What According to CIBIL is Credit Hungry Behavior of a Consumer ?

What According to CIBIL is the meaning of “Credit Hungry Consumers” ?
India’s leading credit bureau, CIBIL which manages your credit history and credit score along with global leader Transunion has devised a word – Credit Hungry Behavior for Consumers who makes frequent loan applications [Personal Loan, Auto Loan, Credit Card, etc], as there will be a Credit Inquiry every time an application is made. This sends a negative signal for money lending institutions about the consumer credit profile. In such a case institutions who have already extended loan are likely to raise Interest Rates, Fees or EMI so as to secure their own funds.

To Explain the same, have a look at the following, Read the rest of this entry »

Axis Credit Card A/C Closed & Re-Opened – RBI Violation

Axis Credit Card RBI ViolationA reader of our Advisory Services seek guidance in his case where he closed his Axis Bank Credit Card Account after having it for 5 years and never felt like accessing the credit line. Now Axis Bank has re-opened it and he writes as following seeking guidance under relevant Laws, Rules & Regulations guiding credit card operations in India.

I haven’t used the Axis Bank Credit Card for more that 5 years now during my last discussion with bank, requested them to close the account, which they did. Now bank is saying as per RBI guidelines, they had re-issued the chip card to me, which i Read the rest of this entry »

Total Debit and Credit Card Issued in India Reaches 520 Mn in 2014

In continuing our tradition to source authentic data and present it to you, we have published the breakup of Debit Card and Credit Cards in circulation in India at the end of Dec 2014. It gives me immense pleasure to state that Total Debit & Credit Card Penetration in India has touched a whopping 520 Million / 52 Crore [1 Crore = 10 Mn] at the end of 2014, half the size of Indian population, still less than the 97 crore mobile connections India has.

The Following Chart Shows the Read the rest of this entry »

Why Can’t RBI Have Clear Laws on Late Fees / Over Limit Fees ?

Late Fee Over Limit Fee ScamThe Indian Banking Regulator – RBI publishes Master Circular for Credit Card Operations in India binding on the Banks / Financial Institutions. However, there are lot of shortcomings in the Notification especially when it comes to Late fees / Over Limit Fee levy. RBI without going into the details just asks the Bank to be Fair in its Practices and give Unilateral Powers to Banks without approving Card Members Agreement which changes quite often at the will & wish of the Bank. Most Banks Like HDFC & ICICI use Algorithms to maximize profits and this leads to Grievance in which Consumers are always at the receiving end. Let us discuss this with a case study of our reader who has enlightened his plight of Read the rest of this entry »

How HDFC Credit Card’s Rip Off With Late Fees & Over Limit Fees Lead You into Debt Trap ?

HDFC Card Debt TrapI’ve been running this Credit Card and Loan Advisory for over 8 years and during this time I have not come across a case as terrible as this one where HDFC Bank’s Credit Card’s division has optimized its accounting algorithm to levy Late fees, Over Limit Fees and push the consumer into severe debt trap.

A reader sent me an e-mail stating that he had spent a mere Rs 14,277 using HDFC Credit Card, and has already paid a whopping sum of Rs 1,04,612 [One Lakh Four Thousand Six Hundred Twelve] and the bank at its whims and fancy keeps raising bills which he is no position to pay and hence had prayed for help. I couldn’t believe if this was True and hence demanded statements. The user sent Read the rest of this entry »

VISA Reports Healthy Payment Metrics

VISA Card Digital MomentumFor VISA Cards, US and Int’l payment volume growth held steady in the quarter. US purchase volume growth (+10% YoY) remained steady at last quarter’s level as tailwinds from the Chase credit portfolio conversion (from MA) were somewhat shadowed by slight deceleration in debit volume growth (likely a result of lower gas prices). International payment volume growth also remained steady in local currency. Most notably, crossborder volume growth, which had been anemic for several quarters, ticked up nicely from 7% last quarter to 10%, driven by a pick up in the EU travel from the Middle East, China, and Australia.

VISA extended a multiyear agreement with Bank of America, its second largest issuer, on both the credit and debit side that will allow Read the rest of this entry »