In the terms and conditions of credit cards often, you must have read “due date” for paying credit card bills. First understand what “due date” means. As per a senior banking ombudsman official, credit card customers “unofficially’’ get “a grace period’’ of about three days after their due date in case they decide to make payment through cheque, to allow the amount to get credited into their account, which means, bank will not levy any late-payment charges.
On the other hand the heads of leading card-issuing banks have different view, they say in terms and conditions, given on bill statements and websites clearly states that cheque payment must be made three to five days (in case of outstation cheques) before the due date so that it comfortably reaches their account by the deadline.
What happens when a string of bank holidays and weekends falls between cheque deposit and its clearance? Suppose a cheque does not get cleared for reasons where consumer cannot do anything, then he/she still has to pay penalty charges.
According to Mumbai banker the due date-related disputes are common and from long time the consumers have been demanding for clarity on the issue. K Unnikrishnan, deputy chief executive, Indian Banks’ Association, while supporting said uniform norms on cheque deposit with reference to due date are required.
Sanjeev Talwar of Delhi-headquartered National Consumer Helpline stated this issue is quite serious because such a “default’’ will show up in a consumer’s credit history at Cibil (Credit Information Bureau India), from where banks gather information before deciding on sanctioning loan.
However banker added, in India, customers have to first pay a charge and then dispute will be resolved. While in developing countries, a card holder has the option not to pay a part of the billed amount in case he or she feels there is a dispute.
Thus any clear guidelines are formulated regarding this, customers should pay their payments ahead of the stated due date. Also, if they pay closer to the payment deadline, they should avoid depositing their cheques in drop boxes.
As per the Reserve Bank of India rules the banks must accept all cheques at counters and give an acknowledgment receipt to the customer. In case of any dispute this will serve as a proof of deposit.
On the other hand more and more banks are introducing “cheque deposit machines, which work like a screener and give you a receipt, which is a replica of your cheque with all the details,’’ informed a bank executive. Moreover to avoid long queues at counters, they provide the relevant proof. The consumers must remember the ruling in case of disputes rely on documentary evidence.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment