Brief of the case

    Things have to start from 2008, Li Mou's "iron brother" Chen Mou needs to apply for a loan to a bank because of capital turnover, a bank requires Chen mou to provide a guarantee, Chen Mou then found Li mou, request its guarantor. Out of trust and support for friends, Li Mou should readily respond to this matter. 

    On February 23, 2009, Chen Mou signed a loan contract with a bank, agreeing to borrow 100,000 yuan, and repay the principal and interest after the expiration of May 19, 2009. On the same day, Li Mou signed the "guarantee contract", promising to voluntarily provide a guarantee for the above-mentioned loans of Chen Mou, the guarantee method is joint and several liability guarantee, and the guarantee period is two years from the date on which the debtor performs the debt. After the contract was signed, a bank issued a loan of 100,000 yuan to the borrower Chen.

    After the expiration of the contract, Chen did not fulfill the repayment obligation as agreed in the contract, and a bank reported the bad information that Li did not pay off the loan guaranteed to the credit information center of the People's Bank of China without claiming the guarantee responsibility to Li. Because the loan has not yet been paid off, Li's bad credit records have been in existence for as long as 15 years. 

    After the incident, Li Mou repeatedly communicated with a bank and asked for the elimination of bad credit records, but a bank refused on the grounds that the loans involved in the case had not been paid off and the bad behavior had continued. In desperation, Li Mou appealed to the court and asked a bank to eliminate its bad credit records and restore its reputation.

Court hearing

    The court held that according to Article 693 of the Civil Code of the People's Republic of China: "Where the creditor of the joint and several liability guarantee fails to request the guarantor to assume the guarantee liability during the guarantee period, the guarantor shall no longer assume the guarantee liability." A bank did not claim guarantee liability to Li mou during the guarantee period, although the loan has not yet been repaid, but Li Mou's guarantee liability has been discharged. According to Article 16 of the Regulations on the Administration of the Credit Investigation Industry of The State Council, "the retention period of the bad information of the credit investigation institutions shall be 5 years from the date of the termination of the bad behavior or incident; If it exceeds five years, it should be deleted." According to the agreement of the Guarantee Contract, the guarantee period of Li Mou has expired on May 18, 2011, and it has been more than 13 years so far, and Li Mou's bad credit records still exist, which does not meet the provisions of Article 16 of the Regulations of The State Council on the Management of the credit investigation Industry, and should be eliminated in time.

     In summary, the court ordered a bank to truthfully provide information to the credit investigation center of the People's Bank of China in accordance with the law, eliminate Li's bad credit investigation records, and restore Li's reputation. After the first instance judgment, neither party appealed, and the judgment has come into effect.

Judge's statement

    Credit records are an important identity of individuals in the financial market, which directly affects loans, employment and other aspects, so it is very important to protect personal credit records. In the face of the guarantee request of others, it is necessary to comprehensively consider the integrity and economic ability of the borrower, think twice before acting, and do not blindly provide guarantees for others due to loyalty and goodwill, so as not to bring unnecessary economic losses to themselves. As an important provider of personal credit information, banks and other financial institutions shall strictly abide by relevant laws and regulations, submit credit information truthfully, accurately and timely, and avoid infringing on the rights and interests of others due to information errors, causing conflicts and disputes. If the other party's losses are caused, they shall also bear the corresponding compensation liability.

    This article is transferred from the "Shandong High Law" wechat public number, thank you!