Nightmares of an ex-credit card customer

• In spite of having been frustrated with Citibank credit cards and closing it [after a
painful pursuit-because closing and getting an acknowledgement of the same is in
itself a great ordeal], I was persuaded to sign up for another credit card-this time
from a public sector bank-SBI Cards.
• The reason I diluted my stance about credit cards was that while credit card is
useful in some ways, faceless banking was frustrating and with a public sector
bank, I would be able to interact with a human should I ever be distressed.
• I always used the card primarily for convenience, and very less for credit period;
hence I would always pay my dues promptly on or before the due date
• I was upset with SBI Cards who demanded hefty ‘finance charges’ in December
2007 statement for purported delay in payment of outstanding amount beyond the
'Due Date’
• Frustrated with the unfriendly response, I cleared the entire amount in January
2007 relating to my transactions except the ‘finance charge’ and intimated SBI
Cards that I don’t intend using it any longer and demanding waiver of unjustified
finance charges.
• SBI Cards continued to send e-mail statements by adding late charges and so on,
which I did not recognize since I had decided to take up the matter with Banking
Ombudsman.
• Since I got no relief from Banking Ombudsman [I was not given an opportunity to
explain the core issue at all], I represented to the designated Appellate Authority
at the RBI.
• Even RBI failed to see the real issue.
• In April 2007, persuaded by one Collection In-charge of SBI Cards, Kerala, I paid
one time settlement [which was the amount levied as Finance Charges which I
was principally against], informed the call centre about it with a request for
closure letter as promised and dropped the cut credit card pieces in the drop box-
all on the advice of a Collection In-charge, who promised help.
• To my utter dismay, the misery did not end; in fact it is far worse with SBI still
sending me letters claiming outstanding payment from me!? I also keep getting
calls. When I point out that I had opted for settlement & paid the dues on the
advice of a senior functionary of the bank, the annoying inquiry from the caller is
whether I have got the settlement letter from the bank. This is rubbing salt into
deep wounds. I was coaxed into paying the dues outstanding in April 2007 with a
promise of settlement BUT I never got my settlement letter and now, the same
bank staff provokes me with the nasty question if I have the settlement letter. The
bank in letters to me claims more money due from me for settlement. Even if the
money is paid, is there anyone [the whole issue here is faceless banking, which is
the biggest pain with the way business is conducted these days by banks and other
service providers]

The story regarding SBI Cards’ justification for levying ‘finance charge’ went
thus:
 SBI Cards claimed it had announced a ‘Payment Holiday Offer’ in
November 2006 and had sent me a communication mailer
 I was completely unaware of any such mailer [with so many promotional
mailers and posts they send, one develops mail fatigue; I don’t deny there
could have been some such mailer but as you will see, this is the way the
bank held this reference to routine mailer as key justification for their
unjust demeanor]; in subsequent correspondence demanding explanation
for levy of unjust Finance Charges, I was informed by SBI Cards that if a
card holder did not wish to avail of the payment holiday offer, entire
amount mentioned in the November 2006 statement was to be paid before
the Due Date for that month.
 One can clearly see the lack of transparency on the part of SBI Cards, with
a view to hoodwink the customers to derive undue benefit for the bank;
otherwise, why did the bank not elicit a clear preference separately from
its customers on the payment holiday offer?
 The lack of fair banking practice comes out clearly when you read what
follows:
o Rather than running the scheme of ‘payment holiday offer’ in a
transparent manner, the bank innocuously followed up the mailer
with their November 2006 monthly statement with ‘Payment
Holiday’ indicated under “Payment Due Date” column. There was
no reference to the ‘payment holiday offer’ in the statement nor
was any repetition of rider for availing or not availing of the offer
o Imagine an honest situation, which happened in my case, since I
was unaware of the bank’s mailer on ‘payment holiday offer’. I
was not clear for a few days at that time about ‘payment due date’
for November 2006.
o The bank made a passing conclusion in its response that 21st
November was the payment due date; we all have seen that these
dates do get changed now & then when service providers want to. I
expected to see a footnote in the monthly statement explaining the
offer & its impact on the payment due date. On subsequent
reference to the Cardholders’ Agreement, I found that there is
nothing which indicates a specific day of the month as due date for
payment of card dues.
o Not willing to take chances, and being prompt always, I paid a
large amount which was due for the transactions done, on 30th
November 2006.
o The bank used the opportunity to levy finance charges, which
aggrieved me and I continued to insist on its waiver.

• Even disregarding everything that transpired earlier, I still accepted the

one time settlement offer and paid in April 2007, as I first indicated above
 The one time settlement letter eluded me; to add pain to injury, refusing to
recognize the promise & the executive who promised settlement, I continue to get
telephone calls from SBI insisting that I clear the outstanding. When I relate the
earlier conversation about settlement & my compliance with it, I am asked the
embarrassing question: “Have you received the settlement letter?”

Fathom this: A bank executive talks to me on phone [which is the only

access one has, for reaching the service provider; you never know any specific
individual or office where you can walk into, to interact face to face and get
convincing answers] and cajoles me to give in and accept settlement with promise
that it is authentic, official & settlement letter would follow; the settlement letter
never comes but some other soul keeps calling and refuses to recognize the
promise made by its own staff and threatens legal notice if the outstanding is not
paid.

If this is not torture, what else can be? I could have been compelled to
accept the illegal demand in return for peace and productive time.

But I have decided to endure this, hoping to meet justice. Will I succeed?
Well I’m not sure. What I am sure about is that I’m willing to bear the ordeal-to
prove the bank wrong and achieve a moral victory over unscrupulous practice, to
campaign with service users of all type to fight for right and expose the callous &
unscrupulous electronic age businesses.