Being charged excess interest
I used Easy Payment Plan (EPP) from RAKBANK on October 11, 2015, as per zero per cent interest rate and 0.5 per cent processing fees on the transaction. I got shocked to see my recent card statement; RAKBANK charged the regular interest rate on monthly basis for the EPP installment.
When I contacted the call centre, they said that each month the EPP amount added up and the total amount due was shown on the statement and the interest is charged for the balance amount due. If I calculate the interest charges, the bank is indirectly applying the interest on the processing fees and EPP installment amount on a monthly basis. At the end of the EPP tenure, I would have paid a huge amount over the actual amount and processing fees where bank claims it had zero per cent interest.
They need to change the programme to exclude the EPP amounts from the balance to pay total and not to simply add the total and calculate interest. I didn’t expect this from RAKBANK and the response was very poor even after the continuous calls and asking them for clarifications.
I need Gulf News’ intervention in this matter. Please help.
From Mr Sudhakar Dhamodharan
The management of RAKBANK responds:
RAKBANK offers Easy Payment Plans (EPP) to their credit card customers, which allow them to split the payment of a transaction over several months without incurring any finance charges. Mr Dhamodharan availed of a six-month EPP for his credit card transaction in October 2015, wherein he was required to pay an equal monthly installment for his chosen tenure.
We have investigated his concerns and confirm that no finance charges should have been levied on the unpaid balance of the transaction until expiry of the tenure requested. However, due to a technical issue at our end, finance charges were applied on the converted transaction.
We have contacted Mr Dhamodharan and apologised for the inconvenience caused to him. The finance charges levied on the converted transaction have been reversed and the client has been informed.
Mr Dhamodharan responds:
The issue is resolved and the bank is reversing the charges. Thank you Gulf News for helping me resolve this issue.
(Process initiation: January 5. Response from organisation: January 7. Reader confirmation: January 12.)