Intrest charges?

Question

My self sai kishore holding credit card My total outstanding amount is 14500 Rs so i paid 14000 Rs in same month before due date.But bank is interest amount after due date is 500 is debited in my account.Is this correct if customer pays almost 95% amount paid, but bank is interest will charge for full outstanding amount...Nobody will tell while applying credit card.One more problem, I have saving account in bank and kept auto debit for credit card.I already have sufficient balance to pay credit balance in my account but this is did not happened, after this bank charges interest on total amount.Before this i paid 20% of amount.I called to customer care, he told that if you kept auto debit from your saving account, only 5% percent(Min due amount) will be deducted and for the rest of amount interest will be charged.I never seen in auto debit column mentioned with conditions...

Answer 1

Dear Sai Kishor

Credit availed through a Card is always risky, unless you keep a track of the related bills, due dates, payment in time etc.  The credit cards come with lots of terms and conditions in fine print.  If you overshoot the due date, you are levied with late fee plus interest as applicable.  If you pay only the minimum amount due, you end up being charged with interest on the balance.  In the present case, I feel the charges of Rs.500/- might be towards late payment fee and not ''interest'' on the entire amount.  Bank can not charge interest on the amount received.  You should be checking your credit card statement to understand, when the payment of Rs.14000/- was accounted / credited.  I assume that probably your payment might have been accounted for after due date, which attracted the charges of Rs.500/-.  Please ensure correctness on the part of the date of your payment and credit in your card statement.  After ascertaining the facts, if the bank is not refunding the charges, you may take it up further, as per the appended process.

1.    Go to your Bank’s website and search for grievance redressal (or similar name) button and submit your complaint online.

2.    If you do not receive any reply / satisfactory reply within 10 days, lodge your complaint with the Nodal officer of the Bank (either through email or letter)

3.    If you do not receive any reply / satisfactory reply within 10 days from the Nodal officer, lodge your complaint with the Principal Nodal officer of the Bank (either through email or letter)

4.     If you are still not satisfied with the reply / do not receive reply from the Principal Nodal officer within 10 days, lodge your complaint with the Banking Ombudsman (either through letter or email)

RAJA