Credit Cards should mean different things to different people. To those in business and commerce it is now an indispensable instrument for quick and efficient transactions. To those in high society it is yet another status insignia. To those in the middle class it could be a crisis, time, and business “manager” if cautiously used. To those in the lower class it is a menace.
In this review I am concerned with the middle class consumers.
I have been having a Citibank Master Card for several years now. I went in for it to tide over some financial crisis by rearranging my repayments for which Credit Cards are very useful.
No doubt, by and large the officials are prompt, polite, courteous, helpful, and professional, for all of which the Bank gets full marks.
But like any other Credit Card the Citibank Card has its limitations. I shall mention at least three.
One, its interest rate is usurious and can put our traditional moneylenders to shame. To the interest is added other charges such as service charge, and now a 5 percent tax. When I enquired about this tax, I was told that the Government imposed it. Ideally all such taxes should be paid by the service provider and not by the user. Unfortunately in our country, which is notorious for buck-passing, the receivers are the victims.
Two, I find from my Citibank Card statements some unexpected entries on the debit side. Since I have been seeing this for quite some time now, I enquired about it. The response was these are as “shields” (I am not a Sportsman!) for insurance, recovery of the loan in case of my death, and so on. Incidentally, practically any company concerned with finance now has a “death wish” – of their clients and customers and invariably go for accident and death cover!
I insisted that since the payments are deducted without my knowledge and consent, and I did not accept the Card on any such terms, all the hitherto payments for shields should be refunded to me along with the interest which the Citibank charges from its Card holders. I said this on phone a couple of days ago, and the person agreed to do so. If I do not see this refund in my next statement I would take up the matter more effectively.
I may add that as a concerned and committed writer and social critic, I am upright and upfront, and do not tolerate exploitation, injustice, and other unfair practices, which I tackle even legally even if I have to spend with no monetary gains in return. I do this, as I firmly believe that principles, procedures, honesty, integrity, etc., are indispensable to social well-being, and persons like me who are in public sphere have a greater social obligation in ensuring these and in correcting distortions in society.
Three, as in the case of Internet channels, and probably other Credit Cards, the Citibank is notorious for SPAMMING.
Despite its commitment to privacy Card holders are flooded with propaganda mails. Needless to say, for the Bank it is business, and it is allowing itself to be used for advertisement purposes. But, considering the Banks credibility, more often than not such spamming is dangerous for the Card holders. Seeing the Banks Logo on the letter, and the glossy and catchy nature of the advertisements, Card holders succumb to the temptation of unwise spending even on unwanted products.
That apart, occasionally, the advertiser turns out to be spurious much to the discomfiture and loss of the Card holders.
I had a very unpleasant experience recently, which I splashed on various web sites such as of the Indian Express, Tehelka, and the bbc.
I reproduce it below in public interest. Before I do so, to be fair to the Citibank, in response to my email along with these web splashes, the Chennai Chief of the Citibank phone me and apologised profusely for whatever happened, and assured me of prompt action. He also sent me e-mails to the same effect. Presumably after his intervention, I received two more of the four gift items (one I had already received), though none of the issues of the magazine for which I had subscribed.
Later I had another phone call from the Citibank from another official, apprising me of the action taken on their end, and assuring that if I am still not satisfied, the Citibank would refund me my entire subscription. I am still awaiting the result of the said action.
Fourth Estate Fraud?
Permit me to use your web site to share my experience regarding the subscription of an advertising magazine.
On August 25, 2001, I received a letter marked “Exclusive Offer for Citibank Card members”. As the letter came in a Citibank cover with the Citibank Logo, in good faith I subscribed for this Magazine for five years. The amount was debited to my Citibank account on September 5.
When I did not get even an acknowledgement, leave alone the Magazine, I sent a message to Spectrum through its Web site. When I did not get any reply, I sent an email to Anil Metre, Spectrum editor. I did not hear from him either, though he signed the letter.
I then sent a long email to Atul Malik, the Chennai chief of the Citibank, explaining my exasperation and the likelihood of my initiating legal action against both the Citibank and Spectrum. I did not hear from him. I sent a copy of this to the Spectrum editor. I did not hear from him. Later, I received an email from its subscription department, which I reproduce in public interest:
This is with reference to your e-mail regarding the non-receipt of your issues… We would like to inform you that we have not come up with any issue in the month of Oct. as the magazine was under the process of redesigning. However we assure you that the periodicity of issues will not be affected by the same and will be extended accordingly. The next issue, i.e. of Oct. will be dispatched shortly.
The reference in the e-mail that Spectrum has not come up with any issue in October (and for that matter till this date) is serious.
Before launching the subscription campaign, it knew that there would be no issues since October. Yet it has collected subscription from the public without revealing this. And even if it has managed to collect subscription from at least 10000 people, that itself would be a big cash-crop (for five years the subscription amount is about Rs. 3000).
If at all it is redesigning the edition it should not be at the cost of the public. Worst still, it has not cared to despatch even the promised gifts (four items for a subscription for five years).
I wonder how many persons like me have been taken for a ride by Spectrum through the Citibank. As this shows the entire Press in poor light, by publishing this write-up you will be doing a service not only to the public but also to the so-called fourth estate.