Thursday, January 7, 2010

Credit card blocked by chance!

Can a bank force a customer holding a free debit card to change over to, and apply for, a credit card and recover the initial charges? What is
the procedure for getting re-credit of the said charges debited to my salary savings banks account? I have neither consented, nor applied for the said credit card dispatched to my residence. If the bank does not agree to re-credit the amount to my savings bank account (correction entry), what is the legal recourse?

Banking cannot be done by force. Your bank should have obtained your consent and an application in writing before issuing the credit card. As per RBI guidelines, in case an unsolicited card is issued and activated without written consent of the recipient, and the latter is billed for the same, the card issuer has to not only reverse the charges forthwith but also pay a penalty amounting to twice the value of charges reversed. In addition to this, you can also approach the banking ombudsman who would determine the amount of compensation payable by the bank, ie, for loss of complainant’s time, expenses incurred, harassment and mental anguish suffered by the person.

I hold an SBI credit card and I’ve paid all the valid dues. A year ago, SBI Cards offered me an easy encash facility loan, and since then I have been regularly paying the EMIs. Now, with 2-3 instalments remaining, I requested SBI Cards to send me the details of EMIs paid by me since last one year, but they have not obliged, stating that they do not have such a system in place. In the meantime, they discontinued monthly statements. When I insisted, they levied finance charges and late payment charges for the same. This apart, they blocked my card, and are threatening to take legal action and share my credit history with CIBIL. Please advise .

Banking Codes & Standards Board of India has released a code of the bank’s commitment to customers, which has been adopted by most banks . According to code 8.14.3, the credit card issuer is required to offer free-ofcost details of credit card transactions every month either via mail or the Internet. Moreover, the issuer is supposed to dispatch the credit card statement on a predetermined date every month. You may take up the matter with the bank’s nodal officer, and if need be, these violations may be brought to the notice of BCSBI and RBI. The issuer might have charged interest for overdue amount and late payment charges as per their terms and conditions, and not because of your insistence for a statement. You should bring out the facts to the nodal officer’s notice and if there is no resolution within 30 days of

Tuesday, December 22, 2009

Mistakes to avoid while using your credit card

With the festive and year-end preparations in full swing, several families are loosening their purse strings. Add to that the convenience that plastic money offers, and it’s very easy to let the itch to spend go out of control. If you are one of those who flash your credit card frequently, you would do well to steer clear of the following pitfalls:

Not reading the fine print

One of the primary causes of disputes is lack of awareness of the terms and conditions that govern the use of your credit card.

“Many people who come to us are not aware of the rate of interest, charges, etc, that their credit cards entail, which, many times, lead to overspending and penalties,” says Abhay Credit Counselling Centre head VN Kulkarni.

Several credit card users are under the impression that paying the minimum amount due every month specified by credit card issuers will reduce their outstanding amount in the due course.

However, the fact is that it will only push you deeper into a debt trap. The card issuer considers the remaining balance to be overdue and charges a hefty interest, which could vary from 42-49% per annum. Given this, the debt burden is unlikely to be eased by paying the minimum amount due.

Unresolved disputes

Several credit card users, in the event of a dispute, prefer to ignore the follow-up calls from the issuer to pay up. It’s best to resolve the same as soon as possible as the interest will continue to be charged till you repay the dues. In addition, late payment fees and other penal charges could be levied and significantly inflate your original outstanding amount.

Although you can withdraw cash from the ATM using your credit card, it’s certainly not a healthy practice as you may have to incur additional charges, which vary as per the bank.

Also, many are not aware that when a credit card is used at an ATM, the interest is charged that day onwards and not after the credit period of 45 days, as is usually the case with swiping the card.

Borrowing to invest

As the last date for making investment declaration falls on December 31 for many salaried individuals, there is a tendency to use the credit card to make tax-saving investments. Considering that the interest charged on credit card outstanding (if not repaid during the credit period) is exorbitant, using it to make investments will actually erode your capital. Therefore, ensure that you use it only if any cash inflow is expected within a month.

“Many credit card users are not aware that their credit limit encompasses any charges levied by the bank. Therefore, if you are paying an interest on the earlier outstanding amount, and yet use up the entire limit, the card issuer could levy overdrawing charges,” points out Disha Financial Counselling Centre chief counsellor Madan Mohan.

