Credit Card Interest Should Not be More than 30%

In what was termed as a great move, the Supreme Court has refused a stay made by national consumer forum stating that banks cannot charge more than 30% interest rate annually if the full amount on the balance is not paid on the credit cards. Some banks are even charging around 50% as interest charges annually. This will definitely put a halt on these credit cards issuing banks who have been the customers for granted in this issue.

Now, we will have to wait and see how well this is implemented and how the customers are benefited from it since this is just a stay and a full law should be made in this regard. And also the foreign banks are going to appeal against this stay.

It is to be noted what these banks have listed as the reasons why they are overcharging us, very funny,

Processing cost for setting up a new card in operating system
Cost of courier and cost of embossing the card
Cost of providing phone banking service
Cost of sending monthly statements
Cost of providing internet banking facility
Cost of waiving charges for service reasons
Cost of marketing and promotional offers
Cost of rewards and loyalty programme

And what’s more even funnier is the fact that they have mentioned the call rates that they have to take up to call the random customers to persuade them to buy their credit card!! It is not us who are asking them to call us to get the credit card, but it is those banks who do this for their profit and they are not doing any social service.

There should definitely be a cap put somewhere to stop these credit card companies from over charging using various hidden and other charges as well as the interest charges.