Got charged interest and gst

[non-employee_agent]

I paid my full bill on due date but the statement credit shows one day later as the payment date.

But I'm aware that we have 3 days before late payment or interest charges can be levied. I've emailed ICICI and contacted them on FB. Just confirming if what ICICI did is legal or not? I plan to fight this even though the amount is small. (I also have a WM account with them).

 

[Sahilhenzy]

I paid my full bill on due date but the statement credit shows one day later as the payment date.

But I'm aware that we have 3 days before late payment or interest charges can be levied. I've emailed ICICI and contacted them on FB. Just confirming if what ICICI did is legal or not? I plan to fight this even though the amount is small. (I also have a WM account with them).

You have full rights to fight. Charges are not valid. Best of luck.

 

[Deleted member 11974]

write an email asking them why were charges levied

 

[non-employee_agent]

Waiting for a reply on FB and email.

 

[kartikk]

I am currently doing the same with SBI but I paid the bill in pieces but in full before due date.

 

[Pankhuri]

I am currently doing the same with SBI but I paid the bill in pieces but in full before due date.

any chance that you have auto debit enabled?

 

[Pankhuri]

You have full rights to fight. Charges are not valid. Best of luck.

Would the 3 day grace period applies even if you don't pay minimum due before due date?

 

[Zacobite]

I paid my full bill on due date but the statement credit shows one day later as the payment date.

But I'm aware that we have 3 days before late payment or interest charges can be levied. I've emailed ICICI and contacted them on FB. Just confirming if what ICICI did is legal or not? I plan to fight this even though the amount is small. (I also have a WM account with them).

interest may apply.. 3 days grace is for credit buereau reporting as default.. not for interest waiver.. you can negotiate hard.. 1 day shd be reversed...3 day grace is in penal charge only

 

[non-employee_agent]

interest may apply.. 3 days grace is for credit buereau reporting as default.. not for interest waiver.. you can negotiate hard.. 1 day shd be reversed...3 day grace is in penal charge only

That's wrong. Go through this document https://rbidocs.rbi.org.in/rdocs/no...DEBITCARDC423AFFB5E7945149C95CDD2F71E9158.PDF

It says no charges can be applied, late payment or any other charges, before 3 days since due date.

 

[non-employee_agent]

Would the 3 day grace period applies even if you don't pay minimum due before due date?

Yes go through this.

https://rbidocs.rbi.org.in/rdocs/notification/PDFs/92MDCREDITDEBITCARDC423AFFB5E7945149C95CDD2F71E9158.PDF

 

[non-employee_agent]

Update - they said that even though the statement credit date shows within 3 days, the settlement date was beyond it. They have reversed the interest but not gst. What are my options here to get gst reversed as well? It's only about 100 Rs but if they're wrong should I fight them further, for the principle.

 

[Pankhuri]

Update - they said that even though the statement credit date shows within 3 days, the settlement date was beyond it. They have reversed the interest but not gst. What are my options here to get gst reversed as well? It's only about 100 Rs but if they're wrong should I fight them further, for the principle.

Escalate to NO or PNO. If both of them fail to give GST back then escalate to RBI. It isn't about 100rs, it is about being against blatant theft.

For example, they are keeping this GST, why? When the payment on which the GST was applied is null and void, why do they get to keep the GST on it?

 

[Zacobite]

That's wrong. Go through this document https://rbidocs.rbi.org.in/rdocs/no...DEBITCARDC423AFFB5E7945149C95CDD2F71E9158.PDF

It says no charges can be applied, late payment or any other charges, before 3 days since due date.

hence i said "may" 🙂 and it always mentions chgs / fees etc.. never clearly says interest... as per update it got reversed

 

[sidp]

Update - they said that even though the statement credit date shows within 3 days, the settlement date was beyond it. They have reversed the interest but not gst. What are my options here to get gst reversed as well? It's only about 100 Rs but if they're wrong should I fight them further, for the principle.