Delay in reporting loss

“We have had to deal with several cases where card users have reported loss or theft of credit card to their card issuers after 3-4 days, resulting in miscreants siphoning off the money,” informs Mr Kulkarni.

Remember, credit card issuers will not be held responsible for any misuse during the period they were

Multiple Credit cards

While opting for more than one credit card is not a cause for concern, there is a chance it could lead many users into a debt trap. Many borrowers end up using one credit card’s limit to repay another card’s amount outstanding, paying a huge interest in the bargain.

Also, many opt for certain credit cards only to avail of discounts and freebies that they offer. It is important to realise that credit cards should be maintained solely with the intention of tapping the same during emergencies. No-due certificate Absence

While paying dues to the credit card company under a compromise settlement, you must insist on a ‘no-due certificate’ stating that your dues have been cleared.

The letter should also contain an assurance that the settlement will be reported to CIBIL. This will ensure that you can produce the proof of repayment if your loan application is rejected by another lender, citing unfavourable credit history in the future.

Not keeping PIN under lock

While being secretive about passwords is common sense, many tend to share it with people who they consider trustworthy, disregarding the fact that cases where the trust was broken are not rare.

Although the introduction of a two-factor authentication system has tightened the security mechanism, it is extremely important to give top priority to safeguarding your personal identification number (PIN).

Tuesday, December 15, 2009

Credit card abuse costing City Hall

Toronto civic employees have more than 1,000 City Hall-issued MasterCard credit cards to make small purchases more efficiently.

But policies and procedures designed to safeguard the taxpayer against abuse aren't being followed, says the city's fiscal watchdog.

Jeffrey Griffiths, the city's auditor general, is reporting his findings -- and making 20 recommendations for the four-year-old program -- to the audit committee tomorrow. Since the program was introduced in 2005, city-issued credit card purchases have grown from $2 million annually to $8.5 million a year.

In 2008, there were a total of 29,500 credit card purchases. The cards are limited to a single purchase limit of $3,000, and monthly purchases of $10,000. Card holders are also prohibited from taking cash advances or from buying fuel.

It's estimated if the were used for just half of the small orders acquired through Divisional Purchase Orders, the city could save $100,000 a year from increased efficiency.

But in his audit, Griffiths found that supporting documentation was missing from 2% to 3% of purchases, which means the city, Griffiths wrote, "cannot validate the legitimacy or accuracy of these transactions."

Also, Griffiths found "questionable" purchases made for business meetings.

Also, as an experiment, Griffiths' office submitted a credit card purchase with a fake name and it was approved. Some employees who no longer worked for the city still had active credit cards, but Griffiths pointed out no purchases have been made with them.

Friday, November 7, 2008

Which one you like to shop- Ipod or Mp3 player?

Today if you have dollars to spend nobody could stop you from reaching to the luxury world. Apple's iPod line-up is comparatively simple compared to what other companies offer. But it still makes sense to see what each particular model can offer so you can make a well-informed decision.

The iPod Shuffle is the smallest iPod available. It forgoes the display and it's small enough to clip onto a shirt. If all you want to do is listen to music and you don't care about what particular song is playing, then this is the iPod for you.

You can get one in either 1GB or 2GB storage capacities. Each model can hold 240 or 500 songs respectively. Randomness is a key factor in all of this. If you like small form factors and a certain degree of uncertainty in the songs that play, then the Shuffle will suit you fine.

The iPod Nano melds a small form factor with the power of a full-featured media player. Even with its small size, you get a nice high-pixel wide screen display that can display pictures and video. MP3 players are the ultimate device for portable audio and seem to be one of the must-haves today. As the market offers numerous different models and makes it is difficult to make a purchase decision especially if it is your first MP3 players ever.

On first sight an Apple iPod seems to be the most obvious choice. But it's worth risking a second look at other portable audio products to determine whether they might offer more for your individual needs. The most important selection criteria are surely the sound quality, storage capacity, size and the functionality of a portable MP3 player. Apple iPods come from 1GB up to 160 GB and are still remarkably small. However, other manufacturers like Sony and Samsung have in their product range MP3 players with up to 30GB storage which is enough to store an entire music library on one single device. This storage capacity is recommended when playing videos or for those music enthusiasts who could not select a limited playlist from there library but need to have all their music on the go.

