My phobia of Credit Card Companies

I received 2 letters attached to my June statement from UOB Card Centre:

June 2008

1. Enjoy Lower Interest Rates for Prompt Repayment

UOB is introducing a new Tiered Interest Rate Structure…Cardmembers who paid their minimum repayments promptly, that is on or before their payment due dates, will enjoy reduced finance charges.

2. Extension of Payment Due Date

…you are selected to enjoy an extended Payment Due Date by 7 days just for this statement period. Therefore your Payment Due Date will be 10 July 2008.

My statement details:
Statement Date: 13 Jun 08 Balance due Rm 168.91
Payment Due Date: 03 Jul 08

Date of receipt of statement (late) and cheque issued: 30 Jun 08 and posted (thinking there is still time with the extension).

For the past few years, I have had no problem with my method of payment by posting my cheque when the statements were received 8-10 days before Payment Due Date.

Yet, the first time, I am offered this ‘extension of payment due date’, I received my statement late and was under the mistaken impression that the extension was sufficient to cover the delay.

I cannot help thinking my cheque (supposedly lost in the post) was deliberately held back so that I am penalised Rm10.00 late payment fee and Rm10.86 finance charge which work out at 12.35% for roughly a month. As I have been ever vigilant since my son’s experience with HSBC (Visa & Mastercard) and recently Stanchart (Visa) I am not about to give them the benefit of the doubt. I am fortunate the balance happens to be relatively small. But I have decided to pay each month at their branch in Ipoh.

Statement Date: 13 Jul 08 Balance due Rm 1,289.02
Payment Due Date: 02 Aug 08

I managed to deposit cheque personally on 25 July (Friday) as ‘Late Local cheque’.

On Monday afternoon, I got a call from UOB enquiring about my unpaid Rm168.91 due by 03 Jul 08. When I enquired about this later, it was explained that it was supposed to be a polite reminder. But I felt insulted because I had been a good paymaster for a number of years and they are actually chasing me for such a small amount! I would not have been so annoyed if not for a fact that I had sent off the cheque in time. But of course it was my word against theirs and even if I had ‘proof of posting’ it does not mean ‘proof of receipt’. But under the circumstances I cannot help but feel it is a way to make me pay for some charges instead of the usual full payment each time.

Then on 31 Jul 08 I received a letter from Credit Control Dept, UOBM, dated 24 Jul 08 showing
Current Balance: Rm2,816.00
We are concerned that your credit card account is currently overdue…

Initially, I was concerned with the balance of Rm2816.00 as even for the fact that my cheque deposited on 25 Jul was obviously not cleared yet, based on my 13 Jul statement, it should have been 1,289.02. By right, for the purpose of informing me of the amount overdue, it should have been Rm168.91 only as the balance on 13 Jul was only due on 02 Aug! The person who took the call at Customer Service confirmed that my balance was actually Nil as at 31 Jul 08, on the day I complained.

To add insult to injury, there was a last paragraph:

Note: Bank Negara Malaysia has established Agensi Kaunselling Dan Pengurusan Kredit (AKPK) to provide free service on money management, credit counselling, financial education and debt restructuring for individuals. For enquiry, please call 1-800-88-2575.

Wait a minute! Isn’t this to do with those having problems with ‘Ah Longs’ as advertised on television. Thank you very much indeed! I really took exception to this last paragraph which put me under the desperate category already.

So UOB gave me a Platinum Card and then insult me for owing Rm168.91 overdue a month through no fault of mine. For all the sales effort in trying to get people to sign up and this has put paid to any goodwill, if any, left in this cardmember.

My advice to Mr. Yap Kok Tee, General Manager, Credit Card Centre:

Please assign humans to check first before sending out computer-generated letters, which do not require signature.