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Indusind Charged 7000 Interest

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Deal Subedar
Demondealer

my jan-feb statement was 1,17,623rs. i paid 1,14,000. thought i will pay the rest 3.6k plus watever interest in march


but to my surprice they charged me 7.2k interest on whole 1,17,623rs even though i paid 1.14l. is this how it is? or interest should only be charged on the amount i didnt pay. called cc and they are saying even if i didnt pay 1 ruppee i should pay interest on total amount

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Benevolent Benevolent
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Yes it is on whole amount usually which is bollocks. I hope RBI regulates this too and asks banks to collect interest on only pending amount.

Deal Subedar Deal Subedar
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rip my money
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Deal Cadet Deal Cadet
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That's how it has been. Along with levying interest on the whole amount, they'll leave a derogatory remark in the credit report neutral_face After paying so much should have somehow paid the remaining small amount pensive

Vanguard Vanguard
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I think the minimum amount due should be less than the Total amount due in this case and I assume that he has paid the minimum amount due. So, it shouldn't be an issue in the credit report, right? Apart from getting charged for the interest amount. 
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Helpful Helpful
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balle-balle. play stupid games, win stupid prizes.

bhai, you couldn't manage 3623 from anywhere?!

Benevolent Benevolent
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yea . could have paid that remaining using  same  credit card at minimal charge.
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Finance Mentor Finance Mentor
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So does this mean if I have 1 rs pending, I will be charged on the full statement dues.

Critic Critic
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Yes it will be on entire amt, see the below calculation from the same timeofindia article you posted.

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Post Tycoon Post Tycoon
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contact customer care and tell will compliant to rbi and so on with procuring minimum due payment details they will reduce the intrest charged

Generous Generous
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Talk to customer care they will partially waveoff charges. I have done it several times in past

Deal Subedar Deal Subedar
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what should i even say for them to consider? u done it in indusind? or other bank cards?
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Helpful Helpful
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it is actually violation of RBI guidelines, there is a similar thread in which i yelled how these banks are violating duly quoting reference to RBI master circular guidelines
https://www.desidime.com/discussions/sbi-credit...

Critic Critic
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That RBI circular is confusing & lack clarity. This is what the "illustrative example" on SBI card MITC shows:
https://www.sbicard.com/sbi-card-en/assets/docs...

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From the rbi master circular

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Above 2 points in rbi circular are contradictory if it is assumed that paying any any amt more than min amt due means interest rate will be charged only on remaining outstanding from the due date because that makes the entire definition of "interest free credit period" irrelevant & invalid.
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Deal Newbie Deal Newbie
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There is balance transfer facility in some creditcards, which you can avail for this purpose.

Generous Generous
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Kisi se leke de te paise yaar

Yeh bahut galat ho gaya

Pehle poochna chaahiye tha forum mein

Helpful Helpful
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@Demondealer 

Cap your spending to 1 Lac soft limit the card.

This is gonna reflect in your cibil and also will reduce the score by 30 - 50 points.

Consider this a lesson and move ahead there is no point as 7k is the right math just pay it off quickly.

Helpful Helpful
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@guest_999 Even if there is any clarity missing, then the benefit shall pass on to customer not to bank, this is the judicial dictum.

Critic Critic
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I seriously doubt it because as per that same rbi master circular every credit card company/bank show the illustrative examples with detailed calculation in their MITC which clearly incl example showing interest chargeable on entire amt if total due amt not paid on/before due date. These examples are clear in their meaning unlike rbi circular which isn't even provided to cc holders officially. In case of any judicial dispute, it is the agreement/T&C between customer & company which is scrutinized in a consumer court. If rbi thinks banks are not following its circular correctly then rbi can levy fine on bank but a customer can't ask a consumer court to interpret what rbi circular means & direct rbi to levy fine on company.

Helpful Helpful
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@Demondealer

That 7.2k figure seems a bit inflated, even at an annual rate of 47.40%+LPC+GST. That figure can't be all interest charge.

