Note: CCHAI  refers to Credit Card Holders association of India

Have you ever used the credit card and purchased any durable items like TV, Refrigerator, Washing Machine, Computer etc.,? Have you verified your credit card statements if you have opted for revolving credit by paying 5% of the outstanding? What will be the result? One Lady bought a Washing for Rs.18,000/- and paid the Bill through credit card in November 2004 and was paying minimum payment due amount like Rs,1000/-, Rs.1200/-, Rs.1400/- EVERY MONTH. The total amount paid till April 2007 comes to Rs.38,740/-. What would the balance as on date? The present outstanding balance in May 2007 is 48,000/-. The total amount Payable for the washing machine comes to Rs.86,740/-. These figures are not imaginary. These figures are from the monthly statement of the Bank. This is only an example as to how these credit card companies are looting the ignorant and honorable card holder by coercion and intimidation. This is not an isolated case. There are lakhs of similar cases in the country..

Suppose the same amount of Rs.18,000/- is taken as personal loan at 36% p.a. The same can be cleared within 24 months by paying EMI of Rs.1063/- and the Total amount payable would be Rs.25,512/-.i.e.to say that the Bank is collecting Rs.61228/-more, which is the illegitimate income to the Bank. In India, if a person pick-pockets Rs.10/-, there is punishments. What type of punishment is there for these Banks? More than one crore card holders are there in the country. If you take average Rs.10,000/- excess collection by the banks from an individual cardholder, the amount would Rs.10,000 crores. Is any body say that the finding of the Study conducted by the CCHAI that Rs.6,000 crores was looted by these credit card companies in ten years is wrong. The need of the hour is to make an Income Audit of the credit card companies to know the source of other income in their Annual Balance Sheets. It is like Anti-Corruption Officials arriving the figures by comparing with the known source of income versus wealth amassed. Similar study is required in case of Foreign Banks and some Indian MNC Banks by an Independent Group, so that, the truth will come out. Can we expect the RBI as Regulator will take up this task and refund the excess amount illegally collected by the credit card companies to the respective card holders.

For more details pls refer the site

http://www.creditcardasson.org