Reader's issue addressed

Over limit fee

I am holding a Standard Chartered Bank gold card with a credit limit of Dh14,000. Surprisingly, I got a bill of Dh190. I contacted the bank and asked them why they still allow a transaction when the amount exceeds the credit limit.

After a long discussion, I paid all dues including the over limit fee and requested the cancellation of my card. They told me that somebody will contact me. However, nobody called me, and it has been two weeks now. I request Gulf News to create awareness about the over limit fee.
From Mr Lal Abdul Salam
Dubai

The management of Standard Chartered Bank responds:

Upon receiving the complaint, Standard Chartered contacted the customer and explained that over limit fees are valid charges levied by banks on customers. Banks provide customers with over limit purchase facility to allow them to make urgent purchases in case needed. These fees are transparently communicated to customers through the bank’s website and the Service and Price guide book, which is available at the bank’s 11 branches.

Mr Abdul Salam responds:
Thank you for your response and the prompt action. The bank contacted me and offered me a discount on the charges they levied during this incident. But if it is a valid charge that cannot be waived off, how can they offer a discount?

It shows their treatment is not uniform with different incidents and different customers. That is the reason I asked them to charge the full amount so that I can cancel the card and stop any blunders from happening in the future.

While agreeing to the fact that banks are updating their customers regarding how various charges may apply when using credit cards, I cannot understand why they promote redeem points, cash back, discounts, and so on, to increase the usage of their cards by customers.

But when customers use it over the limit, instead of requesting to increase the limit, they prefer to charge a penalty from the customer. Having an account with Standard Chartered, I had a standing instruction already given to settle my outstanding balance when it is due.

I think that the bank should have contacted and updated me to clear the outstanding balance and allow the provision without adding charges.

I thank Gulf News for enlightening the public of these so-called facilities as it is the social responsibility of a person who learned a bitter lesson to educate others to be careful and aware.

Standard Chartered Bank  responds:
On occasions, discounts may be given to the customer based on their good credit relationship with the bank.

However, the charges levied on the card remain valid. As mentioned earlier, customers are made aware of the fees and charges through our website and our branches.
To prevent customers from avoiding fees and charges imposed when their card goes over limit, there are various facilities offered wherein customers can keep track of their spending such as our Online Banking and Phonebanking to name a few.

As for Standing Instructions for payments of a credit card, this facility is offered for payment on the customer’s due date while credit card limit increases are given post an intensive screening and is not dependent on when the customer goes on over limit.

Mr Abdul Salam responds:
I appreciate the organisation for listening and responding to the grievance of its reader whose real intention was to educate the public.