Monday, June 30, 2008

Pay Me Back My Money!

Credit card company charge us ~18% p.a for our outstanding balance, and counted base on daily rate.

But, if we made excess payment, and have positive balance for few months, why is it that they are not paying us back the interest accrued? Do we have the right to ask them for the interest? Can we charge them back?

7 comments:

yapthomas said...

Hey, found your link here through a search.
The tiered payment system is pretty much good anyways. It makes you make prompt payment to enjoy 15% per annum.

If you look at the chart here...

http://www.citibank.com.my/APPS/portal/genericLoadPage.do?tabNo=3&htmlPageName=/info/det/creditcard_tiered_pricing.htm

Most of the banks that will follow suit will follow similar plan.. :)

Sumuk said...

Hey Thomas, thanks for dropping by.

I do agree with u, since the 3 tiered systems is like an incentive to the consumers. But dont miss the tiny print there, which is

"Changes following the tiered system"
Interest Free Period
The Interest Free Period for retail transactions will be 20 days from the statement date and is applicable only for cardmember who pay in full on or before the payment due date. If cardmember opts to pay partial or minimum payment, finance charges for retail transactions will be calculated from the day the transactions are posted to the card account.

Just imagine, we are saving on our late charges, and also saved on 3% p.a if we are able to pay promptly every month. But the new changes is that there will be no more 20 day interest free period on subsequent month if u dont pay in full on due date. I mean, its not that easy to keep up that good record, unless u just started using credit card. In the end, the 3% we save does not justify for the snowball of interest we had on the outstanding balance.

Anyway, it depends on how we see it. I do personally want to see it in a positive way. It help me to control my spending. But this also means our spending habit will be curbed, and this is not actually healthy for our economy, unless the outsides e.g foreigner, tourist is spending their money here more than us.

Anyway, let us be positive about it, and hope that we will able to control the urge of -spur at the moment- shopping ;p

Sumuk said...

Btw, u can read my posting on similar subject here

http://sumukeyes.blogspot.com/2008/06/who-will-get-last-laugh.html

Hope to see you around again :)

lvynana said...

yoh yoh geh doh! mitie duit sok otto sija kroja yoh mitik!

Sumuk said...

yala. mmg dia picit abis2.

ini sudah kes "saya mau tolong, sebab saya mmg along!"

just imagine, if we deposit money into normal bank, we only get back interest the most 9% (ASB only la). tapi diorg charge balik sampai 18% (old rate). *sigh*

yapthomas said...

"But the new changes is that there will be no more 20 day interest free period on subsequent month if u dont pay in full on due date."

But they said, either you pay full or minimum, you don't enjoy 20 days interest free. So, pay more than minimum. RM 150 min. pay RM 160. Won't hurt much .. hahaha

Sumuk said...

Nola, not like that. New regulation is, u only enjoy the 20 days interest-free if u have clear ur balance from the previous months statement. Now im tryng very hard not to use cc oredi :p

 
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