Mr. Tan
I want to share with you a bad unethical practice from bank X.
They sold a credit card to me at a mall. I don't really need the card, but the sales person was persistent. I obliged to help the young man.
I used the credit card on a few occasions but forgot to pay the bill. They charged a high interest rate on the card.
For my normal credit card, I have set up GIRO to deduct from my account. For the new card, I overlook it. Why did they not tell me to set up GIRO? I suspect that they want to make me overlook the payment, so they can charge a high interest rate on the card. This is how they make money.
I asked for the GIRO form and submitted it. The form was quite complicated. I was surprised to learn that they only deduct the minimum amount each month and carry forward the balance to charge interest. I have more than sufficient balance in my bank account - so I intended to pay each month's bill in full.
Bank X told me that there was a column in the GIRO form to pay the minimum amount or in full. I did not tick in full, so they assume that I want to pay the minimum amount.
This bank is quite dishonest in its practice. They purposely want to catch their customers unwary and to find ways to charge their exorbitant interest rate for late payments.
Please share this experience with your readers.
REPLY
Thank you. I agree with you that Bank X is greedy to make profit. They do not have any hesitation to "cheat" their customers. I suspect that many banks practice this unethical model.
I want to share with you a bad unethical practice from bank X.
They sold a credit card to me at a mall. I don't really need the card, but the sales person was persistent. I obliged to help the young man.
I used the credit card on a few occasions but forgot to pay the bill. They charged a high interest rate on the card.
For my normal credit card, I have set up GIRO to deduct from my account. For the new card, I overlook it. Why did they not tell me to set up GIRO? I suspect that they want to make me overlook the payment, so they can charge a high interest rate on the card. This is how they make money.
I asked for the GIRO form and submitted it. The form was quite complicated. I was surprised to learn that they only deduct the minimum amount each month and carry forward the balance to charge interest. I have more than sufficient balance in my bank account - so I intended to pay each month's bill in full.
Bank X told me that there was a column in the GIRO form to pay the minimum amount or in full. I did not tick in full, so they assume that I want to pay the minimum amount.
This bank is quite dishonest in its practice. They purposely want to catch their customers unwary and to find ways to charge their exorbitant interest rate for late payments.
Please share this experience with your readers.
REPLY
Thank you. I agree with you that Bank X is greedy to make profit. They do not have any hesitation to "cheat" their customers. I suspect that many banks practice this unethical model.
The fault lies with card holder, the Bank had taken duty of care, informing him on Giro form whether to tick payment in full or the minimum sum.
ReplyDeleteOne must admit one's carelessness before anyhow blaming the Bank. Banks are legalized loan sharks, even MAS the regulator would say, "You went in with your eyes opened."
They will also use all sorts of lures to get you to sign up but conveniently omit that these benefits expire in a few months if you do not apply for them again, e.g. 5% off groceries but you have to indicate your preference to the bank every 3 months whether you like it to apply to groceries, petrol or something else, otherwise it drop to 1%. These practices are getting rampant with telcos as well
ReplyDelete