Cancellation of EMI on IDFC Bank credit card

[pritish98]

I have purchased one laptop on Flipkart using IDFC Bank Select Credit card and I chose No cost EMI on the time of order. On the next day I have cancelled the order. But on the 3rd day I got a message from bank the transaction has been converted into EMI. As I have cancelled the order the principal amount has been refunded from Flipkart but the EMI is not yet cancelled. It's has been 7 days from the date of purchase and the EMI is still active. I have contacted IDFC Bank customer care but they are saying once it is converted into EMI it will not be getting auto cancelled, I have to forclose the EMI via mobile app or calling customer care.

The surprising fact is they have charged 1% of principal amount (98154) + 18% GST as a processing fee which is Rs. 1158.22 whereas other bank's charge is Rs. 235 (199+GST). And if I forclose the EMI I have to pay 3% of the principal amount + GST+ Interest till date from the date of purchase, which is a big amount.

Please suggest me what should I do now! This is very ridiculous that without purchasing anything I have to pay such a big amount.

 

[akshayhs]

No other option. This is how EMIs work.

 

[pritish98]

No other option. This is how EMIs work.

But I have cancelled the order before converting into EMI. Still do I need to foreclose the EMI?

 

[akshayhs]

But I have cancelled the order before converting into EMI. Still do I need to foreclose the EMI?

Yes. Cancelling the order is only on Flipkart. Flipkart is not going to report the order is cancelled. Because you chose no cost EMI, the process here triggered instantly from the bank's side. Even though it may take a week for the entire process to get complete, the bank would attach it to your card account immediately.

 

[pritish98]

Yes. Cancelling the order is only on Flipkart. Flipkart is not going to report the order is cancelled. Because you chose no cost EMI, the process here triggered instantly from the bank's side. Even though it may take a week for the entire process to get complete, the bank would attach it to your card account immediately.

is this same process applicable for all other banks? Or only for IDFC Bank?

If this is the case we should not cancel or return any order on Flipkart/Amazon. Need to think twice before placing order.

 

[meetprj]

I have purchased one laptop on Flipkart using IDFC Bank Select Credit card and I chose No cost EMI on the time of order. On the next day I have cancelled the order. But on the 3rd day I got a message from bank the transaction has been converted into EMI. As I have cancelled the order the principal amount has been refunded from Flipkart but the EMI is not yet cancelled. It's has been 7 days from the date of purchase and the EMI is still active. I have contacted IDFC Bank customer care but they are saying once it is converted into EMI it will not be getting auto cancelled, I have to forclose the EMI via mobile app or calling customer care.

The surprising fact is they have charged 1% of principal amount (98154) + 18% GST as a processing fee which is Rs. 1158.22 whereas other bank's charge is Rs. 235 (199+GST). And if I forclose the EMI I have to pay 3% of the principal amount + GST+ Interest till date from the date of purchase, which is a big amount.

Please suggest me what should I do now! This is very ridiculous that without purchasing anything I have to pay such a big amount.

Thats how it is. When you placed the order on EMI it will deduct the full amount and then convert to EMI since you have done it via flipkart and not credit card. So they will charge you all the possible charges there are even though you cancelled the order. Flipkart will not cancel the emi transaction. They will just refund the amount you paid back to the card. The cancellation is to be done via bank since its the bank giving you option of EMI. Also the T&C of IDFC is very clear on the processing fee of 1% or 199 which ever is more plus gst. Also you will be charged GST on the interest amount of the EMI. The no cost emi is by merchant and not the bank so what ever is the interest they will refund you but the interest amount will still incur gst on it which you will need to pay

 

[pritish98]

Thats how it is. When you placed the order on EMI it will deduct the full amount and then convert to EMI since you have done it via flipkart and not credit card. So they will charge you all the possible charges there are even though you cancelled the order. Flipkart will not cancel the emi transaction. They will just refund the amount you paid back to the card. The cancellation is to be done via bank since its the bank giving you option of EMI. Also the T&C of IDFC is very clear on the processing fee of 1% or 199 which ever is more plus gst. Also you will be charged GST on the interest amount of the EMI. The no cost emi is by merchant and not the bank so what ever is the interest they will refund you but the interest amount will still incur gst on it which you will need to pay

That means No Cost EMI is more dangerous rather than one time payment. If you are not aware then it's big trap of paying multiple charges.

Oh my God!

 

[0xfallup]

What ….cancelling the order will simply reset everything…I don’t think foreclosure anywhere comes near

 

[meetprj]

That means No Cost EMI is more dangerous rather than one time payment. If you are not aware then it's big trap of paying multiple charges.

Oh my God!

Yes it is. Thats why most of the offers are on "No Cost EMI" not on upfront payments

 

[0xfallup]

Recently I cancelled my HDFC CC no cost EMI and I only paid the amount which was deducted …everything was reversed

 

[meetprj]

Recently I cancelled my HDFC CC no cost EMI and I only paid the amount which was deducted …everything was reversed

No cost EMI by bank or merchant?

 

[0xfallup]

No cost EMI by bank or merchant?

Merchant

 

[meetprj]

Merchant

Thats strange. Normally it does not work like this. Lucky for you

 

[pritish98]

I think HDFC Bank only charges the processing fee if your order is cancelled. They will cancel the EMI automatically from their end. Only the processing fee you have to pay because it is already being charged when you choose EMI option. The same thing was happened with one of my friend and he had to pay the Rs. 235 of processing fee only, no other charges.

 

[0xfallup]

I think HDFC Bank only charges the processing fee if your order is cancelled. They will cancel the EMI automatically from their end. Only the processing fee you have to pay because it is already being charged when you choose EMI option. The same thing was happened with one of my friend and he had to pay the Rs. 235 of processing fee only, no other charges.

Mine processing also got reversed

 

[pritish98]

Mine processing also got reversed

then it's very good for you. You're lucky enough!

 

[lazyman]

is this same process applicable for all other banks? Or only for IDFC Bank?

If this is the case we should not cancel or return any order on Flipkart/Amazon. Need to think twice before placing order.

For amazon pay icici, I placed order on no cost emi, and I cancelled product, emi also got reversed, no charges. Other banks axis, hdfc, Kotak etc cancel emi if we call customer care without any charges within 30 days of purchase.

 

[0xfallup]

For amazon pay icici, I placed order on no cost emi, and I cancelled product, emi also got reversed, no charges. Other banks axis, hdfc, Kotak etc cancel emi if we call customer care without any charges within 30 days of purchase.

Yeah! There’s a TAT for this …I don’t know why people are making a fuss about it

 

[kochiro]

In my case order never got placed money deducted and emi too. They were so dumb that they said I have to pay emi for something I never bought and refund will show as excess balance. Had to close it with 900 rs extra charge on top of processing and gst

 

[pritish98]

For amazon pay icici, I placed order on no cost emi, and I cancelled product, emi also got reversed, no charges. Other banks axis, hdfc, Kotak etc cancel emi if we call customer care without any charges within 30 days of purchase.

But in my case it was IDFC Bank and after cancelling the order I have called customer care immediately to cancel the EMI. But they are saying EMI don't get auto cancelled. You have to foreclose the EMI.