The court eventually recognized the validity of both parties' contract and upheld the original verdict in the final trial. It also pointed out that Xiao Rong had indeed benefited from the financial services provided by Bank of Beijing, and objectively had already gained actual benefits; therefore, he should reasonably repay the corresponding fees to Bank of Beijing.
In response, Xiao Rong claimed to be intellectually disabled. His uncle applied to the court during the case proceedings, requesting a declaration that Xiao Rong was a person with limited legal capacity. The Beijing Anding Hospital, affiliated with Capital Medical University, specifically assessed Xiao Rong's civil capacity. The conclusion was that Xiao Rong suffered from moderate mental retardation and should be rated as having limited civil capacity. On November 25, 2010, after a judgment by the Xicheng District Court, Xiao Rong was declared to have limited civil capacity.
The court found that Xiao Rong's mother was aware of the fact that Xiao Rong held a credit card and used it for consumption, and she repaid the credit card debt on his behalf every month. For this reason, the court believed there were reasonable grounds to consider that Xiao Rong's legal representative (his mother) had post-facto approved Xiao Rong's actions of applying for and using the credit card, thus making the contract effective.
In response, the bank argued that Xiao Rong had a stable income source and met the conditions for obtaining a credit card, stating "the level of income does not affect the application for a card," and that during the card issuance review process, they were unaware that Xiao Rong had limited civil capacity. They had fulfilled their necessary review obligations.
Xiao Rong, born in 1978 under a pseudonym, is a cleaner at a community service center in Xicheng District. In December 2011, Bank of Beijing sued him at the Xicheng District Court. The bank claimed that in September 2008, Xiao Rong applied for a credit card, incurred debts after receiving the card, and despite repeated urging, failed to repay. Therefore, they requested a judgment ordering him to repay the outstanding credit card balance of 14,303.28 yuan as of June 28, 2011, along with interest of 3,119.03 yuan, late fees of 10,996.57 yuan, etc.
After the first-instance verdict was announced, Xiao Rong appealed, claiming "my salary account is with Bank of Beijing, and my monthly salary is only a few hundred yuan. Bank of Beijing is aware of this. The bank knew that the income was insufficient for repayment and did not meet the card issuance conditions but still issued the card."
After being evaluated as having limited civil capacity,
His mother was aware of her son's use of the credit card for consumption.
Share to: Comments welcome, please comment
According to reports (by reporter Zhang Yuan), a cleaner with a monthly income of just a few hundred yuan obtained a Bank of Beijing credit card and was sued in court after accumulating nearly 30,000 yuan in arrears including principal and various fees. Although the cleaner was identified as intellectually disabled, the First Intermediate People's Court recently made a final ruling that the credit card was valid and the debt should be repaid.
The first-instance court recognized Bank of Beijing's claims and ruled that Xiao Rong should repay the nearly 30,000 yuan in fees, as well as interest, late fees, and other charges until the debt is fully settled. (Editor: SN021)