Hello A few years ago I was given an SBI credit card saying it will be free renewal. When they started levying a renewal fee I cancelled it, and they said they will cancel the charge and I can continue using it. I have a main credit card with another bank, so I haven’t used the SBI credit card at all for the last couple of years. A few weeks ago I noticed that there was a Rs 2700 levy on the SBI card, and was given a deadline to make the payment. I decided to cancel it again, but the phone executive who called me after I applied for cancellation said they will cancel this charge and if I can continue to use the credit card. Then I got a message that my request for waiver of this fee has been rejected and to pay this amount. This charge of Rs 2700 is renewal fee + late fee for not paying it + penalty, it is not for any transaction that I defaulted on. Now I have got another message from SBI Card saying if I don’t make this payment of Rs 2700, they will pass on my information to credit rating agencies for downgrading me. I have not defaulted on a payment in my life. This amount SBI Cards is claiming is not a default on my transaction, but a renewal fee they levied, and when I didn’t want to renew my card by paying it they added late fees and then penalty on the whole thing. How do I get out of this? Please help

Ans: It sounds like you're facing a frustrating situation with recurring messages about a payment for an SBI debit card that you don't have. Despite your efforts to contact the concerned parties and raise the issue through multiple channels, you haven't received a satisfactory resolution.

At this point, since you've already contacted both the AGM in Mumbai and lodged complaints through the SBI card chargeback website without success, you may want to explore additional steps to resolve the issue:

Escalate the Matter: Consider escalating your complaint within SBI's hierarchy. You can try reaching out to higher authorities or different departments within SBI, such as customer service or dispute resolution, to seek further assistance.

Legal Assistance: If the issue persists despite your efforts and continues to cause inconvenience or distress, you may consider seeking legal advice or assistance. A legal expert can provide guidance on your rights and options for resolving the matter through legal channels.

Consumer Protection Agencies: Contact consumer protection agencies or ombudsman services that deal with banking-related grievances. They may be able to intervene on your behalf and facilitate a resolution with the bank.

Credit Reporting Agencies: If the incorrect information is affecting your credit score or financial standing, you can contact credit reporting agencies to dispute any inaccuracies and request corrections to your credit report.

Document Everything: Ensure you keep records of all your communication attempts, including emails, complaint reference numbers, and any responses received. This documentation can be valuable if you need to provide evidence or pursue further action.

Ultimately, persistence and patience may be necessary as you navigate the process of resolving this issue. Keep advocating for yourself and exploring different avenues until you achieve a satisfactory outcome.

Ans: Hello Mr. Kumar Shashi Raj,

I understand the frustration and inconvenience you've faced due to the delay in your credit card payment reflecting on your Axis Bank account. It's indeed disheartening to experience such issues, especially when you've taken timely action to fulfill your financial obligations.

It's essential to determine accountability in situations like these. While Axis Bank has mentioned a downtime issue from SBI, it's crucial to delve deeper into the matter to ascertain where the responsibility lies. Both institutions play integral roles in the transaction process, and pinpointing the exact cause of the failure is essential to seek redressal.

Your proactive approach in raising complaints with both Axis Bank and SBI is commendable. However, if you haven't received satisfactory responses, you may consider escalating the matter further. You can approach the banking ombudsman, a regulatory body established to address grievances related to banking services. They can investigate the issue impartially and facilitate a resolution.

Meanwhile, to mitigate the adverse impact on your financial standing, you can request Axis Bank to waive off the penalty and interest charges, citing the delayed payment due to technical issues beyond your control. Additionally, you may inquire about any measures they can take to rectify the effect on your CIBIL score.

Remember to keep documentation of all communication and transactions related to this issue for future reference.

Stay resilient throughout this process. Justice may take time, but your persistence can lead to a favorable outcome.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: It's evident that you're dealing with a stressful situation involving multiple banks and loans. Let's break down the issues and work through potential solutions step by step.

Understanding the Situation
Loan Consolidation: You took a loan from Axis Bank to consolidate existing debts.
Pre-Closure Fees: You encountered unexpected pre-closure charges from HDFC Bank when you tried to pre-close the loan with a demand draft (DD) provided by Axis Bank.
Communication Issues: Axis Bank did not inform you about these additional charges, leading to financial stress.
Long Processing Time: The loan process with Axis Bank was lengthy and involved mistakes, adding to your distress.
Key Issues Identified
Lack of Transparency: Axis Bank did not provide clear information about the full cost of pre-closing the HDFC Bank loan.
Unexpected Charges: You had to pay additional charges at HDFC Bank for pre-closing the loan, which you were not prepared for.
Communication and Professionalism: The loan processing with Axis Bank was prolonged and marred by errors.
Steps to Address the Issues
Immediate Actions
Document Everything: Keep all the receipts, communication records, and documents related to the loan process and the additional charges you had to pay. This will be crucial for any future disputes or complaints.

Contact Axis Bank Again: Reach out to Axis Bank's customer service or your loan officer. Clearly explain the financial burden caused by the lack of transparency regarding the pre-closure charges. Request a detailed explanation and ask for compensation or a refund of the extra charges incurred due to their oversight.

Monitor Loan Pre-Closure: Since the pre-closure of the HDFC Bank loan requires 7 to 10 working days, monitor this process closely. Ensure that the pre-closure is completed, and verify that the EMI is stopped as promised. Confirm with HDFC Bank that the EMI deducted will be refunded promptly.

Long-Term Actions
Formal Complaint: If Axis Bank does not respond satisfactorily, file a formal complaint with the bank. Follow their grievance redressal process. If necessary, escalate the matter to the Banking Ombudsman for resolution.

Financial Planning: Review your financial plan to account for the unexpected charges. Adjust your budget to accommodate the new EMI payment to Axis Bank and any other financial commitments.

Consider Refinancing: Depending on the response from Axis Bank, you might want to consider refinancing the loan with another bank if better terms and transparent processes are offered. However, be cautious of any pre-closure charges from Axis Bank.

Preventing Future Issues
Detailed Loan Agreement Review: Always review loan agreements in detail before signing. Ask for a breakdown of all potential charges, including pre-closure fees, processing fees, and any other hidden costs.

Research and Compare: Before taking a loan, research different banks and compare their terms. Look for banks with a reputation for transparency and good customer service.

Seek Professional Advice: Consult with a Certified Financial Planner (CFP) before making significant financial decisions. A CFP can provide valuable insights and help you avoid potential pitfalls.

Evaluating Financial Health
Current Debt Management: Ensure that your current debt-to-income ratio is manageable. The goal is to keep your debt repayments within a reasonable percentage of your income to avoid financial strain.

Emergency Fund: Maintain an emergency fund to cover unexpected expenses. This can help you manage unforeseen charges without disrupting your financial planning.

Investment and Savings: Continue to invest and save according to your financial goals. Ensure that your investments are diversified to mitigate risk.

Final Insights
Navigating loans and consolidating debts can be complex and stressful, especially when unexpected charges and delays occur. It's crucial to maintain clear communication with your bank and stay informed about all aspects of your loan agreements. While Axis Bank's lack of transparency has caused financial stress, you can take steps to address the issue and prevent similar situations in the future. Document everything, communicate clearly with the bank, and seek professional advice when needed. With careful planning and informed decision-making, you can manage your finances effectively and work towards financial stability.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in