Mar 28, 2011 12:30 PM
8275 Views
(Updated Jun 21, 2013 12:23 AM)
I am a cardholder of SBI for about a year , was using this card mostly for my fuel and other retail purchases that I make and I normally do not carry over the due more than the usual 50 day credit period. There has been few calls started coming in whenever there were purchases made more than 5000 Rs stating about Flexi pay and offers on Balance transfer from other bank credit card.
I turned down all the offers as I normally do not intent to extend the credit period as the credit cards normally charge a whooping 36% pa interest, Let me come to the point where things started to take a ugly turn , SBI called up with a offer on Balance transfer where they insisted that a balance transfer from any other credit card to SBI card will offer a 60 day interest free period or for a period of six months with about 1.7% per month interest rate. I made a balance transfer for about 15k from my ICICI credit card to SBI.
Now comes the rules of the games , When a balance transfer is done 1) The credit card does not carry the validity of the credit card and hence one can not get a credit period of 50 days , 2) Any purchase that will be made by you will undergo a rate of 36% pa right from the day of purchase to the day the payment will be made
the above 2 point seemed to acceptable to an extent , but the so called balance transfer has got yet another catch , When a balance transfer is made for example for about Rs 10, 000 for a period of 6 months , there is no specification of how much of payment can be done a month , assuming it is for six months if you take 10, 000 Rs + Applicable rate of interest for six months / 6 -> one month payment , then you will be taken for a ride . Let us assume another 2000 Rs is made on a purchase by the person who has availed a balance transfer and when a payment is made considering the 2000Rs purchase + applicable rate of interest and another 2000 Rs approx for BT , SBI will charge the poor customer 36% pa than the 1.7% per month acually stated ,
SBI does not have the mehtod to distinguish the payment made for Balance transfer , They purposefully account the complete payment you have made only to the Balance transfer and will treat your 2000 Rs purhcase as not payable until all the BT amount is paid , so eventually you ll end up paying 36% pa interest for 6 months on Rs 2000 Purchase made and interest of 1.7% per month on the rest of the BT amount available after payment. well logically the BT has the validity of about 6 months and the payment shall be accounted under BT with last preference , But this is done purposefully by SBI to con the customer by tempting them for a interest of 1.7% pm but charging them with a 36% pa interest.
I called up the customer care and closed the BT and made all the payments to close the account , The funny part is they have sent a bill for 500 Rs for an outstanding of Rs 100 , Which I made a note to the customer care , They accounted it for a system error :0 , But have not reverted any amount , Be watchfull when you use your credit card and make it a point to use wisely , Now that I have all the emails and corrospondences that I have with them , I am planning to sue this guys if the system error of theirs is not rectified , Will keep things updated.
April 26th 2011 ,
Finally SBI have now corrected their errors and have reverted the amount , Lessons to be remembered is that do not take any offers that are flashy despite being insisted on the benefits , There are alwasys downfalls , Have a watchfull eye on the details of your statement , There could be definitely errors in the system which is computing the statement , Unless and untill you push the guys who work in these you can never get the work done. Atlease these guys finally had the courtesy to take it as feedback.
