If using credit card expiration service too much and continuously, the bank will warn of suspicious transactions and the card may be temporarily locked or spending limited for monitoring. The cardholder's credit score will be affected and it will be difficult for future financial activities in the entire banking system.

3. Recommendations from VPBank

Any form of fraud or illegal use of credit cards will be strictly handled according to the law and the bank's regulations. Therefore, VPBank recommends:

Use credit cards wisely : Plan your spending wisely and take advantage of the card's many benefits.
Pay on time : Make sure to pay your credit card debts in full and on time to avoid incurring high interest rates and affecting your credit score.
Use official banking services : VPBank has many products and features to support customers with urgent financial needs: Unsecured loans, Overdraft loans, Installment payments for credit card expenses with attractive interest rates, etc. Avoid using illegal services and unclear transactions.
Contact the bank when having financial difficulties : If you have problems with payment, contact the bank for support and find a reasonable solution to avoid falling into bad debt.