Have you ever been overcharged by credit card companies? Do you always tend to misuse your credit cards?
Do you possess more than one card and don't know how to make the best use of both? If you have run into huge credit card debts, should you go for a balance transfer or pay up the debt by taking a personal loan?
How can you fight credit card woes?
Personal finance expert
Harsh Vardhan Roongta answered many such queries during an hour-long chat on
rediff.com on Thursday. Here is the transcript:
Harsh Roongta says, Hello Eveeryone. Must apologise for the small delay in starting which was due to "technical reasons". So let's get started.
neha asked, i paid my credit card payment i have closed it also and i got the message saying that it has been closed but still the credit people are adding the interest for it ?
Harsh Roongta answers, at 2007-06-21 15:03:59If you have written proof or a reference number based on which you can prove that the credit card has been closed by the bank then they obviously cannot charge anything after the date of closure. You should officially write a complaint on the bank's website and get a reference number. Give as much as detail about your complaint as you have. If the matter is not sorted out to your satisfaction within 2-3 weeks then file a complaint with the banking ombudsman. Details on www.rbi.org.in
Pravin asked, I have 3 credit cards of different banks how could i effectively use all these cards?
Harsh Roongta answers, I think you should concentrate on using your card only for planned expenses rather than trying to plan an optimum usage of the 3 cards. apnaloan.com has consistently recommended that a lay consumer should not try to juggle with financial committmenmts by doing balance transfer between cards. It is a cumbersome and time consuming process and a single delay means penalty and interest costs which will more than wipe out any interest benefit that you hope to enjoy by doing balance transfers.
neha asked, can the credit people have any authorization to draw the money from saving bank account without our knowledge if the payment is due for ex i have taken the card from icci bank and the loan is also saving bank account is also icci can they draw money like that ? Is it possible
Harsh Roongta answers, Yes ICICI Bank Credit Card has full authority to adjust any monies due to you from them against any due by you to them This is allowed as per international custom (called banker's lien) and is anyway also provided for in the card members agreement as well as the savings bank term and conditions that you signed with them when you started both these relationships.
Pravin asked, Is there any regulatary body which can give justice to credit card holders?
Harsh Roongta answers, If the credit card is issued by a bank (except for SBI card which is issued by an NBFC - most major cards are indeed issued by a bank) then a very effective authorty is the banking ombudsman.Details on www.rbi.org.in Before you file a complaint with them however you will need proof that you have filed a complaint with the bank at least 2-3 weeks before filing a complaint with the ombudsman.
AMIT asked, I have a sbi card. They offered me a loan of Rs.25000 @ 9.5% and the EMI was 2292 for 1 year. Now they told me that have to pay Rs.35 to 40 for government tax with every EMI. Is there any government tax on loan.Please guide me.
Harsh Roongta answers, There is a service tax on the interest charged on a credit card due @ 12.36% of such interest. So breakup the EMI into interst and principal (you can use this calculator to find this out - http://www.apnaloan.com/loan-advice-india/amortisation.html ) and if the amount is 12.36% of the interst portion it is likely to be correct.
Abhinav asked, i have a an abn amro card.these guys are not sending me statement on time and they have charged me for this, they are also not reversing the charge. i wont pay for fine.what i plan is to clear my genuine dues and cut the card
Harsh Roongta answers, I suggest that you do everything with proiper formal record so that you are not reported as a defaulter to the credit bureau. If you are reported as a defaulter you will have issues getting any loans or credit cards in teh future. In fact follow the complaint procedure outlined in the answer to an earlier question and get the charge waived off fully before closing the credit card so that it does not have any impact in the future.
Hyder asked, how to use credit cards in future
Harsh Roongta answers, You should use credit cards only as a payment mechanism. Pay off your credit card dues fully at the end of the month as revolving a part of the credit card dues can be very expensive. Plan your expenditure before you sue your credit card.
Smita asked, Hello Sir..I would like to apply for my first credit card.Which bank according to you provides the better service???
Harsh Roongta answers, If there was a single answer to that question then all other banks would need to close down their credit card divisions, wouldn't they. You can use the following link to compare the faetures of various credit cards before deciding which one to go for. http://www.apnaloan.com/credit-card-india/comparators.html
Sandy asked, The cheque towards my credit card statement was presented before the due date and hence bounced. now, they are insisting that it bouced due to insufficient funds, and they are neither accepting that the cheque was presented early not returning the same. they have levied late payment charges, finance charges, etc... Please advise
Harsh Roongta answers, I think most credit card member agreements provide that you cannot deposit post dated cheques for payment of your credit card (which seems to be what you have done as per my understanding of your query). You cannot also ask the bank to present teh cheque only on a particular day. Once you deposit the cheque with the bank -even if it is much earlier than the due date- it would be well within its rights to prsent the same immdieately. So it does not matter whether the cheque bounced due to insufficient funds or due to early presentment. I sugest you pay these charges ad write it off to experience. You can use the Electronic clearing service to ensure that the debit only comes on the due date. Most credit cards allow these facility today.
prem.u asked, sir, if were to cut the card and send it back to the bank will i be asked to pay the full amount in one shot or do i have the option of paying the min due amount?
Harsh Roongta answers, You will need to clear all dues in one shot.
Amol asked, Dear Sir, I have HDFC Gold credit card. If i not using my credit card in then what will be the charges for me.
Harsh Roongta answers, nothing unless there is an annual fee
neel asked, are loans offerd on credit card by the issuing company better than the personal loans.
Harsh Roongta answers, As a general rule of the thumb they are more expensive but it depends on your profile and the bank offering the credit card and a comparative persoanl loan.
poonam asked, pls answer what i should do.they keep phoning me fr payment.i