Aug 11, 2005 03:47 PM
4076 Views
(Updated Sep 11, 2005 06:54 AM)
The days of high interest rates, FDs and RDs are truly over, and one has to be very careful in choosing one's bank.
Remember that every bank is in the business of earning money and they will go to the maximum extent they can get away with. In other words, they will cheat you if you let them do it. And in most cases, you will be at the receiving end.
I have come to believe that the banks(especially the newer private banks) have it all written down as their policy - 'Cheat the Customer First.' Here are some ways that they will cheat you:
- Not giving you complete information.(this is so obvious)
If you are new to the bank, you may not be clear of the procedures and costs, and may not really know what to ask. Here the bank's policy is SHOUT all the benefits to the customer, but ONLY mention the costs and disadvantages IF the customer asks.
I've was once offered a 8000/- loan for a 800/- processing fee; that's 10% even before me actually getting the money!
- Confuse you with a deluge of information.(obvious too)
It works like this, they ask you to fill out a huge form or give you the fine-print documentation or distract you with some'other' product. While you are busy with this, they manage to mention as a passing remark, crucial information that may be disadvantageous to you.
- Pass the buck.
In case you do manage to ask something that is disadvantageous to the bank, the representatives will simply feign ignorance and say they will get back to you or they need to consult somebody else. The expectation here is that you will forget about it after some time.
- Cheat the newbie.
This is down to a fine art, esp. with banks. Imagine a young person with a new job opening his first bank account, or maybe it is your first housing loan or maybe it's your first credit card.
Everything is a mystery to the newbie. Procedures are so complex in banking that they will take time(maybe a couple of years) to get-up to speed with the inner workings of the bank's interaction with the customer.
It is during this honey-moon period that the banks make a killing(esp. true with Credit Cards). By the time the person has'wised-up' he has paid enough money to the bank that does not belong to them. Then the whole cycle starts with the banks getting newer customers.
- Charge first, reverse it later.
Most banks will charge you first for things like min. balance(whether justified or not) and then patiently wait for you to file a complaint and take their own sweet time to settle it. The longer they take to settle, the more money they earn. REMEMBER: Even if they reverse the charge, the bank is earning interest on YOUR money that they have simply decided to pull out of YOUR pocket.
- Legalease.
What frightens the common man are legal language and'official' looking warnings. The banks use these to the hilt to threaten, confuse or browbeat you. The best way is to not only know what the legal stuff actually means, but also if these things are ACTUALLY valid and are applicable to you. In many cases, what'looks' legal may not be legally valid.
- Preventing you from registering greviances.
If you actually thought call-centers were meant to help you, you are too naive for this world. Call centers were invented to frustrate you and kill your spirit. Call centers also act as a BUFFER between you and the bank. Try actually filing a written complaint with your bank manager and see how much it scares him/ her!
I've had bank managers tell me to go outside and phone their call center!
So, be careful and well informed. and REMEMBER: YOU are(at least your money is!) working for the bank, NOT the other way around.
