Credit cards cause high blood pressure and waste precious time

I think the credit card companies of banks are making people lose respect for them.
While the aggressive sales personnel are at popular shopping malls approaching all and sundry, offering easy approvals, the bank’s computerised systems, out-sourced telephonists (if you are lucky to wade through the buttons) who have no idea of the operations create really frustrating conversations. In other words, one cannot deal with anybody who can act with authority. We are always advised to write in, whether it is for cancellation or submitting written queries.

I had bad experience dealing with HSBC over the almost impossible cancellation, be it in person, by mail or by phone. Therefore, I sounded, unfortunately for the innocent lady who answered my call at Citiphone, rather rude, almost cursing. I told her that as far as I know, my son had cancelled all credit cards issued in Malaysia before he went to work in UK about 2 years ago. I asked if she was sure that the bank did not re-activate already cancelled card based on their existing record and she answered positively. I had my doubts as to how a telephonist would know the crafty world of business.

Sure enough, when it was waking time in UK, I messaged my son asking for confirmation that he had cancelled his Citibank credit card. He replied, “I cancelled ages ago. Don’t pay anything.”

Again, I knew it is not a solution by just not paying anything when the bank’s computer generated a bill for Rm90.00 for annual membership fee on March 5. I could foresee the consequences of not paying: come due date, penalty and/or interest will be charged according to their computer system. To add to the problem, the address was PJ and any subsequent letters are likely to be ignored unless I happen to be there.

Having known the way the system works, I can see why the credit card companies are trying their level best in getting people to sign up. The more members they get, the more they can create charges on unsuspecting customers.

1. People tend to ignore frequent standard letters. The danger lies in not knowing that a credit card which one thought was cancelled had been re-activated without consent.
2. Even proper cancellation had to be followed up as subsequent letters could show an active account! This follow-up procedure is necessary not only for the first few weeks but as detailed in my son’s case, after one or two years!
3. It is very lucrative because of the large pool of credit card members for the bank to charge minimum penalty of say Rm5.00 for non-payment of a few cents outstanding which most people either ignore or unaware. Soon, the accumulated amount will be sufficient to warrant a demand letter and subsequent legal notices.

I think it is worth re-visiting my post last year:
SATURDAY, MARCH 10, 2007

How Silly Bank Charges...
What I posted in Lim Kit Siang's blogsite:-

K S Ong Says: March 8th, 2007 at 12:31 am
It is a strange coincidence that I was about to write about How Silly Bank Charges, in connection with HSBC Mastercard and Visa credit cards.

My son went over to UK to look for a job. He did not cancel his credit cards with HSBC and Standard Chartered. The latter account was left with a few ringgit in credit which did not pose any problem.

When I received the HSBC card statements with small balances and knowing the bank charges a minimum of Rm5.00, I had actually called up their call centre to confirm what would be the following month’s charges so that my cheque would be in time as well as sufficient to cover any outstanding amounts.

My son came back on holiday and went to the bank to cancel the cards and I was furious when he showed me the following details:-
Mastercard /Visa
Credit used as of last payment 12.51/11.38
Payment – thank you 10.95/11.34Cr
Late payment charge 5.00/ 5.00
Total credit used 6.56/ 5.04
Your statement balance 6.56/ 5.04

Because of the initial outstanding 1.56 and 0.04, by the time he settled, he was slapped with another 5.00 late payment charge each which totalled 11.56 and 10.04 respectively.

In the first place, it was futile of my initial effort to call up and make payments thinking it would settle the accounts, leaving only the formality of his cancellation of the cards.

Secondly, it showed the inflexibility of using computers and the inability of human intervention in the form of using discretion which in the good old days, a bank officer or manager could effect to maintain goodwill.

K S Ong Says: March 9th, 2007 at 12:01 pm

Sorry to bore readers with story on pennies instead of big bucks.
I am continuing with the saga of HSBC credit cards. My son just received his statement and to his horror, there were still balances of 0.04 and 0.01 outstanding in his Mastercard and Visa respectively.

Just imagine, having personally visited the office to sign cancellation docs and paid outstanding amounts on Feb 27 could not effect it, what else is required?

I bet HSBC’s computer is programmed to leave behind balances so that they can continue with their senseless late payment charges.

What happen to the humans in charge in the silly bank?

I am glad he is still around to give them a piece of his mind.

I was told he was kept waiting for half an hour and they finally agreed that he should pay the 5 sen to settle it.

Imagine the waste of time, petrol and parking charges over a such an insignificant amount. Whatever goodwill the bank enjoyed in the past was gone forever.