No. That's why it's advisable to pay before 4 days. You also need to bear some responsibility. Take it as a lesson.

Just get written confirmation from them, it won't be reflected as late payment in credit bureaus.

 

[dexter_greycells]

For anyone reading this, if you have the option of enabling auto-debit (which means you have a savings account with the same bank) then close your eyes and enable it. It has only pluses and no negatives.

I shall clear the 2 biggest misconceptions people have about auto-debit -
1. If you have auto-debit enabled and you pay via another mechanism (CRED, PayTM etc), there will be duplicate / double payment to your CC - This happens if and only if if your payment via other mechanism has not cleared and takes a few days to post. CRED always posts instantly. PayTM and Mobikwik are also mostly instant . Google Pay, Amazon Pay, HDFC BillPay can take even up to 5 days in worst cases. If you are not one of those people who pay on due date or just a day before, then you have nothing to fear. Another important point here - if the CC bill is Rs 1L and you have paid only Rs 90k, auto-debit will only debit Rs 10k.
2. The bank will add random charges to your CC and since you have auto-debit enabled you will end up paying for them - Auto-debit happens on the due-date. You will have nearly 3 weeks to review your CC statement for any random charges to dispute them.

Why you should do enable auto-debit?
1. Everyone will have unexpected life problems. Someone in the family may suddenly end up in a hospital. You might have a major setback at work or a sleepless project you are working on or personal problems that distract you for days. In that case paying your CC bill might be the last thing on your mind. Auto-debit will rescue you from interest / late payment charges.
2. On rare occasions, there are glitches with the other payment mechanisms like CRED, Mobikwik. Your money has been debited but it doesn't get posted to your CC due to a glitch on their end. I have had Rs 7k of a CC payment stuck in Mobikwik's black hole for nearly 6 months once. You may also have a situation where you have a huge CC bill and you have paid from multiple sources to maximize scratchcards/cashback. It is easy to make a calculation mistake (I did once and I cost me heavily). Auto-debit will again come to your rescue.

A downside that every CC user should be aware of -
If your CC bill is of Rs 2L and you paid Rs 1.9L by the due date, then the interest will be charged not on Rs 2L - 1.9L = Rs 10k but on the entire Rs 2L.

 

[Deleted member 9785]

u

For anyone reading this, if you have the option of enabling auto-debit (which means you have a savings account with the same bank) then close your eyes and enable it. It has only pluses and no negatives.

I shall clear the 2 biggest misconceptions people have about auto-debit -
1. If you have auto-debit enabled and you pay via another mechanism (CRED, PayTM etc), there will be duplicate / double payment to your CC - This happens if and only if if your payment via other mechanism has not cleared and takes a few days to post. CRED always posts instantly. PayTM and Mobikwik are also mostly instant . Google Pay, Amazon Pay, HDFC BillPay can take even up to 5 days in worst cases. If you are not one of those people who pay on due date or just a day before, then you have nothing to fear. Another important point here - if the CC bill is Rs 1L and you have paid only Rs 90k, auto-debit will only debit Rs 10k.
2. The bank will add random charges to your CC and since you have auto-debit enabled you will end up paying for them - Auto-debit happens on the due-date. You will have nearly 3 weeks to review your CC statement for any random charges to dispute them.

Why you should do enable auto-debit?
1. Everyone will have unexpected life problems. Someone in the family may suddenly end up in a hospital. You might have a major setback at work or a sleepless project you are working on or personal problems that distract you for days. In that case paying your CC bill might be the last thing on your mind. Auto-debit will rescue you from interest / late payment charges.
2. On rare occasions, there are glitches with the other payment mechanisms like CRED, Mobikwik. Your money has been debited but it doesn't get posted to your CC due to a glitch on their end. I have had Rs 7k of a CC payment stuck in Mobikwik's black hole for nearly 6 months once. You may also have a situation where you have a huge CC bill and you have paid from multiple sources to maximize scratchcards/cashback. It is easy to make a calculation mistake (I did once and I cost me heavily). Auto-debit will again come to your rescue.