If you don't mind sharing, then post a redacted statement with just the dates and txn values.

Deal Subedar Deal Subedar
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Commentator Commentator
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Interest/penalty should be charged only on the balance amount not on the full amount  as per RBI. Email customer care and if they don't agree, raise grievance to RBI.

Deal Newbie Deal Newbie
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It happened with me also in same indusind bank, I paid 80 Rs less, they charged 3600 Rs interest along with GST. After that experience, I am paying 10 or 100 extra

Wingman Wingman
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For 150rs due Axe-is charged me 590+IMG20230218001100
Deal Cadet Deal Cadet
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That's huge

Deal Cadet Deal Cadet
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As far as I know .. even if I miss 1 penny .. the interest would be incurred on total amount (not the missing amount) .. this was from ages .. (as we most of the time .. pay the bill after 45 days) .. Cust. Care also gives you same gyaan that after  45 days interest would be reflected in next cycle so in short 60 days .. when it comes to repayment .. (either make full payment or no payment at all .. 0 or 1) .. partial payment doesn't do anything good from consumer side (not sure whose brainchild idea bulb bulb of minimum payment is and what good purpose it serves for consumer) .. Though I have seen many CC statements of various banks .. I find standard chartered Bank statement most confusing and it takes real genius to find hidden charges which are mentioned in their statements .. convincing their customer care that additional charges are applied proves you have extraordinary speaking skills too .. (my experience though)

Critic Critic
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Paying at least min amt due ensures no negative reporting to cibil.
The PostMighty The PostMighty
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 .. Same thing happened with fk axis cc ,  left 2k unpaid in Jan 2023 , they charged 2k interest on entire amount , also even it was the very first time any amount left unpaid .. there customer care  did not reverted it, nor given any sort of  refund .. 

can anyone tell me if there is any solution to get refund ..?

Deal Newbie Deal Newbie
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Request them for cancellation, else tell them to cancel the card and you will go with Banking Ombudsman with this as even if their rules say so it is against natural principles of justice. They cannot charge Interest on total amount when it is not due and that too on exorbitant rates.

Deal Newbie Deal Newbie
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Thanks for sharing .. its a learning for US .. smile

Deal Lieutenant Deal Lieutenant
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It really is a debt trap. They issue you ltf cards and hope that you commit such kind of mistakes. Credit card interest rates and penalties are too high too. Be careful. 

Deal Newbie Deal Newbie
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Don't pay .get the card settled.for sometime cibil will be impacted but later it will be resolved.

Ask them to waive off

Post Emperor Post Emperor
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Always pay extra for any card

In the past I was trapped by sbi card

I have a due of Rs.44000 and I pay Rs.40000 and I got a refund of Rs.7000 after statement generation.

I have a financial charge and GST was around Rs.6000 for the next statement.

They include interest from the previous bill to the next bill.

I contacted sbi and got a reversal after 1 hour of conversation.

Again in the next month's statement they also charged me interest and GST.

Again I contacted SBI and got a reversal.

So always be careful with credit cards otherwise we will lose our money.

This month my friend also has the same situation with HDFC

Lets wait and see the reaction from HDFC

Deal Subedar Deal Subedar
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If you want reversal then pay the whole amount including interest & threaten to close the card mention the reason for closing card. Not sure but chances are they will reverse the interest as bank do no want to lose customers specially heavy spenders.

You should have paid full bill amount, all banks chargers on the whole bill amount if not paid total. I know it is loot but you can't do anything. RBI as usual sleeping.

Deal Cadet Deal Cadet
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that is why they say in credit card industry ' never be a revolver' , you will have to pay through your nose

Commentator Commentator
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File complaint befor RBI complaint portel also file suit before consumer court....

Deal Newbie Deal Newbie
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i paid arround 18 k penalty to miss 10 k

Deal Cadet Deal Cadet
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Yes. its on total outstanding amount.

Deal Cadet Deal Cadet
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this is what all credit card companies follow, im quite surprised u didnt know before
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