New unethical tactics by credit card companies to squeeze customers.

Got an email forward today which mentioned that action has been initiated against two multinational banks for violating RBI guidelines.

They seem to have come up with a unique scam. They would deliberately delay sending
monthly credit card bills to customers so that customers will get delayed in dropping the
cheque. Then they charge late fees, interest, fine etc. And in cases where customers do
drop the cheque on time, the banks would delay realising the cheque deliberately so that
they can charge customers for late delivery.

Looks like these guys are not satisfied with the exhorbitant (30% p.a.) interest rates that
they currently charge for those that do not pay the monthly dues in full. It would be helpful
for credit card users to be wary to avoid falling in such traps.

Dealing with credit card companies is easy if you keep in mind a few things :

1. Pay no annual or joining fees for any card. Most card issuers today give fully free cards.
Remember that they need you more than you need them. And you have lots of banks to
choose from.

2. Pay your monthly dues in full - do not rollover your payments. The interest charged is
around 30% p.a. or more (though they will mention it as 2.5% p.m. to make it look low).
Also, once you start rolling over your dues, you do not get free credit even for fresh purchases.

3. Be aware that you have given no security / collateral to them. So control is in your hands.
There is no way they can make you pay any unjustified charges. Fight any unjustified
charges and just refuse to pay. Follow it up with a threat to close the card and go ahead
and do it if they do not relent.

4. Know that there is no free lunch. Buy on your card only if you can pay it in full when the bill
lands at you door next month. Avoid impulse purchases.

5. Credit cards are not evil. Infact they are very useful. It is just that you need to know how to
use them properly.