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Old 18th February 2009, 14:51   #241
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Cool, keep up posted.

If you have not paid in full then they will not reverse interest charges.

They might make it half (If they charged 4k as interest, 2k would be credited back to your account).
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Old 18th February 2009, 14:54   #242
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Cool, keep up posted.

If you have not paid in full then they will not reverse interest charges.

They might make it half (If they charged 4k as interest, 2k would be credited back to your account).
and thats what I would like them to do.
I don't mind paying the interest on the money I have not paid.
In fact its due on me.

BUT I will not pay any interest on money I have paid.
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Old 18th February 2009, 15:31   #243
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and thats what I would like them to do.
I don't mind paying the interest on the money I have not paid.
In fact its due on me.

BUT I will not pay any interest on money I have paid.
The sad fact is they will lend deaf ears to our requests. But, even if they reduce to half, that's like half the battle won. Good luck !
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Old 18th February 2009, 15:43   #244
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You become "defaulter" even if you have been paying ALL EMI on time.
Oh wow, with the floating population in all major cities the amount of defaulters would be very high.

Is this clause arguable in court?

I will read my terms and conditions today. Does it say if not intimated of changes to address and other points will be marked as a defaulter?

I find it highly stupid to be called a defaulter as long as the EMI's are being paid.

The term defaulter itself is described as defaulted on paying EMI right? Or does each bank have its own meaning of it?

Also i am surprised the bodies governing these allow such terms and conditions.

Also does it hold for nationalised banks too? I understand private banks are goons.

Sorry for too many questions but i have always tried to be informed about such things.
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Old 18th February 2009, 15:44   #245
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@bblost, don't want to sound preachy, but rolling over credit-card dues is exhorbitantly costly. Infact a much better option is to get a comparitively low-interest personal loan and pay back all outstanding on card.

A credit-card should be used only as a convenience that allows us to avoid carrying the 'cash in our bank a/c' around. If the purchase we plan to do using the card cannot be paid back in full when the bill comes next month, that purchase should not be done. Exception being a 'medical emergency' or something.

Simple rules for making credit-cards work for you :
Pay credit card bills in full. Always.
Never pay any annual fees or joining fees for any credit card. There are many free-for-life cards available.
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Old 18th February 2009, 15:53   #246
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Originally Posted by bblost View Post
and thats what I would like them to do.
I don't mind paying the interest on the money I have not paid.
In fact its due on me.

BUT I will not pay any interest on money I have paid.
Bro my advice is finish the amount off asap. ICICI is like a money sucking leech when it comes to credit cards. I have seen the similar state as yours. The interest they calculate is too much. Best way is to finish off the amount asap and as for refund of interest or getting it less the chances are very remote. If you will threaten them to cancel the card they will cancel but will not decrease the interest amount.
Still try to slog it as much as you can.
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Old 18th February 2009, 15:54   #247
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^supremeBaleno. completely agree with what you have written.

The entire situation is because of not having had a outstanding in the 10k plus region for a almost 3 years now. Even before that the mess was cleared up very fast.

You can see my earlier posts on this thread where I say the exactly the same
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Simple rules for making credit-cards work for you :
Pay credit card bills in full. Always.
Never pay any annual fees or joining fees for any credit card. There are many free-for-life cards available.
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Old 18th February 2009, 15:56   #248
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Originally Posted by supremeBaleno View Post
Simple rules for making credit-cards work for you :
Pay credit card bills in full. Always.
Never pay any annual fees or joining fees for any credit card. There are many free-for-life cards available.
Bang on Target

I am such bad customer since last 10 years been using a credit card and can proudly claim that i have not paid any interest ( just once got it converted to EMI and paid a flat Rs.800 for conversion but no interest charges ever)

I follow the same policy and some more :-

1. I always pay in full ( irrespective the amount) and my monthly CC bills range anywhere between 15K to 30K depending on the time of the year.

2. Extract the maximum of the 50 day credit period. I use 2 cards effectively. One has a bill date of 1st and another 22nd. So i make purchases using card depending on what day i am using it.

3. I never write a cheque before. I cut a cheque for the exact last due date and drop it around a week before.

In short, i am not sure if i am a bad customer since i haven't allowed them to take me for a ride yet, in terms of interest or a good one....still confused
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Old 18th February 2009, 16:57   #249
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I have a query on interest calculation.

Suppose my total outstanding in the statement is 1 lakh.
I pay 50k before due date.

Will I be charged interest on 1Lakh or on 50k.
Interest on credit card outstandings beyond the free credit period (from the first purchase bill of the credit card co to the due date (approx 51 days)) is free. No interest, if you have cash advances (taken cash against credit card from an ATM machine) there's a daily interest charge on cash.

