Friday, December 29, 2017
The government on Thursday decided to limit the fees that banks receive on debit cards on transactions below Rs. 2,000/- to 0.40 percent which is against the 0.90 percent set by the RBI earlier for the first quarter of 2018. The government notified that it will support the Merchant Discount Rate (MDR) applied on shopkeepers by banks on debit card charges on transactions less than or equal to Rs. 2,000/-. The MDR on such transactions will finally become zero for the merchant and hence, they will become at par with cash transactions. The finance ministry explained lowering of fees for banks which was recommended by a panel looking into reimbursement of MDR. The issue on who will bear the charges on debit card transactions has seen several twists and turns. While the government had announced a complete waiver during demonetization, the RBI had subsequently introduced a system where the charges were lower for low-value transactions and not a complete waive-off. Also, banks have been told not to have a 'bundled' charge for debit cards and credit cards. Since, most of the debit transactions are below Rs 2,000, banks will end up receiving only 0.4 per cent MDR on most debit card transactions. However, on transactions above Rs 2,000, MDR would be applicable on the full transaction value. Following opposition from banks, this was replaced with a system where merchants with turnover of over Rs 20 lakh a year would pay 0.9 per cent and smaller merchants would pay 0.4 per cent. Even as merchants were opposing this saying that 0.9 per cent was too high, the government stepped in and said that it would bear all MDR on debit cards for two years. A similar move to reduce charges on credit cards would also be welcomed. More efforts and user friendly moves would curb cash transactions to greater extent and help build India into a cashless economy. Solve your Credit card & Loan Problems Call @ 9962999008.
Sunday, June 11, 2017
Creditors can take action to recover their money if you have unpaid debts and this intent is not illegal by itself. However, if the steps taken to recover the debt amount to harassment or cause you trauma, then you have the right to put an end to it. What is harassment by creditors? Sending reminders for their dues, calling you for the purpose of recovering the debt during working hours or even taking court action are technically not illegal. Creditors have the right to recover their money owed. However, if creditors' behavior includes the following actions, it could be seen as harassment, which you have the right to put a stop to: - Contacting you any odd hour of the day, including early morning and late night - Not informing you that your debt has been transferred to a collection agency - Threatening you, either verbally or physically - Not acknowledging it if you deny the debt; persisting with their collection practices - Suggesting or pressuring you to get another loan or sell your existing assets to meet your dues - Showing you false documents that look like court orders or legal papers to pressure you - Telling you that your debt liability is a criminal offense or implying that your assets can be taken away from you as part of legal action against you - Giving you the impression that legal action has been taken against you already - Informing others about your debt directly or asking them to pass on the message for you - Contacting you on social networking sites like Facebook As a consumer, what can you do? You need to start keeping a record of the calls or contacts made. As a consumer, you have rights that protect you from this harassment. However, ideally, you need to get in touch with a legal professional to help you understand what would work for your case against the creditors' behavior and how best to stop the harassment immediately. A legal professional can guide you on how to start building your case while also helping educate you on how best to deal with creditors until the harassment is brought to a full stop. The Fair Debt Collection Practices in India puts down certain behaviors by debt collectors that are not acceptable. If collectors indulge in these, legal action can be taken against them: - Collectors cannot harass or abuse the consumer - Make repeated calls or use obscene or profane language - Make threats of violence - Make public the names of people who have debts unpaid - Make calls but not identify themselves Article by the Top Credit card Advocate in Chennai The customer can approach legal forum and get orders prohibiting the agents harassment. For More information call Daniel & Daniel from the top loan defaulter Advocate in Chennai @ @9962999008.
Friday, January 1, 2016
Saturday, September 5, 2015
“Psycho-terrorism” word aptly used to the illegal recovery methods, adopted by the Financial Institutions. Though the RBI, BCSBI, and IBA are issuing guidelines, none of the Financial Institutions are following these guidelines. Large number of specific reports are available through out the country in the Media &Press, apart from our representation to the Government and RBI. Even though the BCSBI has issued Code of Conduct for the recovery of dues and repossession of securities. The Financial Institutions hardly follow the Codes and guidelines. As an Association we cannot go on filing cases against each and every wrong. Then we have to file at least 100 cases a day. As a Voluntary Association, it is impossible. We have come across Financial Institutions spending huge money towards legal expenses by using the public money by making appeals after appeals against the customers. The guidelines are there only on paper and the Financial Institutions undertaking to follow the guidelines in writing but in practice they are thrown to the winds. As we failed to get response from the controlling authorities, as a final step, we have asked all our members to apply “Newton’s 3rd Law” i.e. For every action, there is equal and opposite reaction. There is no need to explain the method used by the Financial Institutions. It is in the interest of all, firm action needs to be taken against the erring Financial Institutions. Otherwise, there will be only street fights. Writer : K.P.Satish kumar M.L. Advocate & Legal Consultant For all your complaints call 24 hrs Helpline:- 9962999008.