Interest charges for correctly paid due and on date for credit card?

Question

I am Balaji B using a credit card of  Bank ltd., I had a due maount to be paid on 7 th april and i did make the payment for the same value on date through fund transfer. In thier credit card statement for current month the date of payment received by bank is also reflecting as 7 th april. But they have charged me 2358 as interest and 400 as late payment charges. Thier customer care also could not help me and they are not ready to escalate this to thier higher authority. I have been using this card for past 9 years and i feel very irritated about the response.

Answer 1

Dear Balaji,

At the outset, let me clarify that this site is designed by a group of senior Banking Professionals to assist Bank Customers at large to provide guidance for resolution of any complain/query/grievance in respect of financial services. This site does not belong to any Bank or a regulator, which may please be noted.

As per RBI guidelines banks can recover late payment charges only if the credit card account remains 'past due'  for more than three days. That is, if you have paid the amount on the due date mentioned on the credit card statement  there is no case for recovery of late payment charges by your bank. 

Since you have not received the desired response from customer service team of the bank I suggest you to take up with the Nodal Officer of your bank seeking redressal. Ensure that complete details like due date for payment of dues, actual date of payment, mode of payment, reference number for the payment etc and also  copies of mails exchanged with Customer Service Department of the bank are provided to the Nodal Officer. Contact details of Nodal Officer of the bank can be found on the bank's website. 

Give 15 days time for the Nodal Officer to respond. In case you do not receive any response or the response  does not satisfy you,  the matter may be escalated  to the Banking Ombudsman for resolution. While writing to the BO, please provide complete details and also enclose the communications exchanged with the bank.

For address of the Office of the Banking Ombudsman, Area of Operation (jurisdiction) and the procedure for lodging complaint, you may access the website https://bankingombudsman.rbi.org.in/

 

Regards

 

J R Mohandas