Referrals rewards pose an issue
Some months ago, I established a priority banking relationship with Standard Chartered Bank by shifting my salary account from another bank. Subsequently, the relationship manager wanted my referrals to secure additional clientele. I accepted this request and introduced two of my contacts to the relationship manager. The relationship manager assured me that there is a referral program, based on which, I would be paid a cash reward for each successful application.
The priority accounts for both of my referred contacts were opened successfully by the relationship manager, as they met the minimum salary criteria for priority banking.
Once the relationship manager confirmed the account openings to me, I checked on the referral award due to me. The relationship manager informed me that the referral reward becomes due only after the first salary credit is received into their accounts. A few weeks later, once the actual salary credits were received in their accounts, the relationship manager informed me that her team is working on the details and that I will be advised about the rewards very soon. Thereafter, she proceeded on a long leave due to her wedding.
I let a few weeks pass before following up with the relationship manager. I received a similar response as before: that the bank’s back office team is working out the details.
Then, finally, the relationship manager informed me that I will not be paid any referral rewards for either of my references. The reasons cited were as vague as they could be. What I have managed to comprehend is the following:
The first referral didn’t get a reward because even though the account holder’s monthly salary is much higher than the eligibility criteria of Standard Chartered Bank, the net salary credited into his account was lower than this criteria. As confirmed by the referral himself, the bank has taken all papers and salary certificates and based on this, opened his priority banking account.
Ironically, during this period, the bank has apparently lowered the eligibility criteria for priority bank accounts and net credit of my referral is higher than this new minimum amount. However, they continue to use the previous eligibility requirements for evaluating the reward pay out.
The second referral is not eligible for a reward for reasons the relationship manager herself does not understand. The net salary credit for this referral is higher than the eligibility criteria. The relationship manager herself admitted that she does not know how to explain why there is no referral reward being paid out.
In summary, I find it extremely difficult to comprehend as to why Standard Chartered Bank would try to find ways to avoid paying the referral reward due to me. How can the bank be using different criteria for the same subject for different accounts? Why would the bank actually open priority accounts for both the referrals and yet, tell me that I will not get the referral awards, as neither of them qualifies for priority status?
I would like Gulf News to consider this matter.
From Mr Sandeep Gupta
Dubai
The management of Standard Chartered Bank responds:
Upon receiving the complaint, Standard Chartered’s Customer Care Unit contacted the customer and explained the mechanics of the bank’s referral programme. While we appreciate Mr Gupta’s referrals, the terms and conditions that apply don’t entitle him to enrol in the referral rewarding scheme. The team met Mr Gupta and explained these terms and conditions. The issue is considered closed from our end.
Mr Sandeep Gupta responds:
I am afraid the issue is not closed from my end. The bank has indulged in gross misrepresentation and malpractice to acquire additional clientele. All this was done without upfront disclosure of any relevant terms and conditions. The fact that they acknowledge my successful referrals puts an onus on the bank to prove that any relevant terms and conditions were declared to me and signed by me, just the way they do for anything else - a priority account or a credit card.
I challenge the bank to provide me with such evidence. If the bank refuses to pay the referrals rewards, I will consider taking the next step, including legal action and/or social media. I have enough evidence to give to the media that no such explanations were offered to me in the most recent meeting.
I hope the bank starts acknowledging their misdeed and humbly takes the step that enables them to retain my business as well as that of the referrals.
Thank you, Gulf News, for your support so far.
Editor’s note: The management of Standard Chartered Bank responded that they stand by their initial response to the client, that the terms and conditions are clear.
(Process initiation: February 18. Response from organisation: February 25. Process completion: March 16)
Editor’s note: Do you have similar issues that you would like to raise with us? You can write to us at readers@gulfnews.com.