A downside that every CC user should be aware of -
If your CC bill is of Rs 2L and you paid Rs 1.9L by the due date, then the interest will be charged not on Rs 2L - 1.9L = Rs 10k but on the entire Rs 2L.

i keep min due as auto debit

 

[dexter_greycells]

u

i keep min due as auto debit

That will only save you from late payment charges. Interest + GST is the real killer. Have Full Dues as auto-debit. There is no harm. The worst that can happen is double payment to your CC. Either the bank will refund it automatically soon or you can continue spending on your CC and it will be auto-adjusted next month.

We have 9 CCs in our home and 7 have auto-debit on Full Amount enabled since we have savings account with the same bank. Just like anybody on TF, I always use various tricks to maximize earnings on CC bill payments. So the auto-debits almost never happen. In all these years, auto-debited saved us a couple of times and has given zero issues. I enabled auto-debit only after an expensive mistake in the past.

 

[sidp]

It has only pluses and no negatives.

auto debit is good option. At least for minm due. But there is also negatives. If si bounces, there is steep charges. For some unlucky people, This bounce charge shows up in cibil. Even if you have paid full from other method.
It shouldn't. But it gas happened.

I shall clear the 2 biggest misconceptions people have about auto-debit -
1. If you have auto-debit enabled and you pay via another mechanism (CRED, PayTM etc), there will be duplicate / double payment to your CC -

At least in case of Axis there is double payments. Has happened at least twice with me. I paid from pay now option in axis app 3-4days before due date. It settles right away. Still it deducted auto debit on due date. It also show disclaimer that auto debit is on, there might be duplicate payment.

If your CC bill is of Rs 2L and you paid Rs 1.9L by the due date, then the interest will be charged not on Rs 2L - 1.9L = Rs 10k but on the entire Rs 2L.

it's for all issuers? Are you sure?

 

[dexter_greycells]

auto debit is good option. At least for minm due. But there is also negatives. If si bounces, there is steep charges. For some unlucky people, This bounce charge shows up in cibil. Even if you have paid full from other method.
It shouldn't. But it gas happened.

At least in case of Axis there is double payments. Has happened at least twice with me. I paid from pay now option in axis app 3-4days before due date. It settles right away. Still it deducted auto debit on due date. It also show disclaimer that auto debit is on, there might be duplicate payment.

it's for all issuers? Are you sure?

Good point about SI bouncing. Auto-debit makes sense if you have an amount in your savings that covers your CC bill. Otherwise, you will be in trouble as you said. But if you are on TF, you are not someone who will wait for auto-debit. You will use the half a dozen apps to earn a few rupees in the process. Auto-debit is supposed to be your Plan B. Plan A is always you paying it by checking out latest offers.

I don't have an Axis CC or savings account. HDFC, SBI, ICICI, Citi, Kotak and even Saraswat (co-op) do not do double payments from my own experience.

I am sure. It is in the T&C of every card issuer. That's the #1 source of their earnings - that one person who is unable to or forgot to pay in full this month and hadn't opted for an EMI on the major purchase(s).

 

[Zacobite]

Good point about SI bouncing. Auto-debit makes sense if you have an amount in your savings that covers your CC bill. Otherwise, you will be in trouble as you said. But if you are on TF, you are not someone who will wait for auto-debit. You will use the half a dozen apps to earn a few rupees in the process. Auto-debit is supposed to be your Plan B. Plan A is always you paying it by checking out latest offers.

I don't have an Axis CC or savings account. HDFC, SBI, ICICI, Citi, Kotak and even Saraswat (co-op) do not do double payments from my own experience.

I am sure. It is in the T&C of every card issuer. That's the #1 source of their earnings - that one person who is unable to or forgot to pay in full this month and hadn't opted for an EMI on the major purchase(s).

i hate auto debit.. its a nightmare when it doesn't go through and you will never know..