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Ramalingam

Ramalingam Kalirajan  |7592 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 12, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Asked by Anonymous - Jul 08, 2024Hindi
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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: 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
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |7592 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 04, 2024

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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: 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.

..Read more

Ramalingam

Ramalingam Kalirajan  |7592 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

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Hello Sir, I am Kumar Shashi Raj, I made a payment for my Axis bank credit card dues on 31.1.2024 from SBI internet banking, its Last date was 05.02.2024, but payment not reflected in Axis bank credit card dues nor returned to my SBI account till 14th Feb 2024, due to delay I have been charge penalty and interest, and bad effect on my CIBIL score. I raised complains to Axis Bank Credit card department and SBI. but I did not get concrete answer from them. I got a reply from Axis bank saying that UPDATE FROM AGGREGATOR THAT THERE WAS A DOWN TIME ISSUE FROM SBI, due to this the payment has been failed. I just want to know who is responsible Axis Bank or SBI and how to raise complain against them so that penalty, interest, and effect on CIBIL score, mental trauma I have borne. I want justice.
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

..Read more

Ramalingam

Ramalingam Kalirajan  |7592 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 14, 2024

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Hello Sir, I am Sam, I made a payment for my sbi credit card dues on 31.10.2024 but some festival session I missed out then today 04.11.2024 paid the outstanding what are the my interst and penalty my outstanding charges is rs.48000/-.
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

..Read more

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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