ALL THE INFORMATION HERE IS ONLY A COMPILATION FROM INTERNET TO HELP A CREDIT CARD VICTIM AND PROVIDE HIM WITH INFORMATION AND KNOWLEDGE TO EMPOWER HIM OR HER TO PROTECT HIM/HER FROM Credit Card Fraud
Credit Card Fraud - A review
The phrase, "Credit Card Fraud" was created and used in a biased manner, till date. If an unauthorized person uses a card or a person who used the card fails to repay the amount, it's called 'Credit Card Fraud'. By doing so, Credit Card Operators reinforcing a notion in our minds that, "the Credit Card Operators are always right; only the users are defaulters"
But, if we check whether these Credit Card Operators perform their duties in a genuine or lawful manner, the result is very disappointing. These Credit Card Operators (especially foreign and private companies) indulged in arm twisting practices right from marketing to debt collection.
The Reserve Bank of India vide its Master Circular on Credit Card Operations of banks (RBI/2006-07/12 DBOD.FSD.BC. 10/24.01.011/ 2006-07), laid clear regulations for the Credit Card Operators and their Direct Marketing/Sales/Collection Agents regarding fair practice during all activities such as marketing and debt collection.
According to that circular, all the Credit Card issuing banks/NBFCs' should adhere to those guidelines strictly.But, it is very obvious that, no private/foreign banks does adhere those guidelines.
Instead, the Credit Card Operators expects their customers must follow the unjust, unethical, and legally void-able rules and regulations laid by the banks unilaterally.
It is very clear that these Credit Card Operators (especially foreign / private organizations) wants their customers should be indebted to these banks for their entire life. By doing this, these Credit Card Operators can suck the life of middle class Indians to the core.
Regarding this unjust attitude of Credit Card Operators, Union/State Governments and even the Reserve Bank of India adopts "Keep silence attitude". It's a great injustice for the people of Indian Republic and great insult for the ideals of the Constitutional Law of India.
For safer online transactions - Share this
For safer online transactions
* Use a secure web browser, look for an ‘s’ after the ‘http’ in the web page address.
* Keep your password secret.
* Never send payment information via email.
* Reputable merchant sites use encryption technologies to protect private data from being accessed by others during a transaction.
* Monitor your monthly statements, especially after an overseas trip.
* Check transactions, even the small ones, because criminals test stolen accounts by buying inexpensive items.
* Investigate suspicious activity to prevent fraud
* Notify your financial institution of suspicious email activity.
* Only open and respond to emails that are from somebody you know.
http://www.nd.com/resources/smartsoft.html
Here is a step by step guide on how Finance Charges are calculated.
· AAssume you have Zero balance on your card to begin with.
· You now make a Biz Bazaar household purchases worth Rs 15,000 on April-10th. Then on 18th April you buy a Mobile Phone worth Rs 5,000. Lets say your billing cycle ends on the 18th of every month. So your April-18th credit card statement lists Total Dues as Rs 20,000 and Minimum Payment of Rs 1,000.
· Due Date for making entire payment or at least minimum payment is May-2nd.
· Lets assume you miss the May-2nd deadline. This is very bad to your credit history. Creditors think you don't even have the money to make minimum payment. Missing Minimum Payment will attract you additional fees known as Late Payment Fees.
· If you make minimum payment by May-2nd then their is no Late Fees in your next credit card bill.
· Assume you have not made a minimum payment by May-2nd and on 12th May you pay Rs 2,000.
· You purchase groceries worth Rs 1,000 on May-14th.
· On May-15th you make a payment of Rs 15,000
· Thus on your May18th Bill you will see the following,
1. Late Payment Fees of Rs 350
2. Interest on Rs 15,000 @ 2.95% pm [whatever your APR is] from 18th April to 12th May.
3. Interest on Rs 13,000 @ 2.95% pm from 13th May to 15th May
4. Interest on Rs 5,000 @ 2.95% pm from 18th April to 15th May
5. Interest on Rs 3,000 @ 2.95% pm from 16th May to 18th May
6. Interest on Rs 1,000[Fresh Purchase] @ 2.95% from 14th May to 18th May
Add Service Tax on Late Payment Fees + Interest.
Total outstanding = Rs 4,000 [Rs 3,000 from Previous Bill and Rs 1,000 Fresh Purchase] + Service Tax+ Late Fees + Interest = Rs 5,000 say.
Thus you are un-necessarily paying a hefty fees of Rs 1,000 to credit Card company on just Rs 4,000 outstanding balance.
Always pay at least minimum fees by due date. Still better, pay off the entire debt vy due date to avoid any FEES!!!!
Web Details—Share this info to all
http://creditcardvictims.org/page/eng
http://www.youtube.com/watch?v=sexUus0igWs [ SEE IT TO BELIEVE IT]
https://reservebank.org.in/compltindex.htm
http://www.online.citibank.co.in/
http://www.core.nic.in
head.customercare@citigroup.com
http://www.americanexpress.com/india/personal/Cards/apply/default.shtml
http://www.americanexpress.com/india/customerservice/contactamex_phone.shtml
http://www.abnamro.co.in/AboutUs/branchLocations.html
http://www.abnamro.co.in/grievance_redressal.html
headcardservices@in.abnamro.com,
http://www.sbicard.com/sbi/mitc.jsp
http://www.icicibank.com/pfsuser/services/contactus.htm
Interest Rate -
Most of the problems arise from the exorbitant interest rates charged by the Credit Card Operators. In developed countries like America, these Credit Card Operators are charging only 6% to 18% per annum for most of the Credit Card customers. But in developing countries like India, these Credit Card Operators used to charge 36% interest per annum and many other charges in various names.
In the nationalised banks, Andhra Bank charges 23.14% per annum (1.75% per month), Bank of India charges 22.44% per annum (1.7% per month), Bank of Baroda charges 23.88 per annum (1.99% per month) and Union Bank of India charges 20.40% per annum for their Credit Card customers.
When comparing with the foreign/private banks, these nationalised banks's charges looks reasonable regarding the interest rates. But at the same time, some big banks are charging high interest from their Credit Card customers on par with foreign/private banks. By doing so, these banks are looting the citizens of India in a gross manner.
Comparing these interest charges against the interest rates on retail loan products like car loan (7%) / housing loans (9%) / personal loans (14%), and one can realise the fact that the banks pay meager interests only to their depositors. As there is no body / authority / legislation to regulate these Credit Card Operators, they are sucking the life of Indian Citizens. The Finance Ministry and the Law Ministry are very cautious in not to intervene in these issues.
Mera Bharat Mahan ! - Share this info to all.
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