Indusind Charged 7000 Interest

romilq wrote:

Just because it is like it has been always doesn’t mean we cannot wish or lobby for change. Even in traditional loans you only pay interest on the outstanding amount. Everyone understands credit card loan works in a different way that was not the point. 

I think bill should display approx amount if due date is missed like
Total amount due xyz on or before dd-mm-yyyy
Total amount due xyz+abc after dd-mm-yyyy
many many card holders are unaware of these charges, can not understand also
and now this DCC 😄 even we are unable to understand it

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...

There is balance transfer facility in some creditcards, which you can avail for this purpose.

Kisi se leke de te paise yaar

Yeh bahut galat ho gaya

Pehle poochna chaahiye tha forum mein

narayana1dd249 wrote:

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...

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...

From the rbi master circular

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.

@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.

@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.

narayana1dd249 wrote:

@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.

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.

@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.

DimeDime wrote:

@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.

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.

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

For 150rs due Axe-is charged me 590+

That's huge

guest_999 wrote:
You missed the point. If A took loan from B for 30 days of Rs.10000 & B took same amt loan from C as he didn't have the money to give loan to A & after 30 days A return 9k to B & say take interest only on remaining 1K which I will pay after a week then it is not right because B still have to pay full interest on 10k for 29 days to C.

B will say same thing to C as A ?

MrMonkey wrote:

B will say same thing to C as A ?

That was for simplicity but to make it a bit more detailed, B took loan from C with an agreement that he will return the full amt after 30 days with interest & added his own commission to make profit(& assuming A will return the full amt after 30 days) while lending to A for 30 days so now if A doesn't return full amt then B will also not be able to return full amt to C & he will have to bear the extra cost of interest for the total amt if he doesn't take it from A.

Seinfeld wrote:

So does this mean if I have 1 rs pending, I will be charged on the full statement dues.

No. They have a ceiling for that. In my knowledge the threshold is 100 rupees. Otherwise you don't have to pay any charges for 1~100 rupees. 

romilq wrote:

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.

That could reduce reward rate for us.

DimeDime wrote:

balle-balle. play stupid games, win stupid prizes.

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

He didnt know just for 3623 they would charge full interest then again he should have know these as a credit card holder and if he wasn't sure u should have asked here in desi dime. I always ask here a question of which im not sure abt

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 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)

neel648 wrote:

He didnt know just for 3623 they would charge full interest then again he should have know these as a credit card holder and if he wasn't sure u should have asked here in desi dime. I always ask here a question of which im not sure abt

There is customer care too. IndusInd spams us with card, loan offers. Spamming them once in a while with questions is one of the things we can do. No!!! 🐒

 .. 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 ..?

amc2 wrote:

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 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)

Paying at least min amt due ensures no negative reporting to cibil.

bikidas2060 wrote:

No. They have a ceiling for that. In my knowledge the threshold is 100 rupees. Otherwise you don't have to pay any charges for 1~100 rupees. 

Only situation where one doesn't have to pay any charges for non-payment/less than total due amt is when generated bill in statement has min due amt as zero(happens if total due amt is less than Rs.10 or maybe Rs.100 I think as it depends on bank). If min due amt is non-zero & you pay even 1 rupee less than total due amt then interest will be charged on entire amt from the day of txn. I once got a bill with min due amt zero & total due amount as Rs.2 which I forgot to pay & only remembered after 1 week of due date but no charges levied in next month statement.
@Seinfeld

guest_999 wrote:
Only situation where one doesn't have to pay any charges for non-payment/less than total due amt is when generated bill in statement has min due amt as zero(happens if total due amt is less than Rs.10 or maybe Rs.100 I think as it depends on bank). If min due amt is non-zero & you pay even 1 rupee less than total due amt then interest will be charged on entire amt from the day of txn. I once got a bill with min due amt zero & total due amount as Rs.2 which I forgot to pay & only remembered after 1 week of due date but no charges levied in next month statement.
@Seinfeld

Khatarnak 🤔🥺

guest_999 wrote:
Only situation where one doesn't have to pay any charges for non-payment/less than total due amt is when generated bill in statement has min due amt as zero(happens if total due amt is less than Rs.10 or maybe Rs.100 I think as it depends on bank). If min due amt is non-zero & you pay even 1 rupee less than total due amt then interest will be charged on entire amt from the day of txn. I once got a bill with min due amt zero & total due amount as Rs.2 which I forgot to pay & only remembered after 1 week of due date but no charges levied in next month statement.
@Seinfeld

You are correct, few years back HDFC used to run campaigns, where you get payment holidays for 3 months or so. I remember dues used to be in statement, but minimum dues were always 0 during the no payment required months.

guest_999 wrote:
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...

From the rbi master circular

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.

you are missing the vital relevant lines of para 9.b.(iii) 

   "The MITC shall specifically explain that the ‘interest-free credit period’ is suspended if any balance of the previous month’s bill is outstanding."

So if you read closely, the intention behind the outstanding word in the interest free period term is, previous month's outstanding not current month outstanding. Otherwise, there is no meaning at all to the relevant lines of para 9.b.(iii) and 9.b.(v).

The intention behind RBI guidelines regarding interest free period is that, for suppose if we don't pay January bill fully (paid partly only), then we shall lose interest free benefit for February bill and thereafter transactions only. But what banks are doing is they are cancelling the interest free credit period benefit for January bill transactions too therefore instead of few tens & hundreds the financial charges are whooping to thousands of rupees.

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.

Demondealer wrote:
i mean i could have, but i though interested on 3.6k is very less so why bother

@dimedime

i didnt know they will charge on whole amount. it was a mistake

You didn't even care about CIBIL?

Ragnarok77 wrote:

You didn't even care about CIBIL?

CIBIL is affected only if even min due amt is not paid.