Wednesday, July 25, 2012

Hefty charge on late payment

I was offered a easy credit card from Standard Chartered Bank. It allows the borrower to draw out a cash line, with a first layer of $3,000 free of interest. Interest is charged at slightly lower than 18% on the excess over this layer. The marketeer told me that I could take out only $3,000 and pay no interest.

If the borrower makes any payment late, there is a service charge of $80 for the late payment. I find this fee to be exorbitant.

I object to this type of business practice, which aims to make money on people who may overlook to pay on time, due to travel or a busy schedule.This is like laying a trap on a careless or unsuspecting customer.

 I feel strongly that the Monetary Authority of Singapore does disallow this type of deplorable practice.


3 comments:

Anonymous said...

"I feel strongly that the Monetary Authority of Singapore does disallow this type of deplorable practice."

I think the only chance for MAS to review your proposal is to send your letter to Straits Times or New Paper forum. They may not want to print while I doubt MAS will bother to reply since they don't have the clearance from MAS Chairman/Deputy Chairman/MD and finally the Govt to take this up. See, so many layers of red tape.....no wonder Ministers' salary is so expensive as they have ALOT to do...

freemanland said...

all because of "light touch" policy?

yujuan said...

Let's be fair. Itching to make money out of time pressed clients is also the prerogative of local Banks, esp DBS. If you forget to check your Account, and it goes into Overdraft territory, you are slapped with interest payable within 24 hours, irrespective whether you have plenty of dough in other accounts with DBS. No SMS warning to let you top up.
Meaning, all Banks are just legally licensed Loan Sharks in disguise.

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