Credit Cards – What should the bank tell you?

By | July 12, 2014

The Banking Codes and Standards Board of India (BCSI) have prescribed self regulatory norms through which credit card issuers have to treat their customers. Next time you apply for a credit card do remember to have these norms in mind and extract the best service from the provider.

Information

The credit card provider is expected to give you complete details of the fees, interest charges, billing methodology, penalties, renewal and termination procedures by way of explaining and also providing you with a detailed service guide/booklet giving all the details. A copy of the `Most Important Terms and Conditions’ has to be given at the time of application itself to the customer.

Yes or No

 

Once the customer has shown interest in applying or has already applied, it is the duty of the provider to clearly state what will be turnaround time for the application, meaning, in how many days will you know whether you application is accepted or rejected.

Online Alerts

The provider has to provide online alerts (which could also include mobile alerts) for any transaction above Rs 5000 where the transaction is a “Card not Present” transaction like net based purchases etc.

Credit Card/Pin dispatch

The customer can receive the card/PIN at the mailing address or alternate address or in case the customer wishes he has the option to physically collect the Card/PIN from the branch of the provider. Also for safety, the PIN will always be sent as a separate mail.

Activating card

In cases where the bank activates a credit card without consent from the customer and charges any bill/fees for it, the bank is liable to pay a penalty amount equivalent to twice the value of the charges.

Immediate information on Limit reduction

The bank is expected to immediately inform the customer by SMS/Mail in cases where the credit limit is decreased and simultaneously also send a written communication

Loans/Credit facility/Enhancement

Any increase in credit limit or extension of loan can only be done after getting a written consent from the customer.

Credit card Statements

The bank has to send a statement on a pre-determined date and free of cost to all the card holders. In case of non-receipt of statement and complaint by the customer regarding the same, the bank is expected to immediately send a copy of the statement, free of cost.

Notice Period for changes

Any changes in fees, charges and terms and conditions can only be effected after giving at least one month’s notice along with the monthly statement. Only in cases where there is a change in interest rates and regulatory changes the bank can implement them with effect from the date of announcement.

Evidence for transactions

The bank is bound to show original proof of any contentious transactions where they do not accept the customer’s contention. The customer has to be given all the details he or she asks for in cases where the customer feels that he does not recognize a particular transaction.

Get better service from your card giver. Use the above details to ensure that your card provider gives you the service that you deserve. And in case it is not upto the mark, you can lodge your grievance with the Banking Ombudsman.

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.
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About Adhil Shetty

Adhil Shetty is the Founder and serves as the Chief Executive Officer of BankBazaar.com. Adhil has a Master’s degree in International Relations with a specialization in International Finance and Business from Columbia University in the City of New York, and a Bachelor’s degree in Engineering from the College of Engineering Guindy, Anna University. Adhil is an expert in Personal Finance (Car loan/Home loan and personal loan) and he majorly consults on investment and spends rationalization for the Indian loan borrowers. His guidance is number based with real time interest rate calculations and hence useful for consumer’s real time query.

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