What are the finance charges for amount under 100?

[Pankhuri]

My friend made some calculation error and ended up paying 80 rupees less than the due amount on her simplysave credit card. Today she received next statement and got 4.5k worth of finance charges. She contacted CC but they said that since the statement was generated on 20th, 24hrs haven't passed so they can't raise the request for reversal of these charges. She was advised to call tomorrow. So wanted to know what are RBI guidelines regarding such small payment dues? Her total bill was over 50k.

 

[akshayhs]

Here you go.

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[VISHESH_BANSAL]

My friend made some calculation error and ended up paying 80 rupees less than the due amount on her simplysave credit card. Today she received next statement and got 4.5k worth of finance charges. She contacted CC but they said that since the statement was generated on 20th, 24hrs haven't passed so they can't raise the request for reversal of these charges. She was advised to call tomorrow. So wanted to know what are RBI guidelines regarding such small payment dues? Her total bill was over 50k.

Now Pay whatever billed.

That is why Credit Card is Double edged Sword.

Late Payment Fee may be zero for Amount below 100 but Finance charges i.e, interest charges are 5500% of Rs.80🫠

 

[varun__goel_]

My friend made some calculation error and ended up paying 80 rupees less than the due amount on her simplysave credit card. Today she received next statement and got 4.5k worth of finance charges. She contacted CC but they said that since the statement was generated on 20th, 24hrs haven't passed so they can't raise the request for reversal of these charges. She was advised to call tomorrow. So wanted to know what are RBI guidelines regarding such small payment dues? Her total bill was over 50k.

Generally, it is considered if your statement due is of less than Rs 100, they won't charge or report to cibil if it hasn't been paid.

But you can convince cc as it was a just a mistake and only it was 80rs. They will reverse the charge. Nothing will reported as min amt has already been paid.

 

[varun__goel_]

So If SBI doesn't show some mercy, she is fucked? Itni mehengi calculation mistake 😂😂

Yess, indeed. my father was charged finance fees around 7-8yrs ago just bcoz of few paisas😑
And that too because of mistake of branch official mistake(she didn't notice paisas at the end🫡) and they were not ready to reverse the charge...

 

[varun__goel_]

Well lets see how it goes, I thought RBI had guidelines regarding this but looks like she is fucked.

Does credit relationship matter? 3-5L spends on this card each year for about 3 years now without any late payments in history.

Her fate only lies in the hand of executive she will face. Nhi to jaise ltf krate hai vse isko bhi reverse kralena🤣😆

 

[varun__goel_]

But how have they charged around 4-5k. even if we consider 50%p.a. interest on 50k it totals around 2500 incl gst

 

[Pankhuri]

But how have they charged around 4-5k. even if we consider 50%p.a. interest on 50k it totals around 2500 incl gst

She made mistakes when even telling about her mistake.

Her previous bill was 40802, her payments were of 40709. So difference of 93.

In the statement it is billed as financial charges on retail? What does that mean?

EDIT - Just checked her Dec statement again, In it shows previous balance as 76968, which is wrong as the nov statement clearly mentioned total dues at 40802.

 

[helloworld]

She made mistakes when even telling about her mistake.

Her previous bill was 40802, her payments were of 40709. So difference of 93.

In the statement it is billed as financial charges on retail? What does that mean?

EDIT - Just checked her Dec statement again, In it shows previous balance as 76968, which is wrong as the nov statement clearly mentioned total dues at 40802.

Did she purchased anything till now? Other than 93.

 

[Pankhuri]

Did she purchased anything till now? Other than 93.

yes, some 30-40k spend.

 

[helloworld]

yes, some 30-40k spend.

For future reference purpose, available and applicable to all banks statements. If by mistake we missed the payment, then interest will be calculated on both billed and unbilled, pending purchases. First clear the whole due and make it '0' outstanding and then proceed for fresh purchase.

 

[Walter White]

Now Pay whatever billed.

That is why Credit Card is Double edged Sword.

Late Payment Fee may be zero for Amount below 100 but Finance charges i.e, interest charges are 5500% of Rs.80🫠

RBI regulation tha na ki sirf pending amount pe hi interest katega?

 

[Walter White]

yes, some 30-40k spend.

If previous dues are not cleared on time, even new spends will attract late payment charges.

 

[Pankhuri]

If previous dues are not cleared on time, even new spends will attract late payment charges.

Ok, that explains the snowballed charges. Lets see how it goes, costly lesson for her I guess.

Is that why there is a discrepancy between Total amount due in nov statement and previous balance of the dec statement?

 

[VISHESH_BANSAL]

But still how 5k charges? I'm not getting, could someone explain calculation..

42% APR😂

5k is Justified, Calculations are well explained in MITC with different different case senario, If any one want to calculate manually follow the senario in which you fall and calculate yourself .

Ask OP for Statement if want to verify the Calculations 😂

 

[VISHESH_BANSAL]

RBI regulation tha na ki sirf pending amount pe hi interest katega?

But what about Purchases after Statement date😂

 

[Walter White]

But what about Purchase after Statement date😂

Vo baad me dekha tab pata laga. Mujhe laga uske baad koi spends nhi the.

Isliye total amount se 10rs zyada daal diya karo safety ke liye.

 

[VISHESH_BANSAL]

Vo baad me dekha tab pata laga. Mujhe laga uske baad koi spends nhi the.

Isliye total amount se 10rs zyada daal diya karo safety ke liye.

As soon as default happens, Credit Free Period ends.

 

[Shubham Yadav]

My friend made some calculation error and ended up paying 80 rupees less than the due amount on her simplysave credit card. Today she received next statement and got 4.5k worth of finance charges. She contacted CC but they said that since the statement was generated on 20th, 24hrs haven't passed so they can't raise the request for reversal of these charges. She was advised to call tomorrow. So wanted to know what are RBI guidelines regarding such small payment dues? Her total bill was over 50k.

Usne khud calculate hi kyu kiya ?

Statement se dekh kr bharna hota h bill

Khud se count krke thode hi bill bhara jata h

 

[helloworld]

But what about Purchase after Statement date😂

😀 actually OP missed some calculation.. it must be 80k+ to get 4.2k interest charges in 45 days.

anyway, now they won't forget and have two options with them..

- use card responsibly (or)
- switch to debit card