Stanchart Cards Bank Harassing me

[balina2k]

Dear all,
I am not sure whether i am posting in right thread or not?. I have a problem with the Standard Chartered Bank Credit Card. My Issue is cooking from last two years still unresolved. Request you all to please take 5-10 minutes in reading my problem and suggest me a solution to get rid of mental and physical harassment from the bank officials.

Brief Gist of the problem:
I used my card for Rs.50,000/- , after one month i got a phone call from bank requesting to convert to EMI Payment option which can be closed anytime after paying the entire amount,further the request can be given on call center phone. Initially i refused but they called me regularly and disturbed me. one day when i was busy with my office work i unintentially agreed to convert.
Then they had opened a seperate account for the EMI Payments and it was reflecting in my card statement which was very confusing to understand. I felt it was a mistake to accept the offer and this confusing statement,After one month i paid the total amount and asked to close the EMI Account over their call center number( this is the procedure they told me when this option was chosen by me unintentionally).

Till then they never closed the EMI Account but continuously showing my payment (in lieu for the Rs.50,000/- used) in the credit part of the statement,which is again confusing. I repeatedly requested many times over phone to close the account but they give unrealistic information and denied to close the account. No proper clarification was given.

Later some months some collection goons started harassing me for the payment , when i explained the situation they never acted to it moreover asked me to do final settlement which again is huge sum which was forced charges. They used all the abuse language and started wasting my personal and office time. I was communicating for the clarification from the bank over emails but no proper information was given.This was continuing and one day all of the sudden they stopped calling me.

But i tried to get the status by calling the call center wherein they told me that card was in inactive state and they cannot help in providing any information. Even i stopped to pursue on this later. After one year they started again from scratch saying that i need to pay the huge sum accumulated in interest other wise they will proceed in legal court . They threaten me of issuing me Summons from court. I am worried now how to deal with this situation ? Can any one please suggest me how to deal on this issue?
--Rama Kanth

[ganpat1956]

Credit card operations are under the direct control of RBI. Several guidelines have been issued by RBI on the matter of unfair practices by the card issuing companies. A very important circular letter has been addressed by the RBI to all commercial banks in this regard and I am furnishing the link for the same here. Reserve Bank of India.

Another master circular appears to have been issued by RBI during the beginning of this year. Though I am unable to trace it in the RBI's web site, I have been able to get the full version of this through another source and the same can be viewed here: http://www.creditcardwatch.org/Master%20Circular.pdf

In a nut shell, you have to keep safely all the proof of your payments and other correspondence till the matter gets resolved. In the meantime, a complaint needs to be filed with the RBI regarding the unfair practices adopted by Stanchart.

You also need to file a police complaint against Stanchart and their collecting agents for causing harassment and intimidation (Remember to take their names and IDs when they call on you next time). Remain firm with a resolve not to be cowed down with the frequent visits of goons.

Incidentally, a group of lawyers in Chennai have formed a Trust under the name of Centre for Social and Economic Justice and they have filed a public interest litigation in the Madras High Court last month to strictly enforce the master circular mentioned above. In this petition, they have included the Finance Ministry, RBI, IBA and all the credit card issuing Banks as the respondents. The details of the same are available at creditcardwatch.org

[karira]

balina2K,

Besides what Ganpat said, please also have a look at the following:

ICICI Bank to give 15 lakh rupees to family of two personal loan customers who committed suicide after alleged harassment | Parinda.com

India 360: Banks under fire for suicide cases - Yahoo! India News

The following two websites will also be of help to you:

The Banking Codes and Standards Board of India (BCSBI)
..:: BCSBI ::..

The Credit Card Holders Association of India
Credit Card Holders Association of India

Please also read the following circulars from RBI (they look different from what Ganpat has pointed out):
http://www.creditcardasson.org/RBI%20guidelines%20on%20credit%20cards.doc

[maneesh]

ganpatji and karira,
great information.
balina,
one more suggestion, never speak over phone. ask them to send you email and also you want to say some thing do it over email. if done over phone confirm by email.
get complete statement of all the credit and the payment made.
and make this request in writing.
sit with one of your friend who understand finance may be ca
i am sure armed with all the information and fir against the goons you will be able to resolve your problem.

[balina2k]

Dear ganpat1956,karira,maneesh ,

Thanks a lot for all your replies. Now i am feeling a little comfortable with all your suggestions. Only thing i am frightened is the bank guys call me and harass me saying that they will send summons from court. I never had any communication or visited any police stations or courts in my lifetime, maybe that might be the cause for my frightened.

Now i am feeling secured and safe as nice friends like you are there with me giving valuable suggestions

Thanks
Rama Kanth

[sidmis]

Hello Rama Kanth,

In addition to what Ganpat1956,Karira & Maneesh have suggested, I would suggest you to approach RBI Ombudsman for redressal of your grievance. You can lodge your complain online without going to court.
Here's the link to RBI's Ombudsman Scheme. Reserve Bank of India.

