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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