Late payment charges

[vm999]

I am using AU LIT credit card and I wanted to understand regarding the interest charges levied in my statement.
My overall due amount is 155000 and I paid 150000 within the due date timeline and paid the remaining amount after 4 days from the due date.

For this late payment Bank has levied charges of ~10k+GST and when I contacted the customer care they are saying that the interest will be calculated on the complete statement amount.
Is this right?

 

[Riya Sharma]

Yeah it is right. That is how all banks operate. You could argue with PNO for a one-time reversal and feign ignorance by stating that you misread/had an error in paying the full due. But besides that nothing else can be done here.

 

[shashankrt]

I am using AU LIT credit card and I wanted to understand regarding the interest charges levied in my statement.
My overall due amount is 155000 and I paid 150000 within the due date timeline and paid the remaining amount after 4 days from the due date.

For this late payment Bank has levied charges of ~10k+GST and when I contacted the customer care they are saying that the interest will be calculated on the complete statement amount.
Is this right?

Relax. 1st of all interest of 10K on 1.5 lakh is approx 6.5% per month which is 77% per year. Not sure if this is correct?
Secondly you should not have been charged late payment - only interest as you made part payment on time.

Thirdly you should have been charged interest only on Rs 5000. This is as per RBI norms. However please check the detailed terms on your card.

Either way, just call the customer care, ask them to transfer to someone senior else mention you will be escalating to PNO for breach of RBI rules.

Also share the T&C of your card here as above does not make any sense. Just speak to someone senior in customer care. 1st level will be of no use here and threat of escalation to PNO should work. If not then actually drop an email to PNO mentioning RBI rules.

Yeah it is right. That is how all banks operate. You could argue with PNO for a one-time reversal and feign ignorance by stating that you misread/had an error in paying the full due. But besides that nothing else can be done here.

No that's not correct. In fact not even close.

 

[#aniket]

I am using AU LIT credit card and I wanted to understand regarding the interest charges levied in my statement.
My overall due amount is 155000 and I paid 150000 within the due date timeline and paid the remaining amount after 4 days from the due date.

For this late payment Bank has levied charges of ~10k+GST and when I contacted the customer care they are saying that the interest will be calculated on the complete statement amount.
Is this right?

No, it isn't.

On the outstanding amount left to be paid from the txn date, i.e, ₹5,000 only.

Note: When you miss to pay your TAD, your interest free period ceases until you make the full payment.

They keep saying like that because most of the banks are not adhering RBI's directions properly.

 

[vm999]

Relax. 1st of all interest of 10K on 1.5 lakh is approx 6.5% per month which is 77% per year. Not sure if this is correct?
Secondly you should not have been charged late payment - only interest as you made part payment on time.

Thirdly you should have been charged interest only on Rs 5000. This is as per RBI norms. However please check the detailed terms on your card.

Either way, just call the customer care, ask them to transfer to someone senior else mention you will be escalating to PNO for breach of RBI rules.

Also share the T&C of your card here as above does not make any sense. Just speak to someone senior in customer care. 1st level will be of no use here and threat of escalation to PNO should work. If not then actually drop an email to PNO mentioning RBI rules.


No that's not correct. In fact not even close.

Thankyou very much for the detailed explanation.
Yeah... I tried connecting with their seniors but it came back to 1st level only. I dropped a mail, let's see. Otherwise I will definitely escalate this