Someone asked me why I decided to give advance notice to cancel the UOB Infinite Visa credit card on its expiry, as the bank is likely to waive the annual fee on request of the customer. The answer is - I don't want to rely on the goodwill of the bank. The contract said that the card will be automatically renewed and the annual fee is $1,500. It did not give the legal right to the customer to get a refund if the customer cancel the card after renewal. If they refuse to waive the fee or give a proportionate refund, there is nothing that the customer can do.
This is an example of an unfair contract term, i.e. levy a heavy annual fee on the customer without getting the prior consent. I am aware that other credit cards have similar conditions, but I am prepared to take the risk if the annual fee is less than $100 (but not for $1,500). Anyway, I do not need an expensive credit card, as I do not make use of the privileges.
A representative of UOB Bank called me this evening to apologise for the mistake in cancelling my card and to inform me that the card has now been reinstated. I had raised this issue during the weekend and did not get any reply from the bank for the past three days. It does not matter to me whether the card is reinstated or not - as I do not intend to use it.
I have nothing personal against UOB Bank which has served me well during the past years. I only wish to give this example for business corporations to change their business practice and act fair to their customers. They should not have unfair contract terms and levy heavy charges to boos their profits.
Tan Kin Lian
Let's start a cash club. I understand that merchants have to pay fees to use credit card machines and NETs. Some of the merchants charge less if customers pay in cash. If we can start a cash club and have merchants signed up to offer discount to cash paying customers, that should put pressure on banks to think twice trying to charge high fees to merchants and customers.
ReplyDeleteHow many levels of privilege for credit card holders? Classic, gold, platinum, titanum, infinite, signature? Just wonder what are those privileges?
ReplyDelete"It did not give the legal right to the customer to get a refund if the customer cancel the card after renewal."
ReplyDeleteActually, the annual fee is for the following year, not the previous year.
Ie, if they really do charge you, you can call to cancel the card, and they must refund the fees since you will not be using the services of the credit card.
I've called to waive all my credit card charges, except for one DBS card which I did not use for a few years. The CSO said he could not waive the annual fee (for the following year), so I cancelled the card and the annual fee was refunded into the account.
I think if the individual is careful with his finances (always pay in full), there are many perks that credit cards provides.
Cheers!