In India the RBI has stated that the cash outstanding balance has to be cleared first, i.e. any payment you make which is less than the complete balance outstanding on your credit card, is first applied to the higher/daily interest bearing balance (as you have two types of balances on your card, cash advance taken and credit card purchases) third type is balance transfer but this is not very popular in India as it is in the West.

However if you roll over your balances or if you do not pay in full, you get charged according to the average daily balance method.

Here you go for further information. Credit card interest - Wikipedia, the free encyclopedia

In a nutshell say after four months of having a 1 lakh rupee balance on your card, you pay off in the fifth month, the sixth month's statement will show a interest charge for the period from the statement cycle opening date till the date they received the payment and credited the receipts to your outstanding balance/or till your account balance is zero outstandings.

Mobike008 - they make money on every purchase you make, remember VISA takes 2% to 2.5% of your purchase value from the merchant who swipes the card. Of this 0.8% go to the Network - VISA/MasterCard. The balance is shared by the issuing bank, (your banker who issued you a credit card and the bank where the merchant has an account with or where the merchant receives his funds into). You are a very good customer to them, no outstandings, yes the money, the money they make on the interchange is far more than they earn as interests if you have a large rollover on your card.

Cheers
M M

Last edited by mmmjgm : 18th February 2009 at 17:02.
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Old 18th February 2009, 16:59   #250
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Is this clause arguable in court?

I will read my terms and conditions today. Does it say if not intimated of changes to address and other points will be marked as a defaulter?

I find it highly stupid to be called a defaulter as long as the EMI's are being paid.

The term defaulter itself is described as defaulted on paying EMI right? Or does each bank have its own meaning of it?

Also i am surprised the bodies governing these allow such terms and conditions.
Our definition of "default" is different from definition of default that is used by banks in loan agreements.

So, yes lots of banks do yse clause such as "Failure to notify change of Job/Address" as conditions of default.

Other then that, all banks (including nationalized banks) have other conditions that would make a customer "defaulter.

E.g. :

"Depreciation of Security" clause.

If you take a home loan and total outstanding principle is 20 lakh on a particular month.

Now if property prices fall in that area and value of home becomes 12 lakh.


Then bank can call you a defaulter and ask for 8 lakh (In form of surrender of LIC Policy, FD, Gold)


Do read each and every line of loan agreements. There are lots of pitfalls to trap customers.


Fortunately, if you pay EMI on time then there is ne need to worry about most of these clauses. These are there just for CYA.
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Old 18th February 2009, 17:21   #251
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Thanks Netfreak, really appreciate your help

I actually do read the whole fine print. I have been denied loans for asking questions on these terms and conditions.
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Old 18th February 2009, 17:35   #252
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Originally Posted by mmmjgm View Post
Mobike008 - they make money on every purchase you make, remember VISA takes 2% to 2.5% of your purchase value from the merchant who swipes the card. Of this 0.8% go to the Network - VISA/MasterCard. The balance is shared by the issuing bank, (your banker who issued you a credit card and the bank where the merchant has an account with or where the merchant receives his funds into). You are a very good customer to them, no outstandings, yes the money, the money they make on the interchange is far more than they earn as interests if you have a large rollover on your card.

Cheers
M M
I am aware that VISA/Mastercard making money on every transaction.

But, how am i effected when i am not levied any additional charge ( say some merchants ask for 2.5% if paying by card and in such occasions i pay by cash, thereby depriving them of that additional money)

For e.g : If i buy a product worth Rs.100 and i pay only Rs.100 then its no affect directly to me as a customer whereas the merchant pays Rs.2.50 from his pocket. So he effectively makes a gross sales of Rs.97.50 for that product.

Whereas in other cases, some merchants ask to pay Rs.102.5 and in such cases, cash zindabad
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Old 19th February 2009, 04:12   #253
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Originally Posted by NetfreakBombay View Post
Our definition of "default" is different from definition of default that is used by banks in loan agreements.

So, yes lots of banks do yse clause such as "Failure to notify change of Job/Address" as conditions of default.

Other then that, all banks (including nationalized banks) have other conditions that would make a customer "defaulter.
Netfreak, I am from the outsourcing industry and for sure I know for a fact that 1 in 10 applications for unsecured credit (non relationship grant of credit) by banks are granted creidt due to CIBIL checks remaining 9 are rejected.

Which leads to the conclusion that one in ten applications have a good credit history and have not defaulted, (bucket case or write off case) remainder ?
cheers
M M
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Old 19th February 2009, 09:58   #254
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Originally Posted by mmmjgm View Post
Which leads to the conclusion that one in ten applications have a good credit history and have not defaulted
That means they have not defaulted "till this point".

These conditions are there usually to protect the bank in future.
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Old 19th February 2009, 19:42   #255
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3. I never write a cheque before. I cut a cheque for the exact last due date and drop it around a week before.
mobike, but by the time cheque cleared, due date will be over. How do you avoid late payment?
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