Simple MP3 players with less storage like the ipod shuffle are affordable, stylish and small enough to be carried with you at all time. Nevertheless, you might regret the choice soon when you get used to the comfort of having your favourite music at your disposal at any time.

Thursday, November 6, 2008

Find the best online educational programs with us!

Nowadays, pursuing a degree through online education is common, and the value of online degree from a proper accredited university or college is equally weight than the traditional campus-based degree. With both campus-based degree and online education you have more options to choose from if you want to earn a degree for you career advancement. Online education has many advantages that can benefit its students, but it may not be a good option for all students; then what makes online education a better option for you?

Amongst the advantages of distance learning, online education, likewise, offline (traditional college) classes have the same course materials, merely one is expected to sign up for an online class. The online course structure is also the same as the normal classes themselves, but students are asked to order books from online book store. Students can entertain the class participation and discussion on problems they encounter in the course in the chat rooms and forums. Most students write their views on the issues. Students who have weak language skills can keep an easy pace with the discussion made and view posted. Online education's major source of face to face interaction is through live video and sound with special equipment.

For many people, in the today's busy world, a face to face class is very difficult. If a person works 8 hours on daily basis he could hardly manage taking regular college and ultrasound school. But an online course can put an ease on the time restriction because the person does the work at their own pace and time.

Career is a site to help consumers find online and offline educational programs to help them get the job they want. As the price of education is attaining its altitudes, the rates of students applying for online educational classes are continuing to get greater. Teachers can also record themselves on the required locations and the student can download the film in case the session is missed. This gives a student the chance to catch up on a class session if s/he missed out on that day.

Tuesday, October 14, 2008

Automotive training schools online!

Nowadays it’s very easy to buy a car but to drive it safely is quite risky so for that just join any automotive school. Online Automotive Training Schools offer instruction on the basic concepts and functions of automotive engines through instruction modules. Online Automotive Training begins with instruction on the fundamentals of electrical circuitry, fuels, batteries, motor functions, etc., presented in written, diagram, and sometimes animated forms.

Automotive Training curriculums must continually be updated to keep apace of rapidly changing technology in the automotive industry. Today electronic systems and complex computers run automobiles while measuring performance on the road. Students can expect to learn the essentials of maintenance and auto repair procedures from tires and suspension to computerized functions through Online Automotive Training modules. Courses will emphasize the development of a solid understanding of functions that will be necessary to effectively diagnose and analyze automotive problems.

Course studies in Online Automotive Training may include good communication skills and techniques in relation to customer service. Other skills that will serve an Automotive Technician are sound reasoning capabilities and a thorough knowledge of the complex components and interactions of auto bodies and motors.

Online Automotive Training programs may take up to a year. Completing an Automotive Technician Associate Degree, which includes laboratory studies, can take up to two years. Certified Automotive Technicians can expect to be subjected to regular review and recertification requisites.

Find out the best automotive schools online and begin your training for a career in automotive maintenance and repair.

Friday, October 10, 2008

Grab the right computer training program online!

Nowadays computer education is must for all age groups and every field whether it is hospitals or mechanical engineering. In order to increase your chances in the job market you have to take up focused training programs, which will enhance your skills and enable you to accept challenges at the workplace. As the entire world is headed towards computerization, a course in computers will certainly brighten your chances to get a decent job. Computer training schools cater to the increasing demand for trained computer professionals in the industry.

Computer training schools can be found both online and near your workplace or home. Before you head towards any computer-training center, it is advisable to find about current trends in the software and hardware markets. Search on the net or talk to some professionals regarding the ‘in-demand’ training programs which will secure your chances to get hired by the employers.

Computer training is not only for students who major in computers. The training centers are filled with busy executives who regularly take courses to keep up with current trends. In this competitive world it is very important for these professionals to know the latest software packages and hardware tools available.

You can choose from an array of programs ranging from basic programming concepts to complex and comprehensive graphics and networking courses. Don’t be surprised to see housewives in a computer-training center near you. These ladies want to help their school going children in their studies and want to be updated in order to ensure a smooth sailing when they start work again. Start your child’s future with the best it schools so that he/she could make a strong base to face the competition.

The businesses have also realized the importance of training their employees on a regular basis. Since the workers find it difficult to take time from their busy schedules, these organizations hire reputable computer training schools to train their people either at their offices or in the specific computer training school. You may also contact at