Monday, October 20, 2008

Credit cards and penalties

Recently, I missed paying my credit card bills by a few days and was promptly slapped with a penalty, service tax and then some. This, from a bank of which I have been a (good, timely paying, "preferred"?) customer for almost 5 years with their credit cards, home loans and banking divisions. I did not intend to default, it was a genuine mistake. On calling them, the charges were duly reversed, but have they not heard of something called customer experience? Or were they trying to scare me? I was ready to cancel my card, if they did not understand my genuine mistake. All in all, it left a bad taste.

Surely, there should be some system of rating customers for the bank so that they know who is a wilful defaulter and who is not? And surely, these two sets have to be treated differently? Or perhaps the idea is that if they pay, take it What ever it is, the point is, it does not take too much to lose a customer in this day of a zillion banks and every bank hankering to give good customer service. If I cancel this card, I can use another one.

Banks should not make the mistake of assuming that they are the only one for their customers, especially taking for granted the ones who have been loyal customers for a long time. Instead they ought to capitalize their relationship with such loyal customers. But, who will change the "rules?"


ggop said...

That's harsh! I thought you would only be subject to the late fees (since you didn't miss the payment)
and possibly a small prorated finance charge.

Neo said...

if you pay ur credit card bills on time and in full; then you are not the "best" customer a bank is lookin for.
they need someone who jus pays the minimum.

the only way to earn from guys like us who pay on time is to take advantage of our memory lapse :)

Neelakantan said...

Of course they did not cancel the card, when I called they reversed the charges.

Neo, fully agree. I did not realize that I am a bad customer in their books :)