Also, Credit card Companies very rarely go to court for recovery.


Sidmis

[kushal]

Credit card Companies very rarely go to court for recovery.

That is a piece of information, I must say.

[colnrkurup]

Now I feel proud of being part of this group.

[maneesh]

Dear balina,
there is nothing to fear from summons. Summons is basically to record the view point of the other party. The harrasening part in the summon is to wait in the court.
Do not worry from Summon, infact it is good. You will get a chance to explain your point to the court.

A few precautions for handling summons:
1. You find out the court section and mark your presence. Appear confident and ask for direction. You will find many people will come out to help you. This is important as many times the court will not get time to hear your case. Ask the section to give you a copy of the record that you are present.
2. When you go for appear in Summon, carry a written statement of all that you want to say. It is advisable that you carry a short summery of the points like an executive summery and the detailed submission. Many times judges are hard pressed for time in that case you can inform from summery and submit all the documents to the court at the time of hearing.

And always remember the Principle of Natural Justsice i.e. you cannot be given any punishment or deprieved of any of your right without giving an oppertunity for hearing and present your case.

[ganpat1956]

Thank you Maneesh for giving all of us the synopsis and further course of action in the event of getting a summons. But like Sidmis I too feel that the matter will not go to that level. It is just a threat by the collecting goons and nothing more than that. I had a somewhat similar experience with SBI Cards last year. Fortunately I have a distant cousin who was employed in the card division of another bank a until a few years ago. He gave me all the right advices and in turn I threatened SBI Cards with action from my side. I will initiate a blog tomorrow and narrate the entire episode there.

[Abhinav Bohare]

Do the basics right

The biggest of cases have gone down coz of not doing the basics right

I would request you to report the matter to the Local PS i.e. Police station , with a copy to the SSP or DCP or your dist, Immediately

If basics are not done , no other complaint can support you , as the case is pertaining to harassments by those guys who are undercover anti social activists.

Without fear , apprehensions, doubts and DELAY, give a application to the PS.

Most of the times when ever such cases are filed or reported to the PS there is an immediate success

Even if Police does not help you would have things on record

DO THE BASICS RIGHT

Everythings else has been well told to you by our senior members. Ganpat etc have in fact suggested you to go to Police .

Fine that its about RBI, SC Bank etc etc etc
But 1st of all its about Protection right and Police is the 1st authority

So close this window , Go right away

good luck

[ganpat1956]

Originally Posted by sidmis

I would suggest you to approach RBI Ombudsman for redressal of your grievance. You can lodge your complain online without going to court. Here's the link to RBI's Ombudsman Scheme. Reserve Bank of India.

Sidmis

This is by way of amplifying Sidmis's suggestion:

1. As per the Ombudsman scheme a complaint arising out of the operations of credit cards, shall be filed before the Banking Ombudsman within whose territorial jurisdiction the billing address of the card holder is located and not the place where the bank concerned or the credit card processing unit is located.

2. No complaint to the Banking Ombudsman shall lie unless the complainant had, before making a complaint to the Banking Ombudsman, made a written representation to the bank and the bank had rejected the complaint or the complainant had not received any reply within a period of one month after the bank received his representation or the complainant is not satisfied with the reply given to him by the bank.

Therefore as Maneesh has suggested keep your record of Correspondence straight as they will serve as documentary evidences in your case.

[sidmis]

In view of the rise in the number of litigations against banks for
engaging recovery agents in the recent past, it is felt that the
adverse publicity could result in serious reputational risk for
the banking sector as a whole, RBI said on Tuesday.

An urgent need has, therefore, arisen to review the policy,
practice, procedure involved in the engagement of recovery agents
by banks in India. Accordingly, banks are urged to follow
prescribed specific considerations while engaging recovery agents.

In its mid-term review of the Mid-Term Review of the Annual
Monetary Policy Statement, RBI said, "Complaints received by the
Reserve Bank regarding abusive practices followed by a bank's
recovery agents would invite serious supervisory disapproval.

The Reserve Bank would consider imposing a temporary ban (or even a
permanent ban in case of persistent abusive practices) for
engaging recovery agents on those banks where strictures have been
passed/penalties have been imposed by a High Court/Supreme Court
or against its Directors/Officers with regard to the abusive
practices followed by their recovery agents.

An operational circular in this regard would be issued by November 15, 2007."


October 30, 2007
Banks face ban on engaging recovery agents

Here's another article with similar theme.
Banks warned against abusive practices by recovery agents

[colnrkurup]

I recommend that one should follow the laid down basic procedure as correctly adviced by Mr.Ganpati. Normally a complaint is likely to get sorted out at Ombudsman level itslef.

[kushal]

This thread is now closed and in information graveyard.

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