I am not having any SBI debit card but daily I am receiving message to pay an amount of rs10372.54for last few years. I had written several mails to concerned AGMMumbai regarding the same and as per his message it was forwarded for na.Still I am receiving sms to pay the above said amount.I had even complained in the sbicard chargeback.com site regarding the same dozen times but in vain.I am not getting any proper reply except the standard ones. Even the name is not correct{bearing someone else name} and also I do not have the card no which I mentioned in every communication to SBI. Pl advise what option is left for me. I had also visited SBI regarding the same but they said contact SBI card section.

Ans: First, I empathize with the frustration you're experiencing. It can be distressing to deal with unexpected charges, especially when they can impact your credit score. You’re not alone in this; many people face similar issues with credit card companies. Here’s a step-by-step approach to resolving this situation.

Steps to Resolve the Issue
1. Gather Documentation

Collect all the communication you have received from SBI Cards. This includes emails, SMS messages, and any written correspondence. Also, have a record of your cancellation request and their responses.

2. Contact Customer Service

Contact SBI Cards customer service once more. Explain the situation clearly and provide all the details. Ask them to escalate your issue to a higher authority or the grievance redressal department.

3. Write a Formal Complaint

If the phone call doesn't resolve your issue, write a formal complaint. Address it to the grievance redressal officer of SBI Cards. Include:

Your card details (without sharing sensitive information like the full card number)
The timeline of events
The fact that you were promised a fee waiver
Copies of any relevant communication
A clear request for the fee and penalties to be reversed
Send this complaint via email and registered post to ensure it is received and documented.

4. Approach the Banking Ombudsman

If SBI Cards does not resolve your issue within 30 days, you can escalate the matter to the Banking Ombudsman. The Ombudsman is a quasi-judicial authority set up to resolve customer complaints against banks. To file a complaint with the Ombudsman:

Visit the RBI Banking Ombudsman website.
Select the appropriate jurisdiction.
Fill out the online complaint form, including all details and attaching your documentation.
5. Check Your Credit Report

Regularly monitor your credit report. You can get a free credit report once a year from each of the credit bureaus (CIBIL, Equifax, Experian, CRIF High Mark). Check if the disputed amount has affected your score.

6. Legal Advice

If the issue persists, consider seeking legal advice. A lawyer specializing in consumer rights can guide you on the next steps and potentially send a legal notice to SBI Cards.

Preventive Measures for the Future
1. Cancel Unused Cards Properly

Always ensure that you receive a confirmation of cancellation in writing. Keep a record of this confirmation for future reference.

2. Monitor Your Accounts

Regularly check your credit card statements and accounts, even for cards you don’t frequently use. This helps you catch any unexpected charges early.

3. Understand Terms and Conditions

Before accepting any credit card or service, carefully read and understand the terms and conditions, especially regarding fees and renewal charges.

Final Insights
Dealing with credit card companies can sometimes be challenging. However, by following a systematic approach, documenting all communications, and escalating issues when necessary, you can resolve such disputes. It’s crucial to act promptly to prevent any negative impact on your credit score. Stay persistent and assertive in your communications with SBI Cards, and don't hesitate to escalate the matter if you don't receive a satisfactory resolution.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

Ans: Mr. Sam. I appreciate that you took action to pay your outstanding credit card dues. Let’s address your concern step-by-step and analyse the potential penalties and interest charges you might face for the delayed payment.

Understanding Credit Card Late Payment Charges
Since your credit card due date was on 31.10.2024, and you made the payment on 04.11.2024, there is a delay of 4 days.

Most credit card companies, including SBI, charge a late payment fee if payments are not made on or before the due date. Additionally, interest charges are applied on the outstanding amount.

The fees and interest can add up quickly, especially if the outstanding amount is significant, like your balance of Rs 48,000.

Let’s break down the potential charges you could face and how they are typically calculated.

Late Payment Fee
Credit card companies usually charge a fixed late payment fee based on the outstanding balance.

For an outstanding balance like yours (Rs 48,000), the late payment fee can range between Rs 750 to Rs 1,300.

The fee depends on the bank's specific policies, so you may want to check your credit card terms or contact customer service for the exact amount.

Interest Charges on Outstanding Dues
Credit card interest rates can be quite high, typically ranging from 3% to 4% per month, which translates to an annual rate of 36% to 48%.

Since you missed the due date, the interest will be charged on the full amount of Rs 48,000 from the billing date, not just the delayed period.

Additionally, interest will also be charged on any new purchases made until the payment is fully cleared. This is known as the revolving credit interest.

Potential GST Charges
In addition to late payment fees and interest, GST (Goods and Services Tax) of 18% is applied on both the late fee and the interest charges.

This means that your overall charges will increase slightly due to this additional tax.

Summary of Expected Charges
Late Payment Fee: Approximately Rs 750 to Rs 1,300 based on your outstanding balance.

Interest Charges: Calculated on the outstanding amount of Rs 48,000 at a rate of 3% to 4% per month.

GST: An additional 18% on the total of late fee and interest.

Immediate Actions to Minimise Future Charges
Pay Off Dues Quickly: If possible, try to pay off any remaining balance immediately to stop further interest accumulation.

Contact the Bank: It may be worth calling the SBI customer service and explaining your situation. Sometimes, banks waive late fees for customers with a good payment history.

Set Up Auto-Debit Facility: To avoid missing payments in the future, set up an auto-debit from your bank account for at least the minimum due amount.

Monitor Your Statements: Regularly check your credit card statements to avoid any surprise charges. It’s crucial to stay on top of payments, especially during festive or busy periods.

Long-Term Strategies to Avoid Debt Trap
Credit cards are convenient but can lead to debt if not managed carefully. Here are some suggestions:

Clear Dues in Full: Always aim to clear the total due amount by the due date. Paying only the minimum due will result in accumulating interest on the remaining balance.

Avoid Making New Purchases on Credit: Until you clear your dues, try to avoid using your credit card for new purchases to prevent additional interest.

Emergency Fund: If possible, build a small emergency fund to handle unexpected expenses. This way, you won't have to rely on credit cards.

Use Debit Cards for Everyday Expenses: To reduce your dependency on credit, use a debit card for regular purchases. This will help you manage your expenses better.

Some Final Insights
Credit card debt can quickly spiral out of control if not managed properly. The key is to act promptly and clear your dues to avoid paying hefty fees.

Late fees, interest, and GST charges can add up, making it essential to pay attention to due dates. Even a few days' delay can be costly.

By taking proactive measures and maintaining discipline in payments, you can avoid future charges and keep your finances in good health.

If you are struggling with managing debt or financial planning, consider consulting a Certified Financial Planner to guide you towards better financial management.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ans: Hello;

Please file FIR with cyber cell(helpline no. 1930)/local Police immediately.

Inform RBI and SBI about the fraud and seek help for refund.

Please be vey careful and cautious.

Never share your personal details, OTP etc on public platforms and phone calls/messages.

Best wishes;